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Re: OhManIDied post# 1059

Thursday, 10/10/2019 2:01:12 PM

Thursday, October 10, 2019 2:01:12 PM

Post# of 3371
OhMan, you made me go to SEDAR because I didn't believe or remember those numbers.
You're right!

Bailing on that supply agreement eliminates a huge liability (a 2 year commitment of roughly $100M). It really gives some insight into the maturity of the company. I wonder how much of the $22M+ deposit (as of June 30, 2018) will return to the company.

OMID


Obviously someone was smoking weed and ate a box of edibles at the same time, when they signed a 100M cannabis supply agreement. At their current revenue rate it would have taken them at the very least, 10 years to buy the allotment.

I'm wondering though, if like many contracts in this business, was the guaranteed amount much less? Did they put the max value of the deal into the Q? Without the details it's tough to know.

I'm also wondering and hoping that there was only one contract and it was with Aphria. Then you are also correct; cancellation of that contract relieves them of a huge obligation, because as you see, it increased in years 2 to 5.

Hopefully they have enough capacity to grow their own to meet their customers' demand and Aleaf's revenue goals.



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