Five Years Away: The Coca Cola of Cannabis Okay, so I was thinking about Nextleaf and the future, and wanted to share my thoughts. They aren't a guarantee that this will happen, but this seems like the company's vision, and I think there's a good chance of it happening - otherwise I wouldn't be so heavily invested.
To begin, the Canadian cannabis market is small, there are few people in Canada relative to many other countries which limits the market size. However, there is still a market to be had. With Valens and MediPharm floundering with extraction because the margins aren't high enough. I think Nextleaf will long-term be The (capital T The) extraction play in Canada. While this should bring in good coin down the road as Nextleaf becomes the preferred and profitable extractor, and they'll do well in Canada. This is a small sandbox though.
As it becomes apparent and known that Nextleaf is the only extractor in Canada to be able to produce high quality extract under price compression, the IP licensing will kick in, with extraction labs in different countries around the world paying Nextleaf a pretty penny, to use our proprietary technology and to have a monopoly on the lowest cost oil in their country. This will reinforce the reality that Nextleaf's model is the most efficient and feasible model for extraction. Nextleaf will be able to charge more for their IP as this unfolds in different countries. Nextleaf will become very desirable for CPG and Pharma companies.
In 5 years, I am guessing that Nextleaf will be the Coca Cola of oil and either (a) be a multi-billion dollar company, or (b) be bought out by big pharma with a poison pill being enacted to let us but more shares.
This is a longer term (5 year vision). However, in the meantime and in the next couple years, I fully expect to see shareprice progression. All those employees wouldn't not have accepted shared versus cash if they didn't think they'd be worthwhile and in the near future. For now it is about those deals. Long-term it is about licensing of IP.
Everyone is free to agree or disagree as they please, but this is what I anticipate happening.