That's utterly false. Many extremely successful businesses never own their means of supply and production. Many are purely retailers, or consultancy groups, or holdings groups.
The only question is whether supply and production will likely become a problem for Althea while they ramp up their own means. The answer to that is a resounding no. There is no shortage of supply, and the production of plant extracts is not rocket science - you'll always be able to create the extracts from the plant material. The wholesale price of cannabis will likely trend downwards for years to come, as mass production for the growing global market continues to ramp up.
In my view, the only reason why it makes sense for Althea to seek to create their own supply and production is because they are growing a privileged access to a distinct market, which they can tailor their production to and further secure the uniqueness of their offering. Their license, and the techniques they employ in production, will be a selling point for the segment of the market that have the highest requirements for production quality (in other words, highly regulated medical cannabis markets: precisely their target markets).
AGH Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
