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Thursday, 08/17/2017 8:08:38 AM

Thursday, August 17, 2017 8:08:38 AM

Post# of 128521

I seen this recent interview with Vic. Vic was criticizing other LPs who are stockpiling inventory in preparation for rec. I attached his quote below.

For me it makes senses to have inventory ready. For him it seems that it doesn't. Can someone please explain to me why having stockpiled inventory will end up being bad for the statement of financial position (The balance sheet). Is it because once the inventory is sold it turns into an expense?, and the numbers will be thrown off for that particular quarter?

Im not bashing or pumping, just trying to figure what he meant because it doesn't make sense to me. Im learning.

Appreciate any thoughts.

https://www.midasletter.com/video/aphria-inc-leamington-cannabis-grow-operations/

Vic Neufeld: Since November, Aphria is selling what we’re growing. We are absolutely maxed out. We’re already dipping into our vault structure. So what we’re growing every month, every week, is what we’re selling. Be very cognizant of licensed producers who are building up vault full after vault full of inventory, because one day, that balance sheet inventory has to hit the income statement. And when it’s reversed, it’s going to be damaging to that income statement. Aphria is not in that situation.