AC8 mkt cap 70mill at 40c we at ZLD THC MXC lw end of town mkt caps, page-70

Luke,
You make some interesting points.

I am not a holder (nor have I ever been) but I was looking at taking a stake in CAN when they were originally looking to develop their facility at the Tullamarine airport. I thought it made a lot of sense with the export market at your doorstep. Obviously the deal fell through, but the decision to relocate in the first place to Mildura, imo, sounded ridiculous from an sustainability perspective.

Cann Group claimed they would have lower operating costs in Mildura due to the higher sunlights hours resulting in reduced power costs. Basic greenhouse principle 101 is that its cheaper to heat a greenhouse than it is to cool it, hence why all the major greenhouse operations in the world are located in cool / cold temperate climates. Mildura temps in summer easily reach above 40C on a regular basis. So, I am willing to bet that what they offset in lighting costs, they will surely be paying double, if not more, to blast their air conditioners all summer to continually maintain their large facility at a constant cool temp of ~25C! In fact, thermodynamically, the larger the operating space, the greater the energy requirements to keep a facility cool enough for growing cannabis. If and when they start production, operational costs in my opinion will eventually result in major cost blowouts.

Did anyone else ever have similar concerns about their plans to build in Mildura?

I wish them all the best though.