Aphria Inc. APHA

Could Canopy be buying from us?

[gottahunch]

https://www.reddit.com/r/TheCannalysts/comments/jb1d30/the_path_to_the_future_is_derived_from_the_past/

From Reddit Post:
Canopy is presently buying third party cannabis and looking for more. How much has not been disclosed.

From comments in post:

You mentioned that Canopy is buying third party cannabis and looking for more. Are their operations so bad that’s it’s cheaper for them to buy wholesale and sell it as their own?

Here’s my thinking with nothing to back it up. I’ve been seeing reviews on Canopy’s weed and people are saying that lately it’s been getting better. Maybe they’re buying from Aphria and since they’re seeing how well it’s working they thought “why not buy the whole company instead of just their weed?”

I hope this is true cause that would mean Aphria got their wholesale numbers up which would be great news for tomorrow

• permalink
• embed
• save
• report
• give award
• reply

 

 

[–]GoBlueCdncash cows to feed the pigs[S] 2 points

32 minutes ago  

Ha. I mentioned CGC becoming a APHA client on twitter the other day. Semi jokingly.

If the quality in their vault is saleable they would draw from there first.

I have heard on several occasions they are hunting for +20% thc and +2% terps in high $3/gram range.

I am dying for an analyst to ask them if they are buying third party and how much.

And I have too noticed that their flower reviews are improving.

GoBlue

• permalink
• embed
• save
• parent
• report
• give award
• reply

 

 

[–]dunkers0811 1 point

23 minutes ago  

APHA mentioned in their last MD&A that they were planning to sell a lot more wholesale to other companies and it would account for more of their revenue moving forward.

From Aphria MD&A:
Wholesale and Other Sales Channels The focus on the right strain assortment, quality of flower, extraction capabilities and processing enables Aphria to drive wholesale channel opportunities for revenue growth. Aphria already completed several sales through its wholesale strategy, and will continue to do so by building partnerships in the industry. Recent changes in the Canadian market resulted in more competitors moving towards an asset light model through the rationalization of cultivation facilities. As this transition occurs, the Company anticipates demand for its saleable flower to increase, providing new opportunities in the wholesale channel. The Company will expand its capabilities outside of saleable flower, as its quality of extraction processes continue to grow into new categories pacing with the consumption of new cannabis derivative products (also known as Cannabis 2.0) categories. Aphria will be selective on its partners, with the intent to secure supply agreements to further optimize and drive efficiency within its supply chain and operations.

Companies moving towards rationalization. Sure sounds like LP's like Canopy closing factories. Given we are such a low cost producer, it would be one way to clear inventory.