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Nextleaf Solutions Ltd C.OILS

Alternate Symbol(s):  OILFF

Nextleaf Solutions Ltd. is a cannabis processor with a portfolio of federally regulated emerging consumer brands, market validated cannabis derivative products, and high-potency bulk ingredients. The Company’s multi-patented, highly automated, closed loop extraction, and distillation technology sets the global standard for processing cannabis at scale. The Company manufactures over 80 different products, across four categories for white label clients and house brands. It manufactures and distributes cannabis vapes and oils under multiple brands including its brand, Glacial Gold, and the High Plains brand. The Company sells its branded cannabinoid vapes, oils, and soft gels to the British Columbia Liquor Distribution Branch (BCLDB), Ontario Cannabis Store (OCS), Nova Scotia Liquor Commission (NSLC), Manitoba Liquor & Lotteries (MBLL) National Cannabis Distribution in Saskatchewan, and across Canada through multiple medical platforms, select pharmacies, and a distribution agreement.


CSE:OILS - Post by User

Comment by LastoftheFrankson Jan 20, 2021 11:23am
141 Views
Post# 32333706

RE:Valens

RE:Valens

I mentioned this a few months back on here. The issue with CO2 is speed. 'Croptober" savings weren't going to show up on Valens balance sheet until late Q1/Q2 due to the biomass they had already acquired which at the time was great prices and by the end was grossly overvalued. 

The oil glut is in premium priced products and price collapse has happened so rapidly that formerly middle road products are now considered premium priced. If Valens liquidate they eat the loss and start from a better value offering. If they didn't they'd of produced products at a collapsing margin/loss for months before getting to their croptober purchase which would've become less of a value proposition as price continues to collapse. 

Nextleaf's ability to process bulk qualtities at speed is a grossly undervalued feature buffering them from such issues. Cannabis is a commodity.  

Partheniou says that input prices might go lower with the harvest of outdoor crops and adds, “we envision VLNS benefitting from this years’ outdoor harvest through higher margins. Nevertheless, this may take some time to flow through the company’s P&L as it works through its roughly ~6 months of inventory.”

https://thedeepdive.ca/valens-analysts-reiterate-price-targets-ratings-following-q3-results/
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