Ann: Flora JV acquires Heyday Medical Clinic, page-3

Numerous factors I have observed (recently taken a small position here but like the outlook due to 2.)

1. Margins have been decreasing over the years and only finally stablising. Gross margin around 25-30% but net profit margin of around 1-2% (not very profitable).

2. Recent margins are being (slightly) expanded, if this progress can continue then the SP will see an improvement.

3. Acquistions paid for via cash and script (thus should be increasing EPS through cash, but scrip offerings are reducing this uplift in EPS)

4. Medicinal cannabis market in Aus facing a crunch on margins for retailers, wholesalers, service providers and even cannabis growers.