Concerns with NBI agree with the inaugural shipment being great news. Revenue is always good! I am also pleased to hear of a second provincial agreement. SPR is executing and growth is good! However, there are a few concerns to be noted.
What is the amount of flower being purchased by ALGC and how much can we supply with sustainability. This would obviously require the factoring of sales on the retail level. However, a best case scenario at full sale capacity is a nice number to know for the max potential revenue.
The second provincial agreement. I would like to understand the rational for choosing NB as the second provincial agreement other than stated “strategic point of entry.”. A few weeks ago, CNB announced that they are looking to sell all government operated cannabis retail outlets to the private sector. This sale was anticipated before January 10th for as a result of no sale would force CNB to close the shops. See link below.
Perhaps a quick sale to the province is a done deal and if they close they close and THR has logged/made the sale. However nice the sale is to make with the province, it is at the retail level where customer awareness occurs and consumer base established. I am not sure a sell and run to NB would be beneficial to SPR in the long term. But then again, perhaps they are strategically making the quick sale while the getting is good and the province is still buying in order to create some customer awareness of SPR products prior to releasing any edibles in that region. It was mentioned that the role out may occur where MH is better known and established.
Regardless of the strategy and no movement expected in SP, this is good news. SPR has finally established an independent source of revenue. Looking forward to the inevitability of future provincial agreements and other future endeavours! GLTA :-)