Post by
Wallhalla on Jun 18, 2019 2:56pm
Needs to be a business behind the brands to make sense
Its great that they were able to assemble a variety of established grey market brands, but there is no path to distribution (and therefore revenue and profit) without being a licensed producer who can grow and sell weed. The acquisition of Medcann is a good start, but they only have 10,000 square feet and nowhere near enough product to justify the current valuation. (They only got their license in March 2019 so I'm not sure they are even in any provincial stores yet.) The idea of signing up micro-growers is being done by many other LPs and requires a significant amount of capital under Health Canada's new rules, so no guarantee here. Only other potential revenue stream is through licensing deals, but there are so many brands that already have shelf-space that it makes no sense to pay for a licensing deal. This only makes sense when you need brand recognition to help sell product, a problem no LP is having right now.
Comment by
Corruptedlol on Jun 18, 2019 3:17pm
Southern Glazier is their distribution partner its on the deck
Comment by
Wallhalla on Jun 18, 2019 3:40pm
Sothern Glazier is just the sales rep. They can only sell what is produced by a licesned producer, which is currently the Medcann license producing out of 10,000 square feet. Only LPs can handle the product.
Comment by
MSWHoldings on Jun 18, 2019 5:31pm
THe company has far more products than simply flower produced by micro growers. There is CBD therapeutics, baked edibles etc. all with distribution through SG. All of that will fall under the licensing the medcann deal affords.
Comment by
knowSomething on Jun 19, 2019 11:01am
Well said - it’s all founder shares. Waiting to see how this plays out when it hits .30
Comment by
HawkII on Jun 19, 2019 5:47pm
Will likely stay below $0.30 for some time. So much cheap stock out there.
Comment by
hiheyhello on Jun 21, 2019 1:15pm
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