New Here, but i would like to make a point about cannabis2.0TLDR: All that surplus flower can be turned into vape oil with no experation date, revenue for 2020 could still be on track with Canabis 2.0
Vaping cannabis is huge in the US, and vape cartruges are filled with extract from trim, and old product that is past it's prime. HEXO is no doubt sitting on a heap of aging product, but if they have smart cultivators on their payroll, they would have skipped the fine manicuring stage on said product and got it dried and stored asap, thus saving on massive man hours of trimming, and getting a jump start on 2.0.
Extracts if done right can have an 8-12% yeald, and vape oil does not age at the rate that flower does. So the losses might not be as bad as everyone thinks. Vape oil sells for 5 times what flower does in the us.
With ontario opening up restrictions on storefronts, we may see other territories following suit as soon as Q2, thus providing a market for said oil.
Just look at the US: Colorado launched legal weed first, then Oregon, then Washington. Look back at news articles for those states the first year of launch, and you will see stark differences in how they all did due to different restrictions on different areas. Washington had too many stores and not enough product, oregon was about neutral (with a large black market) and colorado basically opened the flood gates and said let it be.... None of those 3 states have much of a black market now. People grow their own weed, and basically give it away come harvest season, but everyone goes to the shops for variety and consistency.
Food for thought. But we could be looking at no more than -20% of projected 2020 revenue come Q4