Wow, this is very important. This could be a huge problem in regards to how much revenue these guys make. We know that the license was acquired through Natural Herbal Remedies. NHR was bought out by some big money on the east coast and is linked to the Swell Dispensaries in Arizona. Swell was well established before Sweet Virginia opened, which means that the majority of their cannabis was already being grown in house.
If Sweet Virginia is used to supplement the supply that was being bought from outside growers Swell might not need to buy a lot of product. We don’t know how much of a gap Sweet Virginia is filling, but we have gotten estimates on how much SV will grow annually (1,000 lbs). Swell needs to buy 700 lbs of product in order for SV to sell their whole supply.
A problem arises if Swell only needs to buy 500 lbs from SV, because now SV is forced to cap sales at about 700 lbs. It won’t matter how much the facility can produce if Swell doesn’t need the product. Another problem is that Swell knows that the grow facility needs to sell a lot of weight to them in order to increase the weight that the facility can sell on the open market. Swell can easily set a low price to a facility that either has to take it or go out of business. Swell has this grow facility over a barrel and will probably end up buying it for very cheap at some point.
