RE:RE:Another sale / leaseback With the MSO either owning or leasing in each state, would the advantage not go to Canadian LPs with much larger capacities and distribution or shorter time and LESS CAPITAL to get to capacity? Also... Farmers to provide raw ingredients? How does that work for a brand of flower? Flower being arguably the largest piece of the pie.
Oldweed wrote:
I like the lease back approach and it could prove to be a very forward thinking as the industry matures. Being vertically integrated will likely remain relevant in some aspects of the medical market and some niche craft retail markets, but the real money will be made in national brands and CPG. That being said, once MJ can be shipped in and accross state lines the producers will be cost focused like all other commodities so CL likely has it sights on having farmers provide the raw ingredients. Selling the facilities today ensures maximum sale price for each facility, frees up cash, and increases CL's options further down the road to comoditize the MJ plant. This would certainly fall in line with CL's stated CPG approach to the market.