Post by
igstar on Nov 15, 2020 7:18am
Calgary Herald Article today - chocolate deal
The most important comments in the article - which is exactly what I stated here last week, is that almost no producer is capabable of producing high THC Cannabis - except Sundial.
This is what people are missing - the article is very clear about it - its very easy to grow pot - its very tough to grow good high quality pot!
The facility the Sundial has is the best in the business. Its why there products are in such high demand in Ontario - with almost no advertising or promotion. Having a massive warehouse, or greenhouse - lots of written off inventory is all they produce.
Having the strains that they own - huge advantage.
But the stock is too cheap - the management to poor - for the company to exist long. Tilray and Cronos are the most likely acquirors - the have the market cap, and market savy to change their company. What they don't have is any meanigful quality production - they have been getting their pot from Sundial for sometime now.
Its a unique situation I have rarely seen - they can buy Sundial and become a market leader, or they will fail and go out of business. Selling low THC does not work. The company that buys Sundial will become a world class leader .... because starting from scratch,without the inventory of strains Sundial has, and facility and licenses ... takes years.
Even Sundial in their early stages grew lots of pot they threw away - growing high quality THC is really really tough.
We'll see where the bidding starts, and those missing out, ,the beginning of their failure