RE:RE:RE:RE:RE:With all of Else's productsThe market reacted to the news by bringing Else's stock up to 0.70CAD for about 5 minutes.
The market then reacted to what the news actually means by bringing Else's stock back down to earth.
Else will not make a significant amount of money from this deal. Danone is in the driver's seat for now. Danone will NOT buy Else until Else can show sales of >100M/yr with sales/revenue growth over 100%/yr for at least 2-3 years.
Remember the old expression..."Why buy the cow when you can get the milk for (almost) free?"
Danone not buying Else is a GOOD thing for investors like us who buy at these levels and "HODL" with our "diamond hands" to use some of the expressions of the kids these days. We do not WANT Danone to buy Else today for 0.45CAD... we want Danone to buy Else for 5.00CAD in 2027 or 2028.
What Else does get out of this is some high margin recurring revenue which can be used to fund some of their operations and/or the cost of the baby formula study for the FDA. They also get some "goodwill" when they pitch their products to retailers to try to get on their shelves. Additionally, when the baby formula is approved, they have an existing relationship with one of the leading global players in the industry.
This deal with Danone is not about what Else gets today... it is part of a longer term strategy that could take years to play out. Are you willing to wait 3 - 5 years to get your 10-bagger? That is a CAGR of over 75%. I'll be patient and trust the management to do their job without interference from the peanut gallery...