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We-- when I was brought in, I was asked by the board to guarantee that Cover is a multiyear development story with a course to earnings, right? So for me, task one was to make certain that we had the appropriate result coming out of our manufacturing properties and also not have a lot of vacant coverings or SKU stocking out at retail in Canada.
I inquired to increase top quality to ensure that we can boost consumer pull over time, which includes the THC component, as well as the group has actually reacted well, but it takes a while for that to pull-through at retail. So you're not even always seeing the outcomes of the work that we've done on shelf, at a retail yet (best awnings).
That work is still in progress. black awning. And also as Mike stated, we really hope to have some points to talk concerning on our following profits call. As well as so-- and after that last but not least, I also asked to not develop stock so that we can have a lot more eye-catching gross margins if we placed a lot more throughput with our plants, but we would certainly simply be constructing supply.
I assume from here is where-- we have some job to do. As well as Mike, I would certainly like you to perhaps go through an integrate in your mind from where we finished in the quarter from a GP point ofview as much as approximately our margin target.-- Chief Financial Police Officer Yeah, I assume really taking a look at the 7% gross margin reported in the quarter, I think it's simple to bifurcate out between quantity influence on lower manufacturing quantity versus remarkable tasks that return to execution.
And when you adjust for that and look totally at what need to have taken place for the quarter simply based on those impacts, that brought us to around 17% or 18% margin for the quarter. And also we assume that's a good proxy of what to expect over the next quarter or two.
The other point that dragged our margin down is really just executional products. So obtaining our pack days right, to make sure that we can deliver product with enough shelf life prior to it mosts likely to the district (balcony awning). There were some production difficulties in terms of obtaining the phasing of assembly line up in such a means that permitted us to provide for sufficient service life.
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Which's where the complexity of our procedure comes into play, and this is where the SKU justification is truly supplying us with a much easier structure to run our supply chain off of. So my sight is when you consider the supply chain in Smiths Falls, we plainly have a massive facility.
-- BMO Resources Markets-- Expert Thank you. Really handy. Your next inquiry originates from Andrew Carter from Stifel. Please go on.-- Stifel Financial Corp.-- Expert Good morning. I just wanted to ask in kind of going after the change with Acreage. I appreciate the Home Page prospective reduction in dilution for Cover as well as the downside security below.
market, listed below your kind of 10% to 15%. I guess provided the interest by Cover in seeking other alternatives along very little job done to day by Property, could you aid us comprehend the step-by-step commitment here of at the very least $87.5 million versus kind of letting this agreement run its program and also potentially having full flexibility to pursue various other options? Many thanks.
They have a really solid plan to correct those drawbacks, and we feel respectable regarding that strategy. I 'd likewise state, Andrew, that the initial deal left really little wiggle area in regards to outs. Therefore it had not been as easy as letting it play out and also leaving. It was actually the difficulty for us and for the Acreage group was to actually recraft a bargain that would certainly offer them the maximum-- the highest possible probability of success because the various other scenario where they they type of hopped along wasn't palatable to Acreage and their shareholders or Canopy and our investors.
upon permissibility which incidentally I think, is coming faster than plainly, people thought it would perhaps a year back. And also we're currently seeing the advantage of having our brand names in the UNITED STATE market, as well as I can't wait to obtain our 2.0 items in the market. So I believe it was I believe it was the way to create a genuine success out of the initial plan that we had with Property. balcony canopy.
-- Analyst Many thanks. I'll pass it on. Your next inquiry comes from Bryan Spillane from Bank of America. Please go in advance.-- Financial Institution of America Merrill Lynch-- Analyst Hey. Greetings everyone.-- President Hey Bryan.-- Financial Institution of America Merrill Lynch-- Analyst I wished to follow-up on Vivien's concern earlier simply about value as well as prices.
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So taking share from the illegal market? And after that exactly how much of that could be balanced out from a profession below the extra value-added product into the worth section? So I'm just attempt to get an understanding of just what that trade-off might be in between gaining share however also potentially it cannibalizing your existing business?-- Principal Exec Policeman Yeah, so like it's a strange market when you consider that.
I think we're just stating we're taking share pop up beach canopy of the value market that visit our website already exists. I additionally believe that we remain in our infancy as a sector, Bryan, in terms of trading consumers up and also chatting to them regarding the distinctions in-- this isn't-- there's been a lot of conversation on the marijuana space regarding does it finish up being an asset organisation? Well, this isn't-- we're not buying automobile components right here.