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Chicago-Paul

08/13/18 3:15 PM

#20157 RE: cobblestone1 #20148

Actually, I think exactly the opposite. Aurora is holding onto its CASH in case one of those "emergencies" that you listed happen. Cash is KING. Companies do not go bankrupt when they have too much cash.

Yes, Aurora is funding their acquisitions via dilution and they are keeping their cash on hand to fund operations (as they should).

We have to keep in mind that no Canadian Cannabis Company has sold one single gram of legal recreational cannabis YET.

However, 570,000 kilo capacity means 570,000,000 grams of Cannabis Capacity per year. Even if Aurora sells their cannabis at a discount rate of $5 gram - that is approximately $3 billion in revenues from dried flower alone.

That does not take into account the selling of non-dried flower products (oils, swag, etc).

I just got back from Denver last night. The dispensaries in Denver no longer have lines outside their doors (like they did when Cannabis was first legalized).

However, they do have a nice flow of traffic going in/out of their stores. Its kind of like "Beer Store" Traffic. Instead of picking-up a 6 pack of beer on the way home, they just pick up some weed instead.

When you go to the Liquor Store - is their too much beer, wine, and hard liquor in the store? Are there too many alcohol choices? Is the abundance of beer driving the craft beer costs down? I don't think so...