The difference between competent, responsiblemanagement - and Hexo.
How can Hexo justify paying for these Canadian greenhouse oeprations
Newstrike $298 million write off
Zena $ 255 million
48North $50 million
Redecan $ 1billion
Colorado warehouse $75 million in renovations
while US MSO Columbia Care pays $42. million for a cannabis operation in NY State - a market bigger than all of Canada that legalized cannabis.
Seriously? Hexo paid $50 million for 48North? Oh my.
Another MSO, Columbia Care Inc. (CCHW), lost four cents to $4.93 on 280,000 shares. It has received regulatory approval in New York to start cultivation and processing operations at its massive new facility in Long Island. The site spans 34 acres -- about the size of the Pentagon -- and was acquired by Columbia Care in April for $42.5-million in cash and shares. Chief executive officer Nicholas Vita boasted at the time that the site is one of the largest on the East Coast and would essentially double the company's entire U.S. cultivation footprint. "This is a commitment," he declared, "... that we are here [in New York] for the long term and intend to be the leaders who define cannabis in New York State."
Mr. Vita was in equally cheerful spirits this morning, noting that Columbia Care is preparing for its initial harvest from the facility in the fourth quarter (meaning the coming days and weeks). "This is an incredible time for the state's cannabis program," he said, adding that "we will be ready with our scaled and vertically integrated operations." Columbia Care currently has four dispensaries across the state. As an incumbent medical operator, it will enjoy advantages once New York launches recreational sales, though this is seen as unlikely until at least 2023. In the meantime, the new Long Island facility should provide ample capacity for Columbia Care to supply its four dispensaries and participate in the wholesale market.