Ann: Health Canada Approves Conversion of Dealer's Licence, page-19

First 19 Last

Share
Profile

Follow
HairyRichard

1,851 Posts.

134

21/03/19

11:55

Post #: 37837041
Share

Originally posted by Red Baron: ↑

The 1st link below shows the Canadian wholesale spot price, retail outlets pay for dried cannabis flower from LPs, the 2nd link gives some background on the index.

Currently the wholesale price is C$7.01 (A$7.35), I posted some figures a few months ago as to revenues we can expect to receive. To rehash that and add some workings to HairyRichard's post:

from RGI's reports & presentations, each machine produces 7lbs each 8 weeks. A 10,000 sq ft can accommodate 10 grow rooms with 24 machines in each room stacked 2 high.
That multiplies out to 1,080 lbs per year or 4580kg
4580kg @ C$7 gram = C$32m gross sales.
Now build out that 44,000 sq ft facility to say 30,000 sq ft = 30 grow rooms, 720 machines C$96m gross sales.
They can produce at a cost of less than $1 gram

Even if prices halved, or went to $2 gram, we'd still be making a heap of money, and that's just from 1 venture ignoring Fresh Foods + machine/fertigation sales. And we have a market Cap of $28m

https://reports.cannabisbenchmarks.com/canada/

https://www.prnewswire.com/news-releases/cannabis-benchmarks-launches-canada-cannabis-spot-index--a-weekly-assessment-of-the-wholesale-price-paid-by-retailers-to-provincial-suppliers--with-an-average-price-of-c7-79-per-gram-300768159.html

Expand

Thanks RB!

For what it's worth I don't think prices could hit $2/g any time soon. Too many Co's would go under and the price would then increase.

Good to know that we're soon to be one of the safest MJ growers in the world.
Not to mention our other revenue avenues from Freshero, Gibio, and fertigation...

RGI Price at posting: 26.0¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

HotCopper Highlights: Your most watched stocks for Week 47, 2024

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

There are more pages in this discussion • 30 more messages in this thread...

First 19 Last

Add RGI (ASX) to my watchlist

Ann: Health Canada Approves Conversion of Dealer's Licence, page-19

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Scientific conference spotlights PYC's work on blindness disease treatment

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

Sales growth pushes Lovisa's fortunes (and shares) upwards

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

HotCopper Highlights: Your most watched stocks for Week 47, 2024

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL