Garbage Quarter - but decent measures takenWow - 9.1 mil is pretty garbage.
Doesn't explain if its just a sell through issue or what. But Im sure price is a problem.
1) Drop your prices - sell your weed. 42 mil in inventory now?? processing was where I thought it should be - demand wasn't.
Margins will shrink - but better to get that cash flow. 0.5mil in price reductions (future) recorded. cutting costs with the staff reductions helps make this possible.
2) outside sales force - seems like a strong move - desperate - but these are desperate times. their reach is good - 85% of retail outlets. and obviously fire didn't do enough to get sales.
3) get those products to market
- vapes - this Q sales march
- sugarleaf - new pre-roll and new cbd oil this q releasing.
- whole flower pre-rolls..... this q
THis is no longer a premium only company - looks like they are enetering the value side of sales - where the bigger growth will be. Thats a big transition - I think a necessary one.
They need to stay nimble this quarter - and just show some modest growth.
Once ontario starts opening up 20 stores a month in april - will turn the sector around.
I wanna say this stock is dead money for 3 months - but with product launches and a sector turnaround - you never know.