CIIX is taking advantage of FDI(Foreign Direct Investment). Such operations require funding. Talent and FDI are expensive, yet CIIX is scaling their operations to a huge Chinese market which could come with great rewards. Do you think that you can branch off into the hemp sector without spending a little cheddar? You need to look at the big picture and realize that CIIX is practically a start-up company in the hemp sector, and all start-ups spend a ton of money; operations would be unsuccessful without spending money.
CIIX could easily take advantage of the low-cost hemp supply in China. China is the world leader in hemp production --accounting for 50% of all production, and they hold most of the world's hemp patents. China is an emerging market with low cost labor. For all my business comrades, you should know the money-making potential of globalization. It lowers CIIX's risk since the risk is spread between China, USA, and Canada; if one of those countries were to put their foot down against hemp utilization, CIIX would have two other hemp-friendly markets to rely on for revenue. I expect CIIX to fork up a lot of money to scale properly; this is expected with any emerging player[emphasis added]. The CEO is a genius, and I can tell that he is well-educated in business practices. He is by the book, so I am expecting huge things here in the future.
The CEO realizes the benefits of globalization for one. Two, he is a conservative spender; he focuses spending on scaling operations and hiring the right talent to get the job done instead of on junk PR hype. He is taking advantage of emerging markets with low-cost labor. He spreads the risk among 3 separate countries. He's catering to the Chinese market which makes up 20% of the world's population, and their GDP is close to ours in the states. He's very intelligent and laser-focused. This company is going places --especially as black market cannabis money continually shifts to a legal market. The customers are already there --ready to switch to lower legal-market prices. I'm impressed.