Since legalization, we have been forced to value cannabis on a 3.5 grams basis, instead of the cost per ounce, or a quarter ounce. To realign our value framework, we price 3.5 grams in an ounce context, or $191.60 an ounce for White Out by Delta 9. Is this a good deal based on the cost of the bad old days of illegal cannabis? Yes, we think this White Out is priced appropriately as a $191.60 an ounce weed. But, today “Weed” is a lot cheaper in Canada.
Cost: $23.95 for 3.5 grams
Would we buy this again? Maybe. Folks, there is just so much good “Weed” in Canada. It is all about finding that one strain that resonates with us. Delta 9 priced at the $23 for 3.5 grams competes directly against Good Supply (Aphria), Redecan, Color Cannabis (WEEDMD), new and improved Canaca (Tilray) and Hexo. They all cost about the same and they all deliver a decent “high” experience. Decisions, decisions, decisions ….
On an investment note, there is a change happening in investments. It started with Bitcoin. And than, it was Tesla. Our new generation, the Millennials, are putting their stamp on the future of investing. Who cares about cash flow metrics? Perception can be reality. Yesterday it was GameStop. Today it is Sundial (SNDL)? There is something “Wonderful” happening.