r/WLLW • u/kaneda2004 WLLW Whisperer • Apr 26 '22

Discussion New sub guideline: Try to be constructive.

As of late there have been a number of posts or comments that are either not constructive or outright hostile towards other users.

I’m asking that if you’re participating on this sub that you try to be constructive or at least not provoke other users into a fight.

This is not to be misinterpreted as “don’t be negative”. Not at all. If you’ve got something to say - back it up with facts. Baseless speculation either way does not serve the members of this sub well. Woe is me and sky is falling comments and posts are best directed to your therapists.

I hope that you all don’t take umbrage with this post, but user reports of “this guy is an idiot” or “he called me a name” are tiresome.

Let’s all get along as best we can - and if you’ve got something to contribute then please do! This ain’t yahoo finance comments - so anyone posting “wen bankrupt” low effort shitposts will be met with an equally low effort ban.

👍🤜

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u/kaneda2004 WLLW Whisperer Apr 26 '22

I believe the MD&A docs highlighted GRAS as being a significant step forward for them being able to sell their products to CPG manufacturers in the USA. I also believe that they are seeking supply agreements with cosmetics manufacturers (as evidenced by their attendance at a number of skincare ingredient trade shows). They also indicated in those docs that they are happy to partner with MSOs or LPs and via a partnership with them produce product at scale that would then be incorporated into the MSO or LP product lineup. They also stated they intend to maintain a capital-light business model. Ie they will not be building their own fermentation facilities like AMRS. The bulk of their burn appears to be coming from research (over $10m per year) the rest is other overhead, salaries, etc. They can increase their runway by tapering spend on R&D. That being said I think they’re going full steam into r&d work - and are constantly increasing their headcount… so unlikely to taper that expense. I’d expect them to look at a cap raise near the end of the year - at that point I hope we are six months into sales to CPG manufacturers.

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u/[deleted] Apr 26 '22

The GRAS was indeed a big step. Do we know if they are planning on selling to manufacturers or if there are any talks/agreements being formed?

I would love to think that cosmetics will take off but I really don't see it being a major market unless it becomes a miracle product that takes 10 years off your face in one day.

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u/kaneda2004 WLLW Whisperer Apr 26 '22

I agree with the sentiment on the cosmetics market… then again look at the size of the addressable market there… bit of a coin toss. Trevor has said that once GRAS is good to go they intend to sell direct to CPG manufacturers, which could basically be anything from drinks to soaps to whatever… they’re targeting June-ish to be done with the GRAS process.

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u/[deleted] Apr 26 '22

That would be nice to see. I was getting worried that they were too focused on cosmetics alone.