CannTrust Q4 F2017 Rundown

Open up the financials and MDA to follow along.   TRST recorded sales of $7.0 million for a 14% QoQ increase. Grams of flower sales increased 5% but were offset by a decline in price per gram to $8.14 from $8.81 sequentially, resulting in a 2.6% decrease in dollar sales.  Oil sales increased 24% in dollar sales with sales by ML growing at a like rate. Average revenue per ML decreased slightly from $2.04 to $1.97 but revenue per gram equivalent of Oil went up to $9.34/gram equiv from $9.27/gram equiv.   So while bottle price notionally fell, price per gram of input improved. [No one…

Continue Reading
Harvest One – Structure & Current State – 02/18

I looked at these guys a couple of months ago...and thought I'd do an update on the last interims. This was prompted by a post from one of our subs in the field, and that they seem to have gone dark on 'unofficial' communication. I'd seen a couple of crap fluff pieces on them in the 'news' lately, which have all the look and feel of paid advertising. It's a similar method to paying a couple hundred dollars a month - which can buy a company that uses several dozen social media accounts (that appear valid) and post a certain number of on message…

Continue Reading
MedReleaf – Structure and Current State – 02/2018

Man, these guys are cash deep.A few notes from their financials:G&A is extremely high. Uncertain whether it's mainly due to formation, or whether it's a function of stabilizing operations....or maybe their GMP/ISO setup initiated a chunk of this. Either or, one should expect incremental volumes to be added for far less per $ of G&A.$30MM in G&A to sell $11MM in dope. Gads.Royalty agreement was renegotiated. Seems alot of pomp and circumstance to get back a voucher for $250k.The issuance of some $8MM in shares & $1.5MM in cash to purchase 3 'intangible assets' on December 8th looks like for strain acquisition. "Equiposa, Orellium…

Continue Reading
Canopy Growth (WEED) – Structure and Current State 02/18

There is a ton of moving parts in this. I think Blue called it an octopus. An understatement in my view. There are definitely tentacles though. Lots of them. And yes, octopi don't have tentacles, they have arms...it's a figure of speech :)The optionality and contingencies littered throughout the financials - all in 4 point calibri - reveals extremely complex statements and a financing model equivalent to having an elephant on the other side of a teeter-totter.I didn't think I'd ever say that ACB was fun to do, but compared to this, it was. $40MM in G&A in the last quarter alone, with $19MM…

Continue Reading
Cannabis Company Value Chain: Part 1

I’ve been building out a Value Chain for the cannabis industry.If you’re not familiar with a value chain, think of them as a road map for business.While they are good for classifying individual business units (a thrill a minute), value chains are really good for identifying the components of a business where a company might need specialized talent or leadership, defining natural ‘subunits’ or natural divisions within the business, where challenges in delivering profits might be, and where it might have gone horribly wrong when the trustees move in.Subunits are sometimes referred to as ‘silos’ in companies where empire building is a reward until…

Continue Reading
Close Menu