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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Bullboard Posts
Comment by N00bInvesT0Ron May 24, 2020 11:21am
288 Views
Post# 31066254

RE:My Prediction!!

RE:My Prediction!!If you take for Example Constellation Brands and Canopy Growth,

They have been partner for a long time, they even built a facility together just for the drinks.

No partnership is impossible but would anyone really want to enter late in the game based on FOMO. They will wait to see how the Canopy Constellations drink unfold to consider an entry.

I really think that unless the company is ready to risk to be the first mover (and that they can afford it ) they rather enter late then enter on FOMO to fail. Specially when it involves the amount of Cash Weed has been burning.

All the build up for drinks around the uncertainty  of Health Canada when it comes to regulation before they ended up releasing it (packaging, label, dosage) probably ended up costing them more money and forcing them to adapt and do many changes. 

All this for a small market (Canada) relative to what the big companies you refer to usually deal with (international market) . This is why also they have this deal with Acreage holdings that if cannabis becomes federally legal, Constellations will own them. They really want to be the first mover to dominate.

On top of that, Canopy will apparently be only profitable in 2021, so when it comes to a return on investment, unless USA and other countries unlock, that means they will need at least 5 years if not 10 to break even on their 5B$ USD cash injection.

All this to say that there will not be any big company that will purchase a canadian cannabis company because the time to do it was before, to be the first mover.

That's just my opinion, thanks for sharing also (if a deal happens, of course I wouldn't say no)

Cheers
Bullboard Posts