Next steps Next steps are going to be crucial.
LP's are going all in with the next wave of permitted products, not sure how popular edibles will be but some companies are making big bets. I like what 7Acres is going for: premium flower and premium oils.
Like most of you I am greatly disappointed with Fire's share price but I am looking forward to better days. One component that looks very promising is oils, 7Acres is selling KKE at around 75$ for a 30ml bottle (BC- AB- ON) each bottle requires close to 5g of product (4.8), wholesale price should be around 35$. They are getting 7$/g for oils. Product is in limited supply for both Jean-Guy and Sensi Star oils. And it is not available east of Ottawa! The company required a lot of product to produce these oils that could explain the limited revenue in the last quarter. That was a popular theme with most producers ... We need a lot of product for 2.0... 7Acres needed a lot of product for oils and other offerings coming in December.
That's my take on a miserable quarter! One thing we do have is great product and it will get us into the black. Canada has 260 licensed producers, most are micro companies, I think the pairing down has started, I would be very nervous investing in a new company. The next few quarters will be devastating for some and exciting for others.
Have a great weekend.
Leo the long.