The deal between Crystal Mountain and Biofloral appears to be a...

The deal between Crystal Mountain and Biofloral appears to be a win/win for both companies.

Canada is a very big country with long distances between towns and major population centres, and maintaining a sales force to promote the sale of products to the retail trade can be very expensive.

It appears that the two companies have their individual sales forces mainly calling on different customers and with different product ranges, so each company's reps can sell the other company's products as well as their own range, giving the opportunity for much greater sales for both companies at no extra cost.

This appears to be a much better option for THC than an expensive capital-devouring takeover with flow-on complications with their ASX listing.

The Canadian hydroponics business is a very useful addition to the company's revenue potential, but the big revenue potential should come from the Australian operation based on cannabis growing in conjunction with the excellent research laboratory facilities, and the Australian and international joint ventures and collaboration opportunities which that will bring.

Buying that laboratory, and at such a bargain price, has given THC a major advantage over its Australian competitors.