There is Tweeds first Quarter, 0 revenue not a suprise as the first and only grow was a month late and sold out in one day, But at least they where Honest about the uncertainty of the MMPR and the impact of the injunction.
Sector Insights
"Canada is leading the world with respect to regulatory and product standards for the production of medical marijuana, and Tweed has clearly asserted its leadership role within Canada," stated Bruce Linton, Co-Founder and Chairman of Tweed. "This is a sector that was established through the MMPR less than a year ago and, while much work remains, Canadians will benefit from this bold leadership."
The MMPR structure was announced on June 19, 2013, and represents one of the most comprehensive and safe frameworks for the private production and sale of medical marijuana in the world. It provides a national basis for both controlled supply and quality verification, requiring LPs to achieve product testing standards not previously applied in Canada, and setting a standard as high as any in the world. This is to the benefit of the patient's health. For example, MMPR LPs are prohibited from the use of virtually all pesticides, fungicides, and herbicides, yet must produce a product that is without molds or other bacteria, tested to a microscopic level. Tweed executes comprehensives tests on all medicine prior to having it available for shipment. Third party labs are currently being used as Tweed is in the process of constructing its in-house laboratory. At the end of the approximately four month growing period, the drying, trimming, curing, testing, cold pasteurizing (as required), re-testing and packaging process can add as many as 5 weeks of production time to the seed-to-sale process following harvesting. This time commitment has merit, yet as Tweed has experienced, it does delay the initial production for volume release. Tweed began harvesting its first full size commercial growing room on April 21st, and shipped this harvest on May 5, 2014.
As market participants are aware, an injunction announced on March 21, 2014 allowed current growers and patients under the previous regulatory regime to continue growing until a legal challenge is completed. At present, the priority for many LPs, including Tweed, remains production of sufficient product to meet patient demand, even with the injunction in place. While production is a function that can be accelerated - and in the case of Tweed has been accelerated - the complexities of dealing with a crop in a highly regulated environment translate into added variables beyond the addition of further capital or personnel. The function of construction and production are serially linked, such that a multiple month time lag exists between decisions to expand capacity and the availability of new medical marijuana in the market. This constraint has been more impactful than anticipated by Tweed, has been a frustration to patients, and appears likely to be the singular l