Like everyone else, I'm disappointed that the production run for CBD Life has been put off yet again. However, here are my thoughts on today's news.
1. Mr. Welch addressed the ongoing concern of production capacity. This was identified as a potential issue months ago, they have switched to a new supplier, and we are now covered for our foreseeable production needs.
2. We are currently in production with one of our private label contracts. This presumably is Green Lotus, and Mr. Welch states the product will be finished and shipped before Sept 30. In my mind, that means this revenue will be booked for Q3 as planned.
3. CBD Life has confirmed that their market tests in Mexico went extremely well. That is great news. I am guessing these market tests could not be completed until the permits were issued. So now they are complete, and they are strategizing the correct product mix and quantities to maximize the impact of their initial order and will have that information to RMHB by Sept 30. That means we can start production immediately in Q4, giving us the best chance to have everything completed and shipped so we can book that revenue in Q4.
Again, the CBD Life delay sucks, but if you're in it for the long term, one quarter doesn't really make a huge difference. The key is that we are still on board with them, and the overall potential is HUGE.
Those are my thoughts.
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