Tinley team seems to be trickling out bits here and there to show investors some progress but it is almost like they have something really big going on behind the scenes secured by a non disclosure agreement. There are billions of dollars weighing in on a US greenrush launch and even the Canadian LPs and US MSOs are puzzyfootin' around as though Lil' Jeffie Sessions is lurking in the shadows with a big dog catching net to grab them up and take them to the pound.
Tinley screwed up their cajones and went to do business in California, content to rely on State law but others removed themselves from having their fingerprints in the US for fear of drawing Fed fire or losing their listings. That fear is still real and even the Canadian born world leader Canopy Growth is strategically inching their way into a market they can't afford to ignore through branding their products through US MSOs and takeover deals that will trigger when the politicians take the risk out of doing so.
If US politicians get it right when they do pull the trigger and eliminate all of the crossing borders with cannabinoid bullshyt that currently exists, it will be good for all trying to establish operations in the US. Tinley would benefit greatly with centralized production.
Interesting to see the amount of weight put into co-bottling fees which is good if it translates to shareholders wallets. It also spells out that our Becketts bottlers will benefit greatly from bottling our products. Historically, that is how companies got rapid exposure to markets to expand quickly into new territory.
Value added is where the money is and recipes and production capability, even if it is a co-bottler, is money in the bank. Keep in mind that sales should be good and so far profit margins are really good based on Canopy's efforts in Canada. Consumers are lining up because they like the concept of drinkable cannabinoids and are willing to pay a premium although this will level out as more and more competition make it to the marketplace. When you become the bread and butter in a co-bottler relationship you are always in the crosshairs of being a buy out or having your main bottler pull the rug out from under you.
My gut is telling me that there are really big things that are going to play out for Tinley and one of those confidential co-bottler deals could put Tinley in the take over situation.
So what does everybody think we are worth as a multiple of current shareprice? Remember the Sweetwater deal with Aphria came in at $330 million and it is starting to look like Tinley LB is up and running, Mars is moving the product out to retailers and dispensaries and the can and mini lines are in the works and the licensing seems to be all in place. Also, there's a shortage of cannabinoid licensed bottlers.
Canopy is counting heavily on beverages and showing serious intention for the US. They have already turfed one formulator and their beverages need work in Canada. If they can't come up with something better than what they have they will just buy somebody that has some good products. Maybe Tinley! glta and dyodd