Tweed announced a quarterly profit of $1 million recently, but the company, like all of Health Canada‘s licensed producers, is not cash-flow positive.
Tweed chairman and chief executive Bruce Linton thinks positive cash flow will be achieved by 2016.
“This is a large production platform with a lot of requirements to create inventory and have it ready,” Linton said. “But once you do, your ability to convert that [product] from inventory into value to the patient and to the market is pretty quick.”
Linton is happy with the current growth rates but noted that a lot of patients are still buying from the “grey market” of retail dispensaries and compassion clubs.
Tweed, the country’s most prominent licensed producer, has around 6,000 customers. The Smiths Falls, Ontario operation said it expects to become profitable once it reaches 10,000 to 11,000 patients.