GREY:SIXWF - Post by User
Comment by
throwaway11on Dec 15, 2021 5:03pm
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Post# 34234591
RE:RE:RE:RE:RE:RE:We are being teased right now. The Potential is Hugh.
RE:RE:RE:RE:RE:RE:We are being teased right now. The Potential is Hugh.Swiftracquet the best view from the client side I could find was from cannabis business forums. People seemed skeptical about the profit sharing business model and the cost of simply buying out Affinity machines. There was also criticism of the technology's potential, but from what I can see the company has since disproved those criticisms.
This is why I am skeptical of the revenue projections for affinity from Sixth Wave's original investor presentation. The underlying commodity will change in value if cannabis is federally legalized in America due to simple S&D economics. Meanwhile, biosynthesis promises to make cbd/cbg prices even more complicated. Since Sixth Wave's system produces a pure product - and anything made with affinity will be more likely to compete with products from biosynthesis.
To say it in plain english, cannabis producers/processors with affinity systems may not be able to compete with the price of products from biosynthesis, and so they may not simply target the ultra-pure product market at all. This is a complication that could ultimately affect Sixth Wave, unless Sixth Wave finds a way to work with a biosynthesis operation to apply or integrate affinity with their systems.
So counting all these factors, on top of the extraction space already being competitive, Sixth Wave may have to accept less profit from anticipated product prices and lower their ask of the profit margin in order to actually attract a lot of clients. Inquiries do not equal sales.
To be fair - the other side of the question I can see that from is that if the system still, in the longrun, ultimately makes the client more money than other systems even after the profit margin is shared with Sixth Wave, then that precedes everything - if they believe their half of the margin isn't generous enough, they may hold their nose at it and just continue anyway, because numbers talk.