Just wanted to give a heads up that at this selling price Aphria would be selling BINGO to the provinces at under $2.00/gram, when retailer/provincial margin of 40% and $1.00/gram excise tax is considered.

This remains above their blended cost for cannabis of $1.54/gram at last Q end (“blended” as in it includes Broken Coast which used to be broken out into a separate line item) . However, it is below the $3.03/gram costs PLUS Fair Value Increment. This might require a write-down/adjustment of the IFRS voodoo component but not the cost component.

How it gets disclosed will depend on immateriality of the BINGO offering’s contribution to inventory on the next Q statements.

That is all…. just a heads up.

On another note… ounces at $112…. shots fired!! The game of limbo (“how low can you go”) on the value brands is heating up. Aphria and Pure Sun Farms are going to put pressure on Aurora, Hexo, Canopy, and other value producers.

The preceding is the opinion of the author and is in no way intended to be a recommendation to buy or sell any security or derivative. The author has a position in Aphria and will not start one or divest in the next five days.