Reality checkColorado has been a little fortune telling ball of the Canadian future. Do you think I’m a genius knowing a over supply would happen? Some of you may think so but nope. I researched what happened with Colorado’s market after legalization and it had a great sold out kick off followed by massive over supply crashing the MJ prices and profit dreams for the companies. This is what’s happening right now to Canada. Demand increases once prices cut in half. What’s hexo SP worth when 2020 revenue is actually only $200mil?
Then there’s drinks. After being legal for 3 years, plenty of time to develop products Colorado’s beverage market is only $1.4mil sales per month. Multiply by 7 to factor in population difference and that would be $10 million per month. $120 million per year sales. If Truss captures 30% that’s $40 million sales. MAYBE $20 million profit, per year. And hexo is what 45% of truss? So $9 million profit?
SO maaaaybe this isn’t a good sector to invest in, my Colorado crystal ball hasn’t lied to me yet.
https://www.cannabisbusinessexecutive.com/2018/06/cannabis-beverages-modest-market-thirst-growing/