RE:With the recent financing issue at TGOD and the cash on I personally believe no more of 48North's money should be invested in expanding the cultivation of cannabis.
There are states in the US that are growing thousands upon thousands of acres of hemp at the moment. When they are allowed to make the switch over to cannabis, 48North will likely be able to buy it from them for cheaper than they will be able to grow it themselves, even at $.25/g. Cannabis is becoming a crop and I'm sure 48North knows it. I believe they are trying to capture a segment of a huge future market with great margins by selling products that contain CBD and THC.
They brilliantly saw a short term opportunity (a couple of years) to make a bunch of money by growing cannabis, and they are going to make the best of this cash bonanza by making a brand.
They likely know, in the future, it will not be worth it for them to compete in the cultivation space.
I could be totally out to lunch on this, but it’s how I read it right now.
rosalinemccall wrote: With the recent financing issue at TGOD and the cash on hand at 48N I think there is an opportunity to acquire some of their unfinished greenhouses. This would provide greater organic capacity while allowing a little more control over outdoor growing. This diversification would be helpful as foul weather for a season or two could hit us hard. There are also some relationships that are already there and more there that could be leveraged. I would rather see this over anymore M&A at this point with their cash.