Post by
Adventurous on Nov 23, 2023 5:19pm
Bear in Mind: Nextleaf is a Two-Prongs Business
A formidable strategic opportunity for Nextleaf is to capitalize on the fact it is a two-prongs business: lab expertise + successful marketer. The distinction is already somewhere in the structure of the company, kind of ready to go.
Could Nextleaf formalize the split for the stock market to better understand its value? Two great stories instead of a murky one could easily double the value of the company, facilitate financing, etc.
Could Nextleaf merge or sell one of the two entities, either with a big pharma or a cannabis producer? Again, a great way to monetize a component in order to bring the other one to full bloom.
At this juncture, the question is key.
Otherwise, whatever takeover bid we receive is sure to undervalue the company. The first thing the new owner will do is to sell the component they don't care about, and keep the one they want FOR FREE.
What Nextleaf is missing right now is not marketing know-how (thanks to the new CEO), it is strategic thinking. A poison pill is defensive, not strategically proactive.