Nextleaf Solutions Ltd C.OILS

Only part worth reading.

[LastoftheFranks]

Nextleaf sets monthly record for kilos sold to licensed manufacturing partners

During the month of June 2022, Nextleaf sold more than 100 kilograms of high-purity distilled THC and CBD ingredients to long-term and new partners. The Company onboarded five new partners during the month. Cannabis distillate produced by Nextleaf's ingredient processing technology will power more than 15 brands throughout the Canadian market this summer.

As producers throughout the industry right-size and look for additional efficiencies in their business, many are choosing to outsource their extraction and distillate supply.

[stealthct]

and then recession hits hard in 2023 - 2024.  600k+ job losses in Canada....can't avoid that imo. 

[Buyhigheatchips]

Yeah, that was a much appreciated note!  Question: Did the large LPs get their SKUs approved to sell across the country in dribs and drabs like we're going through? Or is it bc we're still a small name or...? 

[LastoftheFranks]

Ontario/OCS has been a sh*t show but just appointed it's new interim CEO as permanent CEO. David Lobo was the 6th CEO in 3 yrs. Hopefully this brings some stability to product offerings and long term operations.  Quebec is a cartel (expected). Same with Nova Scotia.  Based on previous disclosures at least 1-2 clients are national brands (assuming more). Taking a % of every sale

[Adventurous]

I am told O-Acetate is a filler ingredient that could cut the legs of all competition, including the black market. The real thing. I understand some advisors, etc. are all giving clear signs this is tax-free indeed. Now, to commerciallize it, provincial suppliers need to share this understanding. Typically, governments say when something is taxable, not when it is not taxable. Odd conundrum

[LastoftheFranks]

There is nobody who hopes more than me that they can pull off some magic with this no tax thing. Unfortunately I'm almost entirely certain the gov't will figure out a way to tax it at a similar rate to the current vape products. I'll even give you a preview of the conversation at the gov't.  Govt: What is it? HC: It's a filler that goes into vapes that is slightly

[Adventurous]

Of course, if you want to be pessimistic, in the long run we are all dead (dixit Keynes). But we are talking here of legislation which need to be approved in government, involving several departments, confusing political wills, etc. It could take years to be declared taxable (if ever), certainly not retroactively and most certainly not before the feet-dragging Cannabis Table concludes on anything

[AuroraAurora]

Take this all with a grain of salt as I am using very old data from the legacy market, but I'm trying to find info on price per KG of wholesale distillate in Canada. It's old info, but I see that back in 2009, the United Nations Office on Drugs and Crime noted that wholesale of cannabis oil had cost $5,801-11,603 USD per kilogram. If we assume that the legal market now sells at 1/2 that

[Adventurous]

What is especially cool is that they produced all that cannabis oil, Glacier Gold products for almost the whole country, the new O-Acetate sample, the new vape they announced today - all this in the last few weeks using the same light-weight machine and reduced staff they have. Hats off. To me it is not true that the company's real value is 40% more today than it was yesterday, as the share

[LastoftheFranks]

Aurora this is the most recent public article I can find listing the cost of Canadian distillate per kg (End 2021). Basically nose dived last year but alot of that may have been capitulation from outfits no longer in the extract business.    Similar declines were seen in the extracts market. Although wholesale prices started off strong in early 2021, at around $7,500/kg, prices

[AuroraAurora]

Oh wow so my calculation is actually fairly accurate. If the price per kg of distillate is 2,500 to around 4,000 then my USD estimate of 250,000 seems in the right ballpark. It would be 250 k - 400 k CDN though vs. Good for a month of B2B.

[LastoftheFranks]

Those are great monthly numbers. MoM bulk sales are inconsistent but if they can average $150k-300k per month they'll be in a good position with expanding provincial sales. 

[Adventurous]

Also, when you have several companies competing for market share, prices go down while they typically overproduce and keep oil in stock over a longer period. If Nextleaf is now producing only the oil the market needs, at the lowest possible maket price, there is much less overproduction and price will normally stabilize or even go up. Better still, after more competition is eliminated, Nextleaf