If they can get their manufacturing up and running in Europe and...

If they can get their manufacturing up and running in Europe and manage to win some decent contracts over there then they might be able to hold 3 cents, but the problem is the SP is already far above that. They don't really stand a chance against the big companies from Canada trying to manufacture in Australia and export to the UK/Europe. Think about it - they have to import plant material from Canada, manufacture it into gummies in Australia and then export it back over to the UK. Compare that to a Canadian company that grows their own plant material, manufactures it into gummies and then sends them on a 7 hour flight direct to the UK/Europe. BXN can only be cost competitive with their manufactured products in Australia and the competition for gummies is just getting started thanks to customer preferences recently moving away from oils.

There is also a massive single customer risk in the form of Montu, if they pull the plug for any reason it's back to 1c for this company. The contract is for two years but there is no minimum order volume that must be met, just a discount if they order above a minimum volume. So they could order nothing if they find a cheaper source for gummies. That could be why Montu received their import license for medicinal cannabis products, if they can get the gummies cheaper from Canada I'm sure they will. Never underestimate a company like Montu, they are on the warpath for bottom line growth so they can list on the ASX and get their tens of millions. If there is a cost saving to be had they'll take it.