VIT is the equivalent of Marvel's Civil War at the moment. Power struggle between MD and current board vs. old management/board members. Recent AGM saw almost everything get voted down including the remuneration report which constitutes strike 1. Fair to say most shareholders have lost faith in the ability of the current MD. Looks like VIT is trying to go down the path of being an ordering platform for Cannabis and other mediciations which isn't a bad idea e.g. be eBay and clip the ticket of everyone selling stuff on it.
Anyway, there is a lot of competition in the space but it's a global market and demand still outstrips supply, especially for ECS products. Not a quarter goes by where Nan says they can't keep up with demand which is why they keep investing in growing the business. They've also been able to win contracts in key markets like Germany despite being up against much larger Canadian firms than Cronos which means ECS are able to hold their own. They have a point of difference in that they focused on being a low cost producer from day 1 and everything is built around this strategy. No large debts/expensive facilitites to maintain and no large power bills since they rely on the sun and solar power. This is key for Australian producers since our power costs are more than Canada (but significantly less than other countries like Germany):
Anyway, remember that ECS just signed a deal with a subsidiary of the largest Cannabis company in the world (Curaleaf) and also has an existing agreement in place with the fourth largest generic pharmaceutical company in the world (Sun Pharma) which has a market cap of $68b AUD. That's larger than all of the Canadian cannabis companies combined. The contracts they're signing are also multi-year contracts, this locks in future revenues and gives ECS the confidence to keep expanding.
It's definitely good to keep an eye on the competition, but at the moment I don't see anything to be nervous about. The minute there is you'll probably hear it from me first.
