I understand very clear why it is hard to believe. However, the fact remains nobody at least myself knew that Oregon was going to go in a free for all with almost no oversight with regulations and enforcement at all. With that said read my posts from yesterday as they have since received more money for enforcement to the illegal grows. Also the FEDS are getting involved as they will enforce the Cole Memo especially with regards to state lines. This alone greatly affected our momo killing our y/y and q/q comparisons. Ca. is hugely getting involved in enforcement destroying hundreds of thouands of raw plants and finished product. Lots of time and money wasted trying to get around rules. We should see vastly improved comparisons in Ca. I believe many small operations may continue under the black market but large grows will be strictly monitored as more money and resources(technology) are added. Next we have Mass. which over all has been a huge disappointment. The biggest issue their has been the state itself as they still have not one dispensary opened yet for recreational. Unfortunately we are still not licensed by the state but OTOH EVIO realizing the size of the market and the size of their current lab looked foolish either way IMO. Immediately get approved with a small lab incapable of producing revenues of any significance or move to a lab much larger(7,000 s.f.) and delay the process yet almost triple the footage and capability. Equipment wise it really makes since same as doubling the size of Canada.
While I disagree with Danielsen on some points getting decent sized labs that can become a megalab with $1.5 Mil+ per lab instead of many small inefficient labs. IMO, we have a total change of direction going forward which will be positive. (For simplification) Instead of 3 lab managers in 3 small labs we have 1 in a larger shop. This will bring up efficiencies and margins much higher. Not to mention finding qualified personal being another conversation.
Some may disagree but I truly believe we have a shift in strategy. IMO, no news will change perception and WW knows that. Thus no 18 labs by year end instead increased lab sizes with better margins. Also probably not many or any small $1 Million acquisitions with no certs or licences Food for thought.