This is a great case of why investors need to learn to use critical thinking when it comes to statements put out by management. It doesn't matter how much you can produce/manufacture, it's how much you can sell. That last part is what's caught so many out and caused them to lose a lot of money investing in this industry; every company comes out saying they can produce a gazillion units but then only ever manage to sell a fraction of that. Take a look at CAN, spent over $150m to build a high-tech facility down in Victoria and they are currently using less than 10% of its capacity which is why they are likely to go into voluntary administration this year.
The majority of BXN's revenues are not locked-in/guarranteed, while they are trying to find new customers their competitors will be talking to their existing customers offering better terms/prices and thereby driving margins down across the indsutry. It's happened with every other dosage format for medicinal cannabis so far so to think it won't happen for gummies is a fallacy. In regards to this company not being just about gummies well take a look at where the SP before gummies were announced, sub 1c. So that's what investors are prepared to pay for it's other manufacturing product categories.
Anyway, on the technical side it's fallen through support quicker than I expected it to. Looks like it's going to retest 3c.
BXN Price at posting:
3.8¢ Sentiment: Sell Disclosure: Not Held
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