Delta 9 Cannabis Inc DLTNF

D9 Financial Call today

[gnote1]

Looks like Q2 and beyond will be positive growth.

$20 million dollar  revenue quarters coming our way

More retail stores, Sask and Calgary, Lethbridge being a focus

B2B sales improvements second half of 2022

Looking at more distribution contracts in Canada, Quebec focus.

International distribution with Israel, Australia ...

A great year ahead!

[StonksOnlyGoUp]

I hope you're right about revenue rebouding, but the drop in this quarter makes me wonder if the extreme housing costs, gas prices, and general inflation are curbing miscellaenous weed expenditures.  I know Q1 usually isn't the strongest so lets hope it's jst that but I wouldn't be surprised if we don't quite hit the 100mil aannual rev mark this year given all that's

[gnote1]

You might be correct with inflationary pressure and disposable income going in a different direction.   During the great depression, i remember reading that liquor sales were still high compared to other groups.  Sadly or not, people need to escape during high stressful times.

[golfyeti]

Revenue will certainly rebound in the next quarter because it will include for the first time revenues from the Uncle Sam stores (and additional DN stores).  None of the revenues from that acquisition has been included in financials yet.  After some thought, perhaps not by end of this Q4, but certainly within four quarters I forecast $24- $25 M in quarterly revenues, ie $100M/yr revenue

[StonksOnlyGoUp]

For revenues will increase with Uncle Sam's,perhaps just not to the target we're all hoping for in the short term.  Also could delay profitabilty depeding on the cost to run vs revenue. I definitely agree though that within a year we'll likely be there. 

[golfyeti]

Look up the definition of accretive to earnings.  John said the acquisition would be accretive in 2022 and 2023

[Northboy44]

Would be nice to see some other interest in DN  other then a few of us old diehards..

[golfyeti]

New investor interest will come once we hit certain milestones.  Then Delta 9 (DN) starts emerging on stock screening lists.  $100 Million/yr revenue run rate will be one milestone and multi-million dollar positive EBITA will be the other.  Then DN's impressive size, amazing growth rate and rare profitability will simply become too glaring to ignore.  We're not there

[StonksOnlyGoUp]

Come now, no need to get catty.  I know what John said so instead of pointlessly looking up basic terminology as you suggest, I'll continue to add to the conversation and direct your attention to a statement in the quarterly financials: Disclaimer for Forward-Looking Information Certain statements in this release are forward-looking statements, which reflect the expectations of

[golfyeti]

John said ebitda accretive so that is all I need to know for now about whether this was a good deal.  DN just locked-in their debt costs at super low rates so I am not concerned with market rates rising.  Pod sales appear to have fallen off the map so revenues over the last handful of quarters include no  big lumps of revenues that pods can bring.  I really won't care if

[StonksOnlyGoUp]

To be clear, I never suggested it wasn't a good deal (certainly the price paid was way cheaper than anyother stores DN has aquired to date), nor am I suggesting DN doesn't have a bright future.  I am simply suggesting it is possible that it takes longer to get there if last quarters results are largely a result of current inflationary pressures and that trend continues throughout the

[golfyeti]

Cool.  And lest we forget that DN sells an addictive product.  Speaking personally, in an inflationary or recessionary world, I will be scaling back spending or many, many things before I scale back on premium bud!  JUst the opposite! LOL  Like alcohol its a pretty steady business even in tough times.

[CAinPlap]

I thought cannabis was non-addictive?

[golfyeti]

Its true that its not very addictive like many other drugs.  In my experience with cannabis (40+ years as a daily consumer) the drug is not physically addictive like cocaine or opioids (or even alcohol and caffeine)  but rather cannabis is more psycologically addictive.  The favorable and immediate change in your mood and outlook is addictive.  I both drink and toke -- they