BC Craft Supply Co Ltd CRFTF

Needs to be a business behind the brands to make sense

[Wallhalla]

Its great that they were able to assemble a variety of established grey market brands, but there is no path to distribution (and therefore revenue and profit) without being a licensed producer who can grow and sell weed.  The acquisition of Medcann is a good start, but they only have 10,000 square feet and nowhere near enough product to justify the current valuation.  (They only got their license in March 2019 so I'm not sure they are even in any provincial stores yet.) The idea of signing up micro-growers is being done by many other LPs and requires a significant amount of capital under Health Canada's new rules, so no guarantee here. Only other potential revenue stream is through licensing deals, but there are so many brands that already have shelf-space that it makes no sense to pay for a licensing deal.  This only makes sense when you need brand recognition to help sell product, a problem no LP is having right now.