Thanks RB! For what it's worth I don't think prices could hit...

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HairyRichard

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21/03/19

11:55

Post #: 37837041
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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

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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
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Thanks RB! For what it's worth I don't think prices could hit...

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