RE:RE:WebcastMy takeaways:
-Potential to double number of brands handled by Calyx in the next few months.
-Nevada has put a stop on all state approvals for the time being. Not clear when this will be resumed. GT will be a takeover in escrow for the time being.
Adam gave a good explantation of why distribution doesn't make sense in other states. Most states don't even allow for distribution (e.g. Nevada and Colorado only allow for transit and no associated services).
20% gross margin is a good distribution margin. It's a volume business. It's why I'm excited about the potential to double the number of carried brands.
Overall, I didn't find many surprises. I also walked away for some of the discussion on Golden Triangle. I thought it was funny that Adam, David and Tom were all hanging out in Thailand recently. I wonder if it was drug fueled Fear and Loathing type of trip.
Presentation was recorded, I'm sure it will be up on the web. Adam is obviously a smart guy and he's obviously proud of the work they've done. He's just not a thrilling speaker but it was a lot of good information all put together.
420man wrote: A lot of info that we knew, key takeaways for me were:
- operations in 7 U.S. states
-access to 685+ dispensaries
- not thinking of a rollback , scoffed at the idea
- wants to provide shareholder value
- will be / are looking for financing soon but more so , strategic partnerships
- expecting to close nevada soon , any day .
- ceo of GT working with eat team closely
- the debt they do have, 13 mill , they have a two year window before it's due
- 24.8 million yearly run rate , not including 10 mil that Nevada and Colorado ops are making now but are not on the books
- plans to try get Colorado revs on the books soon and GT when it closes
- looking to expand calyx as regulations in other states open up but focusing on Cali.
- have rapidly scaled calyx with 7 quarters of growth
- calyx serves curaleaf, guild, st ides and other top brands
- Pabst starting its foray into cannabis through st ides
- finishing buildout Fli labs NorCal
- no talk of abba medic jv or Chv deal with buzz.
undervalued compared to peers . Adam seemed confident about the future
another good point was how the business of distribution is a business that larger more mainstream traditional businesses would find familiar. As opposed to the Coca Cola execs getting into a co
pany that only grows weed. Not the best margins on the distribution end (20%) but they are making $.
feel like I missed a few . He mentioned federal legalization in the US and how he feels that would bring in a lot of the larger companies looking to buy . Valuable network they have built in cali.
the usual Adam style but sounded more confident and upbeat. All in all , decent . I did ask about Canada but no answer. They mentioned they may have something afterward that addresses more questions but who knows