Toweringmars wrote: Welcome to a special Sthinei Day edition of toilet reads with Towerings. In today’s rant, I’d like to go over the harvest and new brands. Let’s dive in shall we?
Taking a look back to the initial harvest results. Their costs-to-harvest per gram is 0.10. On 31,200 kg's (31,200,000 grams) means our entire cost including labour, consumables, services and staff overhead is $3.12 million.
Thats not including the likely 15,000 - 25,000 kgs of extractable biomass we got from it.
I mean, aside from the obvious margins with regards to Kinslips, on a purely wholesale basis this is an insane return. Pair that with the recent launch of new formats which we’ll get into later, and this is a lovely “problem” to have. Low cost high yield with more than enough input material to feed our “crown jewel” at Paris. Beauty.
Assuming we sell all the flower at wholesale costs at an average of $2.50 (Our per gram sold average fluctuated on wholesale last year) Then we're looking at an investment of 3.12m for a return of 78m.
Bit of a no brainer. Granted we had some permitting issues this year and the fact that we're in a global pandemic affected the outcomes a little (cost reductions from university students, less cost in shipping etc) The company also eludes to the fact that we've build the irrigation for the full 86 acres with a capacity to support 86,000 plants (vs the 50,000 we did this year). Hint hint. It gives us a great transition year in the scaling process, to eventually move towards full capacity.
Moving on to the new formats, the last release mentions premium concentrates coming out of Paris. I assume this is our oils and vape cartridges (which are top notch might I add), but if they came out with shatters and waxes I would be ecstatic (I’m too much of a lightweight for those formats these days but I know they sell quite well with the heavy use crowd, and those are the guys putting in big recurring orders). With them mentioning first products coming out Q2 I feel like it’s the latter with the high potency products, seeing as those formats are already in market.
Our soft chews launch Q1 (so anytime now) and the company also eludes to new products not seen in Canada yet. Having more that differentiates us from the heard is never a bad thing, so that’s exciting.
The Divvy brand will feature pre rolls (which I think we have two fully automated lines hammering these out), and “affordable” formats of our already in market products. They also elude to larger format SKU’s, which I think is necessary to have for the recurring “frequent” users who are hunting good prices, as well as some of the provincial orders that require specific sized SKU’s (I remember Canopy saying they lost out on sales to the OCS because they didn’t offer certain sizes) so that’s another plus.
Noon & Night is our foray into the CBD wellness market. I like that we flexed our second mover strategy on this as I don’t believe the general public was ready for the wide adoption of CBD. Several years of recreation in Canada, and the shift in sentiment in the US have given both the consumer and medical professionals time to see the full effect and benefits of CBD. That said, the CPG market for CBD is truly massive. Everything from creams, make-up, health and wellness to the food industry, I think we’re going to see an even bigger appetite for these products in the coming months. The thing people discount about CBD often is that it too has measurable potency. It’s been said in many an article before that companies that buy CBD flower wholesale will often pay a big premium for good quality high potency flower, after all it cuts their extraction time in half if they only need to extract a certain amount per batch rather than use 2x the input material. I know a few people were a litttle puzzled when they found out the ratio of THC to CBD we grew last year, but I don’t think that was a mistake at all. I mean, after all we’re after the dollars right? If the company makes more with CBD than THC then by all means, grow grow grow.
All of that to say I hope you enjoyed this special edition of toilet reads with Towerings and think that were perfectly positioned to reap massive rewards in the coming quarters
That is all. Please return to your loved ones as they’re probably wondering where you went.
Ah Long!!!