RE:RE:Grapefruit USA 60-90 day wait? boooo! I want to know who...
Hi Lily2021!
The first time I heard about Grapefruit was regarding their now trademarked CBD item, a time release CBD cream. This makes me think of the improvements that nicotine patches have made over the years. Time release cream CBD cream imo would be an awesome product addition.
- No Canadian LP can ship to the USA and it's unlikely to happen (think tarrifs, dairy, softwood)
- As per a Verano exec without proper agreements across States, to sell in a specific state one needs to grow in said state.
- Grapefruit is based in California and has full agreements in place to produce and sell. Cali being something like the worlds 5th or 6th largest GDP
-Grapefruit holds an agreement with a company called Zylo which apparently provides them the coveted access to all legalized States thus bypassing the State growing requirements.
- They have a full product range, flower, oils, edibles. We could send seeds down there and implement existing grow practices if deemed superior.
Mostly speculation based on small things. Like why the first cash raise? Ok money in the bank is a good thing but if we didn't need it why not wait for another ER to go out and show further increased recreational market share? That would most likely have meant getting more money from the raise for the same amount of shares. OK, the first one may be for rainy day funds and for the time being, strengthen the balance sheet. The second one a couple of weeks after with bought financing at 50% higher? $0.19 vs $0.31 - That confuses me big time. Something is up, has to be. They wouldn't have been able to release the earning sooner to BMO if I understand correctly however they could via non-disclosure tell them of the conversations taking place. So seeing that Grapefruit USA Inc received a time released CBD trademark coupled with their news release February 12 (our ER date) about being approached by a Canadian company and not wanting it to leak, coupled with Supremes second bought financing and now Grapefruits recent announcement on the 1st of March saying this may not be an aquisition but instead a Joint Venture and the Canadian company will have exclusive rights to make, market, and distribute in Canada for the first 6 months caught my eye. This so seams like a Beena product. Would go great with either Truverra or BlissCo. Supreme did imply that they are looking at things and want to be ready to do something if they can... If the talks started to falter it may have been over purcahse price? I am not sure what Grapefruit would want or how much cash is required to make this happen but looking at their outstanding shares coupled with share price/history guessing 55-60 million should get it done. The only other company I can think of would be Cronos or Aphria. I do not see Cronos caring about CBD cream in Canada and similar with Aphria. They both want in America and are sitting on cash. Neither would have an issue meeting the requested price if they were interested nor do I see Cronos nor Aphria wanting to be in a JV with a company. They want in America not a JV that comes with the rights to sell a CBD cream in Canada. Supreme I can see saying ok to a JV and gaining access to this cream while continuing to focus on the Canadian market. (which is what they said, focus on Canadian market is the priority). And now the new ATM news? So I am thinking that they were off in purchase price which brought us to the JV and cream distribution, now Supreme next day spends it talking amongst themselves and decided against the JV and instead today decided to tru and push through with an aquisition. Speculation at its finest! Grapefruit though has confirmed they have been approached and confirmed its now looking like a JV and here we are... We are in a good spot for this aquisition.