RE:RE:RE:RE:RE:RE:RE:Not doing it............ I don't know if they can be profitable in the next 2 quarters but Ontario is the only province that would bring them there in a short amount of time. Locally I can report the 30:30 oil has been sold out online pretty much since the day it arrived. Chatted with IR and Ontario has placed multiple orders already so it's not a delay from Nextleaf issue.
- I would anticipate Ontario's product offerings from Nextleaf to expand based on early rollout success so far.
- Last Q results ended in March. Nova Scotia was early rollout, Ontario hadn't happened yet.
- Not sure what's happening in Nova Scotia but the same Nextleaf vape offerings available at ~$34 in Ontario (full price including tax) and BC are listed at $45 on the NSLC. Whatever price advantage their technology gives them the provincial cartel ate it.
https://cannabis.mynslc.com/search-results?Keywords=glacial%20gold
- Personally I think capsuls will be a solid rev generator, particularly through Mendo as alot of medical patients/people don't like vaping and it's cleaner and easier than mixing oils into foods. There's also a pretty big grey areas with capsuls in Ontario. The province messed up the math so you cant buy more than 5 THC drinks even if they're only 2.5Mg THC, but you can buy almost an unlimited bag of 10mg THC capsules (sold 15 and 30caps per) and it adds almost nothing to your carts gram count (transactions capped at 30g).
Again, 12.5mg THC in a 5 drinks - Bad.
150mg THC in one capsule container - great, buy 10 bags, go to outter space.
- I asked for clarification on the sleep aid product they're developing and it will be through cannabis retailers, not pharma. Curious to see how that does.
- Also asked about the O-Acetate lineup. Supposedly this should fall under cannabis act and can be sold through retailers but still working with Canndelta/ Health Canada to have all the I's dotted and T's crossed on that front.
Overall I'd peg Ontario as the make or break. So far so good though, would like to see more skus available in the near future. Shneps is calling a raise, I still think they have a chance to go without by the skin of their teeth. Unless America opens up tomorrow, there's no need for a large raise to expand into any new ventures currently. Margins and sales are moving in the right directions at a pace where Opex becoming managable isn't a pipe dream like it is for other co's.
RyanB1234 wrote:
Looking at their balance sheet, it looks like they have ~2 quarters left without needing some sort of cash infusion.
You think they will be able to flip a profit in this timeframe?
curious to get your insight as I am seeing that they need to nearly double their their current quarterly revenue to flip a profit margin. Can Ontario bring that about with only 2 SKU's?
interested to get tryout thoughts on this Franks.