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-- Principal Financial Policeman And simply to build on it, David, we're around an 80% share today with 4 SKUs on the market. It's around 3% to 4% of sector share. And also we're having out of stocks today. So we do not truly know what the potential is yet. What we do know is that we're scaling up manufacturing really quickly.


So we recognize that we can double, maybe triple that based upon demand without endangering quality. So we're pushing it as high as we can. We have actually got very appealing rate explain on the market. And also now it's simply a distribution as well as fulfillment game.-- Chief Executive Police Officer As well as by the means, we're not done, right? So we have more beverages coming to market, and our advancement group is working like all the time to comprehend what is the following variation, what is the next-generation of our drinks product so that we remain to stay ahead?-- Canaccord Genuity-- Expert That's all very handy - business awning.


And has the federal government come back at all with possibly altering the equivalence grams that remain in these beverages? Because I would presume that you can't actually start marketing 2 or fours of these things up until that obtains amended.-- Chief Executive Policeman Yeah. Look, I believe there is some support of it, especially in the rural companies that sell the item.


-- Chief Financial Officer We're functioning on it. Yeah.-- Canaccord Genuity-- Expert Thanks. Your next question comes from John Chu from Desjardins Capital Markets. Please proceed.-- Desjardins Funding Markets-- Expert Hi. Good early morning. I just wished to follow-up on the remark made earlier regarding web profits progressively boosting in the Canadian Rec market with more store openings. So sort of thought it would certainly have been possibly a bit a lot more faster development in the coming quarters and also just more gradual. Can you talk about just exactly how you might see all those variables coming into location in the next number of quarters?-- Chief Financial Policeman Yeah, John. So look, what we've been pleasantly stunned by is stores remaining to open also throughout a pandemic and our newest price quote is that by the end of schedule year, we could be over of 1,200 stores across Canada.

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As we dial in our supply chain and also remain to carry out in regards to PO satisfaction, as we continue to perform in terms of Cannabis 2.0 implementation, even more beverages, even more delicious chocolates, even more vape out in the marketplace. As we remain to round off our value offerings and as we remain to enhance quality throughout the board, we see a whole lot of tailwind heading into the following 6 to nine months.




And also we know that there's possibly some solutions coming the next six to 9 months. Yet in the meantime, this has been a respectable Bonuses defensive play. Consumers are still investing in cannabis - awning supports. As well as with more stores coming, we assume that's going to continue to open the marketplace.


So all signs benefit Q2. And also equilibrium of the year is actually simply mosting likely to be a function of those stores proceeding to open up. Your next concern originates from Doug Miehm from RBC Funding Markets. Please proceed.-- RBC Funding Markets-- Analyst Thanks really a lot, and also greetings.






Look, I'll take a stab at this. As well as David, you can enter. So two points. On market share, we are seeing enhancements in market share. Rather normally I would say we struck a trough in the April, May time frame. And as we check out recent trends on share across the provinces that we can really compute market share for, we do see an uptick across Canada in terms of Ontario, Quebec, Alberta, DC, as well as we're confident that that uptick is mosting likely to continue for all the reasons I mentioned at the last inquiry.

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We have actually taken the steps of obtaining our supply learn this here now chain in balance. As well as we recognize that in the short run, that may impair our gross margin performance as we experience lower usage levels. And we additionally recognize a few of our competitors are taking a different course which is still remaining to operate at high use degrees, but producing perhaps 3 or four times their sales each quarter in their harvest which places all that on their annual report, my review here which's going to come back at some factor In regards to excess.




We understand that we've obtained continued possibility to remain to boost our margins. As well as we assume the priority right currently is to preserve a well balanced supply chain versus simply filling facilities to maintain our economic climates of scale going. To make sure that's the course that we're taking. And also once more, we proceed to think that the following 6 to nine months for this sector are going to be extremely favorable in terms of shop counts.


This ends the question-and-answer portion of the phone call - best awnings. And I would currently like to turn it back to Mr. Klein for final comments.-- President Yeah. Thank you once more for joining us. We anticipate sharing additional progress in the coming months. In the meanwhile, I really hope all of you will certainly attempt our impressive items, see our Tokyo Smoke and also Tweed shops, discover our shopcanopy.com web site.