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lbcb123

06/22/18 10:07 AM

#584 RE: oiledgearz #583

How are they going to provide product to a "major" distributor when their total capacity is only 1700kg now and will reach 17,000kg when their new facility is complete?

People keep forgetting they aren't trying to play the low-margin volume game. They need to supply their medical patients in Canada first. Then they need to supply Shoppers Mart and Fire & Flower. Then any excess can be exported. This looks like the right size of distributor for them to be working with.

17,000kg = 17M grams. Average price of $8 = $136M gross. Work out expected margins and then apply whatever P/E you think they can support. Then ask yourself what is the market cap and price per share that will come to.

The business plan is solid and progressing nicely.