Lets talk shop So, the commercial kitchen is going into some of the old production facilities in Paris.
This is a great plan, as you can see that companies like Aurora have recently announced that they will be mothballing 5 different facilities while laying off 700 people. That is predominently because the economies of scale cannot be realized when operating in multiple locations. Instead of buying expensive facilities like most other companies did, to ultimitaly write them all down and likely sell them for pennies on the dollar, we came to the table with a bulletproof plan, and executed. Take for example titans of the industry like Apple, they source most of the components of their products from around the world. Imagine our margins when we can literally do it all. Our crown jewel Paris facility will be the extraction epicenter, along with the kitchen for edibles, and most importantly the packaging and distribution hub. A big thing some of the failed companies like Wayland eluded to, was that they couldnt even afford to package alot of the product they grew. They we're hand packaging and couldnt even get half of what they grew packaged. This is slowely turning into a CPG industry, (unless your simply a farmer) and alot of companies are struggling with this, as seen by co-packaging deals which scrimp alot of the top-line profit off the table. We're entierly verticle at this point.
By Geoff eluding to the fact the kitchens will be going into some of the old production rooms, I believe we'll be scaling down the indoor, and pushing for the hybrid / outdoor. This will bring down our already industry leading Cost Per Gram, and allow us to push out more high margin formats. Thats massive, and in large part, why they've earmarked 10 acres to strains to be sold as flower. We utilizing every peice to its full potential, and not wasting money on useless assets across the country, it will be centralized.
With relation to kin slips, I can see that playing right into the plan to capture more of the medicinal side of the market. I can see other healthcare professionals being more accepting of prescribing a sublingual strip than telling a patient to smoke.
Paris is the real deal, and frankly, this news of cash infusion couldnt come at a better time. Look around folks... Companies all across the globe are cutting jobs. Macy's cutting 3900 jobs. Westjet cutting 3300 jobs. Chuck e. cheese parent company filing for bankrupsy. Wirecard collapsing with 4 billion in debt. GNC filing for bankrupsy and closing 1200 stores. And these are just todays headlines. The crunch is coming, and those with looming debt are being wiped out. We are now one of the few companies with the cash to back up operations for the next wave and further.
And what do you think it does to the value of our shares as our direct competition starts to fall by the wayside? Anyone invested in speculative plays in this sector that dont have the bankroll to support themselves for the next wave will be sorely mistaken. And while unfortunate, we will benefit directly as the little fart plays dissapate. Companies like SUGR, AGRA, EVE, CHW... you get the picture, are all undercapitalized or raising capital at 52-week lows. OR raising debt at stupid interest rates. I wouldnt be suprised to see some of the mid sized plays start to wind down as well... The TGOD's and the ZENA's. And even some of the bigger fish like the HEXO's. All of which while terrible for shareholders, is great for us. But I digress.