Aleafia Health Inc ALEAF

RE:RE:RE:RE:RE:It truly is a mystery...

[Toweringmars]

Well said.

I think once some of the smaller players start to fall by the wayside things will open up much further. As you've said, I personally know many people who buy from grey market and online sites. I think the actuall market here could be in the 5-8 billion arena, but most of it isnt tracked or reported for obvious reasons. When I try and convince them to switch over to the legal arena they cite price issues as the main concern, not quality. Which isnt all that odd as the average user will want more, whereas the occasional user will be the one opting for the high end strains.

I'm told people are getting ounces for $120, and tax-less. Which even the value brands from the likes of Hexo cant compete with that.

Its going to take ultra low cost producers to be able to make any sort of major dent in those markets. And I think we're well suited to do so. 

The real question now is how much controll to we actually have over prices. Can we come out and sell $4 grams? Is that a decent business plan? Or will other LP's see their market share trickling away and start a price war? 

As you say, time will tell. But as it stands i'd rather be here than in 98% of the other players. We've proven our capabilities and capital prudence. We've proven we can scale and sell product. The only thing 90% of the other players have proven was that they can make promises and then consistantly underdeliver.

[e-mail] wrote: Well...I disagree.   I don't think distribution is where the money is in the Cdn MJ market.   It is my opinon that the Cdn recreational market will over time convert to medical as Canadians will not want to pay for their weed if they can get a script from a doc and have their benefits cover the costs partially or completely.

The black market is not going down without a fight.  I've always held the position that medical is the play NOT recreational.  However, if a manufacturer and create and own a portfolio of 2.0 products (i.e. sublingual stips, edibles etc...) this might attract new user to the market.   I think current users (smokers) will continue to smoke their weed.   This implies the only way to grow the legal rec market is steal share from the black market and attract new users via 2.0 products.   Bottom line...Canada is too small to build a $2B+ market cap company...one must go abroad.

Time will tell who is right...but thank you for your response!

gf