Inner Spirit Holdings Ltd. INSHF

FAF annuals

[Toweringmars]

Nice to see FAF generate 51.1m for the year. But even so, lost 32.594m in doing it.

Whats interesting to note, is that they're already restructuring to close stores in Alberta.

"Fire & Flower has implemented a restructuring plan focused on optimizing the Company's retail footprint by focusing on stores that are accretive to the business. This plan will close three locations in Alberta and will allow the Company to deploy resources and licence cap allocation to locations with higher profit potential."

Its nice that they have Couche Tard in their corner, but the books aint lookin' so good if you ask me. I wouldnt be suprised to see CT pull the same move Constallations Brands did and put one of their guys at the helm. (Even though the current one was just elected to the chaimber of commerce board to represent cannabis retailers in Canada).

Growth is only good if its sustainable, and judging by the adjusted EBITDA they're just barely improving.

[mtd121215]

I think it is more likely that FAF is bought buy canopy as Mettrum was as well. Same CEO who lead Mettrum now leads FAF.  Regulation will change

[thetigerking]

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[Toweringmars]

  I doubt that, but everythings possible.  FAF is protected by the deal they have with CT. Aint no LP looking to buy a company that they'll never own 50% of. (Should CT exercise its warrants). Canopy is doing everything in its power to downsize and become profitable. The current regulations in Canada (as we all know) dont allow for more than 24.99% ownership. So they'd be

[mtd121215]

I think the time horizon for regulatory change is much shorter. The current regulations are not maximizing the tax dollars that the government will be lookign for during/after this pandemic. Especially as the U.S. is in an election year where if the dems win we will see a real push for cannabsi legalization at a federal level. This would inevitably change the regulatory environment of the industry

[iamronmexico]

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[Toweringmars]

Define grow... It allows the company to grow the 'brand' by opening more stores. The corporate owned route will 'grow' much faster once anyone becomes revenue positive. By contrast, we only receive 5% top line revenue from franchises. So we'll need 20 franchise stores to equal 1 corporate store, to earn that same ammount of money (once they're generating it positively)

[Jessa7]

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[iamronmexico]

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[NOfREedom]

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[Jessa7]

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[iamronmexico]

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[Toweringmars]

  Not sure I follow you guys, and I could be off so would appreciate the correction. But 5% of gross sales (the other 1% for advertizing fund is likely restricted capital that can only be used for marketing, so likely cant be reported in Cash On Hand). So let say a franchisee (on average) pulls in 1m per quarter (easy roundable number). 5% of 1m is 50k. While a corporately owned store would

[Jessa7]

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[Toweringmars]

You and Cudjo bring up good points on the regulatory side for the US. It is true, they will want to get as much of that tax money as possible. So I stand corrected. Now, the tough question will be, can ISH compete in a market owned by the likes of Trulieve and Curaleaf who already own the entire supply chain? Its possible they can get franchisee's to adopt the brand and open, I do think