Inner Spirit Holdings Ltd. INSHF

RE:RE:Everyone is talking store count... like it matters

[mtd121215]

A) The cap doesn't create less competition because there could be hundreds of companies trying to reach 75 stores. The cap limits a companies ability to get ahead of another company by store count which make the entire sector un-competitive.

B) The cost per gram is the cash cost, not the All In Production cost. Don't be misinformed or worse fooled. When the consumer goes to the store they pay on average $10-$15 per gram including excise tax. 

C) The market share that retail stores will capture compared to online platforms and even bigger players yet to enter the cannabis space will be underwhleming. The numbers we see now are a reflection of a pandemic not a representation of natural market conditions. 

Most of your arguments are the same "hopes" that most investors in this space are holding onto as they contiue to lose money. The cannabis space is saturated and multipe years of consolidation will take place before we see the real winners emerge. These winners will be well capitalized companies that are stockpiling licenses or even larger liquor and tobacoo players. 

I suspect that in 5 years time, not one of the cannabis retailers will exist. Watch Loblaw, Alimentation, Molson and others to dominate this space. The only company I see with any light at the end of the tunnel is Fire/Flower as the street is behind this company. CEO of Fire and Flower use to run Mettrum Health before it was acquired by Canopy. What do you think will happen with Fire and Flower next. Government reguations are going to continue to change and adapt to this growing industry but don't think for a second that all these little start up companies are going to be successful at all. They are burning through piles of cash and constantly needing more. 

The retail cannabis space is the worst sector of the cannabis industry to put any money to work.