RE:RE:RE:RE:RE:RE:RE:RE:MonographComment made from last CC, we invested millions in our business. 2 take aways from that for me.
1) When any growing company enters their hyper growth phase, where things really start to take off, it is usually a period where the company is burning through a lot of cash to support that hypergrowth phase. Making that comment at the most recent CC caught my attention because of the relationship between fast growth and the need to invest more cash into the business.
2) Part of those millions invested in the business is also the VIVO acquisition. But for this post I am looking at the VIVO deal while wearing my pharmaceutical API glasses. For a company like LABS supplying pharmaceutical API's, the most critical part of that is having a financially stable, reliable, and an approved source for my raw materials to avoid shortages, disruptions, and raw material quality issues. So the VIVO deal to me was bringing that critical part of the API business under one roof where you can also have full control of the growing and harvesting of speciality hybrid strains. Nothing worse than your main supplier holding you over a barrel intentionally or unintentionally and the VIVO deal deleveraged that risk to LABS. Transfer costs between your grow operations and extraction operations keep all profits in house now as well (VIVO now being part of LABS no longer has 'profit margins'...it's part of LABS)
I'd love to know if Barrie is purchasing esther compounds. Then you don't have to buy more extraction equipment or expand your brick and mortar operations...acid form of cannabionid API's.
Can you imagine how that melts away your fixed costs per gram of extract you produce and what it does to improve your profit margins. It's logarithmic, by 2 orders of magnitude, as in over 500 times more potent.