Throughout the year I’ve been reasonably confident they would make a profit even though I’ve always maintained that the price point of $4 that they quoted was extremely unlikely come harvest. My scepticism on the $4 was informed by industry expert analysis such as the beverage analyst from Rabobank and also a bit of common sense. I’ve seen it all before with farmers chasing cash crops that fetch a high price the previous season. Especially something that takes 90 days to grow. I said at the time that IMO their key advantage over existing financially stressed farmers converting was access to capital with the high input costs for cbd hemp. I just didn’t think profit would be anything close to the $40m odd suggested in finfeed articles etc.
IMO the key info we now need to speculate profit this year is the poundage and average CBD% of the remaining hemp after satisfying the DL contract. I genuinely hope they exceed everyone’s expectations with harvest results.
CLI Price at posting:
3.1¢ Sentiment: Sell Disclosure: Not Held
