UK Expansion VS. Initial AUS Expansion.
Up to the UK Numbers to change. If they don't then the writing is on the wall. No one is arguing that there isnt potential for growth in a new market, the issue is that AGH has not proved to the market that it can break in.
Current market is fear, but you decide whether the team can manage to break into the market and so on in time before they run out of cash. Raising at these levels? Game over.
Personally I seriously think many have underestimated the importance of the likes of Cannvalate to AGH's Australian rapid growth, they went from ~300 or so before signing up with them to immediately powering on to smash the 1000 patient milestone in a few months, then so on to 2000, 3000 etc. Can Althea get such a distribution partner with 50% market share in the UK? So far they are purely relying on their Althea Concierge which they have in Australia as well. How's that looking for them... Connect the Dots. (How much % of patients are from Althea Concierge vs others?)
Of course, this all goes w/o saying what
@sidage has been saying about scaling a loss making business. Oils in general also a very razor thin margin and will continue to get even lesser. But of course if you believe this, you'd be sold out of AGH anyways.
tldr; AGH not showing same levels of growth in overseas markets like the UK compared to Aus. Why? Market wants to know, plus seeing the numbers makes it seem ridiculous. They need to change this ASAP or risk running out of cash. Can they change this? I don't think so, and for a good reason. They lack something in the UK which they do have in Australia.
Plus this rapid expansion is insane on the costs. They will inevitably have to do a raise and if the SP doesnt recover by then they are in deep trouble.
Connect the Dots. DYOR.
