The business strategy now makes sense, at least in theory.
But what they are now offering is a complicated, and costly process, with uncertain returns. The projections rely on a continuing high farm gate price for cannabis and a completely speculative price for indoor-grown vegetables.
And while they have purchased what may turn out to be excellent technology, practical operational farm sector experience inside RGI appears to be very limited (apparently zero among the directors).
The reward for success has probably grown, but the capital at risk, as well as the execution risks, are now considerably higher than they were previously.
RGI Price at posting:
36.0¢ Sentiment: None Disclosure: Held