Post by
thetis88 on Aug 21, 2018 11:03am
Questions on Canada
1- I read that total producion facilites in place or being constructed in Canada will produce about 4 million KG of cannabis by the end of 2019. This number does not include the hundreds of applications waiting approval to build more greenhouses and buildings. Nor does it include black market supply, or home grown supply. Demand on the other hand is estimated to be about 800,000 KG to 1.2 million KG. . There seems to be a 4 to 1 ratio of supply to demand coming up at the end of 2019. . Is this right???? Will wholesale prices plummet?
2 Oregon has also issued unlimited licences, like Canada., There, prices have fallen from around 1900 dollars a pound to what I read yesterday of 300 dollars a pound.The article could have been wrong and these prices should be checked out. But , if correct , 300 US dollars a pound is about 1,100 Cdn dollars a kilo or 1,10 cents a gram. How can any facility make money on that wholesale price of 1.10 cents a gram??
If sunniva could get their Canadian facility built, you would think in the inital year, the cost of financing just by itself, would be over a dollar a gram.
3 As everyone knows, Sunniva is hoping to finance a new 740,000 square foot facility in Canada.
That financing has not been arranged, but mangement might just pull a rabbit out of a hat and obtain financing at the end of this month. Like the Sky facility in Edmonton, will it not take about ten to twelve months to build the building despite all the ground work that has been done recently, and install over 25 million dollars of equipment. Then they must test and grow the cannibus which will take another three to four months. That means first sales could take place as early as the end of the fourth quarter 2019. Please correct me if I am wrong on this timeline.
Canopy entered into a Take or Pay Contract to buy a lot of cannabis from this facilty starting in the first quarter of 2019. Canopy said last week they do not want any more Canadian growers as they have enough supply already to meet their anticipated demand. If there is excess supply, would
Canopy honor this contract due to fact Suvinna would be so late in delvering product. They might feel obligated to honor the contract though for its remaining 13/ 14 months. But, Is this not a breach of the contract ? I would hope they did honor the contract, but in case not, just who is Sunniva going to sell to? And for what price?
4 Sunniva runs two businesses and last quarter showed a loss of around 6 million dollars after G&A
expenses. Where is the money going to come from to fund these losses if they continue, and all the labour that needs to be hired in California and Canada and start up costs, before sales of cannabis materialize??
I am wondering if Sunniva is just too late to the party?
Comment by
sovy888 on Aug 21, 2018 12:53pm
yeap, you got that right bud, it is to late to the party... mj sector very overvalued, one day the bubble will burst and only a few big ones will survive... unfortunately sunniva is not one of them
Comment by
sovy888 on Aug 21, 2018 2:34pm
will chat again at $4 SP...
Comment by
URLaughable3 on Aug 21, 2018 3:46pm
the tears are real with this guy. We felt your pain of a bad entry point, but now you just b itch, moan, and lie... like a jaded lil school girl.. own ur investment buzz
Comment by
foldinggreen on Aug 22, 2018 12:16pm
All of your questions are discussed at lenth in the comments area of Ted Ohashi's article "Sunniva - Here Is What I Think You Should Do Now" at SEEKINGALPA. Ted Ohashi has the highest SP forecast...around 47. There is no current issue preventing that from happening. Hang in there.
Comment by
GOTMONEY on Aug 22, 2018 3:54pm
You are assuming those "questions" were asked by a long holder in good faith. However, we know there's been a massive increase in short interest as of late and this guy's comments read like an attempt to push all the (mostly false) bear case buttons.
Comment by
Bluechip2 on Aug 23, 2018 6:22am
@foldinggreen- at this stage of a companies development, I would agree with you if I had some insider knowledge. I see you are a long-term CRH investor, what brings you into this board, I welcome some of your insight.
Comment by
foldinggreen on Aug 27, 2018 7:55pm
Bluechip2, The insight I have goes back years. I have invested in his companies, ID Medical, Corriente, and now CRH Medical and Sunniva. Simply said, he has the golden touch.
Comment by
foldinggreen on Aug 27, 2018 8:07pm
Bluechip2, You may wish to go to youtube.com and do a search on "Dr. Anthony Holler Sunniva" to see him interviewed and more. And, researching those companies I invested in that he lead you will find the same group of respected principals have lead those same companies and others.
Comment by
sunrize on Aug 27, 2018 8:44pm
@foldinggreen: Good stuff, great to hear!