The Sweet Spot For a Sensitive Plant
A Conversation with Glass House Leadership Reviewing Q3's Earnings
Cannabis cultivation, contrary to popular opinion is very hard, especially if you want to grow consistent high-quality cannabis at scale. The main reason is just how sensitive the cannabis plant is to its environment. I wrote a whole post called the Big Myth of Cannabis discussing this very topic.
I bring this up because Glass House (OTC: GLASF, Canada: GLAS.u) announced stellar Q3 earnings that gave every investor a taste of what is possible while only using 20% of their operating capacity. But then the company followed it up with guiding down Q4 expectations because normally perfect Ventura County, California weather was not perfect enough and it was a little too hot and too humid.
The supply chain for consistent high-quality cannabis is very immature. How do you build brands or loyalty with a consumer with inconsistent products? This gets to why there could be so much value created for shareholders in Glass House and why what the company is doing could be very valuable long-term. They are trying to grow high-quality cannabis in the perfect environment with one of the best greenhouses in the world for the lowest possible price and do it consistently.
What Glass House is doing is very unique to cannabis, as no other company has successfully scaled cultivation in one location like the company is doing. And this is what I wanted to spend my time on with them when we had our conversation reviewing third quarter results.
I hope you enjoy the Q3 discussion I had with CEO Kyle Kazan, President Graham Farrar and CFO Mark Vendetti.
Here is the YouTube link: