Paul Penney's questions to iANTHUS CAPITAL HOLDINGS (ITHUF) leadership • Q4 2018
Question
Paul Penney of Northland Capital inquired about the expected wholesale versus retail sales breakdown from Massachusetts cultivation in the near and long term. He also asked for an updated timeline on launching a unified national brand and the strategy for the MPX brand. Lastly, he requested figures on the average CapEx to open a new store and long-term OpEx targets.
Answer
CFO Julius Kalcevich explained that while the sales mix is a state-by-state decision, wholesale is a key part of their strategy to build a ubiquitous national brand, citing the success of MPX products in third-party dispensaries. CEO Hadley Ford added that a new unified retail brand would be announced soon and that the company is looking to expand the successful MPX product brand nationwide. Kalcevich provided a CapEx range of $500,000 to $800,000 per new store and stated that OpEx guidance would be provided after Q1, post-MPX integration.