Corona, rules and regulations and slow salesOGI just reported in that they suffered a downturn in sales, right after ACB that they have attributed to the stay home policies that are being recommended by pandemic experts.
When you are dealing with products that need special licensing, authority and approval to handle, formulate, distribute and sell at every turn and change of hands, it is complicated, if not almost impossible.
If that is what the big guys are telling us then I guess it is what it is! Normally in depressed times, consumers tend to buy into the vices more, I'm guessing, because they have more free time to consume and try new products. If your advertising and promotion is curtailed like our Tinley's and consumers can't get out to view and absorb the point of sale material that we have, that would be a contributing factor that bolsters the Corona reasoning.
I have repeatedly mentioned that there would be a huge consolidation of potpreneurs or disappearances of less than viable companies while the biggies with the most dollar raising ability and professional management will have their way with small desirable assetts and drive the others to bankruptcy. They will pick their bones clean.
I'm pretty sure I read that BEV is doing a beverage deal with Indiva and others are starting to make progressive moves to enter into beverage skus. As for me, I'm a believer.
Tinley has all the obstacles that the biggies have but still have a going concern in California which has to have eyes from Canopy. Tinley is also an International company too with the Becketts launch in Canada. Canopy seems to be putting down serious footprints on the East Coast, New York area with a 300k sq ft facility being refurbished for hemp and I'm guessing future THC products, when legally allowed. They have also locked up Acreage Holdings for their US debute using their Canopy label.
Most greenrush investors are banking on US decriminalization and rescheduling to a more formidable environment that will, hopefully give access to normal business tools like banking, brokering and all of the other enabling things that have scared some US investors away and is keeping Canadian companies from barging into the US.
There will be winners and losers and I still anticipate a 95% attrition rate for potpreneurs as it is shaping up to be a big guy game.
That is not to say that I don't expect a huge money-making opportunity for brave investors with some form of US legalization. You need to pick big and well financed or a niche company building professionally managed companies like Tinley. glta and dyodd