Avant Brands Inc. (AVTBF)

[BlueGreenPower]

Cannabis oversupply in Canada may be closer than some expect, bank warns

https://mjbizdaily.com/cannabis-oversupply-in-canada-may-be-closer-than-some-expect-bank-warns/

Looks like the big boxes may have already outgrown demand, and smart companies like Canopy are making moves to scale back future expansion to sustainable levels. Like selling GTEC their facility in Kelowna, BC.

Fortunately premium craft growers like GTEC don't need to offload huge quantities of commercial weed every quarter to someday be profitable. They can start small and grow and hire to fit their supply agreements.

GTEC has projected 18,000 kilograms (18,000,000 grams) annual output by 2020. GTEC's average price per gram was $5.85 on their last report. On my calculator that adds up to $105,300,000 annually, or $26,325,000 quarterly. GTEC's net loss was only $2.3M CDN last quarter, so future revenues should easily dwarf expenses pretty quickly in 2020.

Of course GTEC must continue to build demand for their premium brands, and secure supply agreements to offload their increasing capacity. Now that GTEC can supply directly to retailers, medical patients, wholesale (B2B), and provincial governments, future supply contracts should come much easier.

Looking forward to seeing GTEC products in all the Provinces. imho glta

https://backend.otcmarkets.com/otcapi/company/financial-report/226270/content

https://www.gtec.co/wp-content/uploads/2019/07/GTEC_Sprott_Report_072219_CanopyFacility.pdf