InvestorsHub Logo

drmaddogs2

09/07/19 6:37 PM

#102 RE: RHF469usa #101

Sure, Your welcome.
As a side note there are about a dozen different study groups that one might call 'Of measure'.. ArcView is one market analyzer, this is from the free 7th edition summery report(full report is about 850$)
arcviewgroup.com/research
' it is forecast that the “Total Cannabinoid Market” (TCM) in state-regulated dispensaries, pharmacies and general retail outlets will soar to $44.8 billion by 2024.
• The largest percentage of that $44.8 billion will be spent in regulated cannabis dispensaries that are now coming to all 50 states, Washington, D.C., and the U.S. territories by 2024.
• The second biggest percentage will be spent on CBD products in U.S. general retail outlets, in both online and brick-and-mortar stores of every stripe.
• The smallest piece of the pie in the near term will go to pharmacies, though giant pharmaceutical companies are furiously working now to increase that share with new cannabinoid-related drugs.
The devil is in the regulatory details for all three components of the TCM, as the legal regulated dispensary sector found out to its dismay with California’s disappointing adult-use launch in 2018. Much remains unclear about how Washington, D.C., will handle the regulation of pharmaceutical cannabinoids and the general retail market for CBD products. The FDA just held its first hearing on the subject May 31, 2019 (see “US Leads Total Cannabinoid Revolution”).
Even less certain is the future of CBD sales in other countries, which is why this report only presents detailed analysis of the TCM in the U.S. The Canadian (see “The Noble Experiment”) and other international markets (see “The Seeds of an Enormous Worldwide Market”) are discussed and forecast only in terms of their legal cannabis markets.

Keeping in mind Stil says they can ship globally...…
Another point is in CBD retail cost evaluations tracking, as little as three years ago selling companies were recommending 2-4 Mg dosage... today the general market is going with 50 mg, that Romanian test case is for 130 mg daily... just to show the trend.
Most all CBD 'tinctures' are one gram of CBDs per unit sold @ ><50$ per unit/gram.
For the last few years there has been, ><, a 10xs markup from mass producer, then again at retail= across a sales counter.. with some variations when mass producer sells to intermediary wholesaler who sells to retail packager..
The CBD market is about matching the fast expansion, by per dollar, as pot is expanding and in large part due to newness of 'CBD craze' while pot is well known, 'CBD is running about 1/10.... the CBD market is just expanding now.
3 years ago a kilo of extract could generate as many as 250,000 recommended daily dosages(4 mg)(keeping in mind the dosages were almost negligible in results!)
Now it is 20,000 dosages (50mg)(daily and the CEO has stated THAT number is generally pointless.
Heading into 2020 E.U.(test case Romanian) @ 130 Mg means about 7,700 daily dosages from a Kilo Isolate(JMHO that the CEO sees this too low also).
This trend can also be applied into Isolate pricing... it rapidly fell and is slowing its fall as dosages surged and have slowed in incremental steps downward.
One might consider the case for Diamond sales. When dominance happens, pricing stays steady.... for CBDs when dominance happens
something of the same will occur… both enabled by locking supply channels based in size of operations, lowest cost producer wins.

250,000 recommended daily dosages(4 mg)
Now it is 20,000 dosages (50mg)
2020 E.U. 7,700 dosages (130 mg)
Stil estimated cost .78 cents per 1000MG..(With a possible 50% cost drop with all 3 production Plants all on line in 2020.)
Stil is going to drop the hammer on Chinese imports= 50% of Isolate markets worldwide.