A few red flagsHi guys, I've been doing a bit of research and I've come up with a few red flags for myself concerning VLNS. Maybe not the company itself, but the sector and other companies doing business with VLNS.
TGOD - Has a 30 000KG contract with Valens for the first year and more on the second year, and a 46 000KG contract with Neptune for the first year. But they recently anounced that their prod will only be about 20 000KG in 2020...
HEXO - Recently fired some employees and closed productions of greenhouses. Have a 30 000KG first year and 50 000KG second year contract with Valens. They will be running at around 80 000KG per year runrate...
OGI - Doing very bad...
Others - The demand is not there on the market, weither it's lack of stores or simply overpricing...
Beverages and others - Beverages not being sold in bars, grocery stores (for example in Quebec they will be only sold in SQDC, so only 40 shops in the province), vapes are banned for now in a little less then half of Canada... Edibles have a 10mg limit... I'm sorry but I just don't see the demand at this point... Maybe it will come, but it's a big speculation at this point...
The industry now has so many players, yet the KG sold are tiny compared to production...
Maybe Valens will do good, but i'll be back in the future for sure. Just for now with the market at ATH, and weed companies doing awfull... I don't know, my numbers now don't add up...
Do your own research and GOOD LUCK TO ALL
I would like to have some opinions on this !
I'm just being realistic here and I still love this company !
TBM