Business valuations also take into consideration future growth of operations, capacity and physical facility expansion that the buyer identified during their due diligence which are not readily identifiable.
Other factors such as the opportunity cost in terms of money, time and obtaining regulatory approval to build and have similar operations up and running in the dynamic Canadian cannabis industry where capacity is in demand will play a prominent role in valuations.
The article also mentioned the quality of the bud could be a factor in the purchase. There was no mention of the growing technologies being used by Broken Coast. I am beginning to think the Israeli technologies that BLDV has to offer could be more valuable than initially thought.
Not to state the obvious but a deal in the end concludes on an agreed-upon price that the buyer and seller are willing to transact at which might not be rational given market conditions and financing liquidity that exist at the time of the transaction, i.e. factors in the dynamic Canadian cannabis industry.
Go BLDV!
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