AGH 3.85% 2.7¢ althea group holdings limited

VIDEO: DISCOVER AGH'S PEAK PROCESSING SOLUTION, page-10

  1. 2,337 Posts.
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    Scaling a loss making business is often banded about as a fault with all cannabis companies.

    However - when your market is geographically diverse across the globe there is no way to service your customers unless you “scale” geographically to reach them.

    Initially yes - that is costly, but as sales take off those same negatives turn to positives as economies of scale start to kick in. A critical mass is reached and the elusive cashflow positive status is reached (all things going to plan of course).

    You have to spend money to make money…

    Tilray and Canopy (and others) expanded far too aggressively trying to be the dominant player with massively over optimistic sales figures. Growing, processing and producing finished goods across the globe leading to massive overproduction of flower (which is still the case). We are now starting to see the MA phase of this aggressive growth.

    AGH can use that to its advantage as we can position ourselves as a contract manufacture and purchase inexpensive flower and turn that into high margin finished products for both Recreational and Medicinal markets.

    We are a very nimble small fish in a very big pond. Exciting to be part of but definitely not for the faint hearted.

    Fortune favours the brave.

    Future is bright.

    DYOR IMO
 
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