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We-- when I was generated, I was asked by the board to ensure that Cover is a multiyear growth story with a path to success, right? So for me, job one was to make certain that we had the proper outcome coming out of our production assets as well as not have so lots of vacant shells or SKU stocking out at retail in Canada.
I asked them to increase quality to make sure that we can enhance customer pull over time, which consists of the THC part, 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 also always seeing the outcomes of the job that we've done on shelf, at a retail yet (canitlever canopy).
That work is still under means. business canopy. And also as Mike mentioned, we intend to have some points to speak about on our next earnings phone call. As well as so-- and after that lastly, I also inquired to not construct supply so that we might have a lot more attractive gross margins if we put much more throughput with our plants, however we would certainly just be constructing supply.
I believe from here is where-- we have some work to do. As well as Mike, I 'd like you to perhaps go through a construct in your mind from where we ended in the quarter from a GP viewpoint as much as up to our margin target.-- Principal Financial Police Officer Yeah, I think really checking out the 7% gross margin reported in the quarter, I believe it's easy to bifurcate out in between quantity effects on reduced production quantity versus remarkable tasks that return to execution.
And when you change for that and also look simply at what must have occurred for the quarter simply based on those effects, that brought us to around 17% or 18% margin for the quarter. And we think that's a great proxy of what to anticipate over the following quarter approximately.
The other thing that dragged our margin down is truly just executional things. So getting our pack dates right, to ensure that we can deliver item with adequate service life before it mosts likely to the province (best awnings). There were some production obstacles in terms of obtaining the phasing of assembly line up as if permitted us to offer for websites sufficient life span.
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As well as that's where the intricacy of our operation enters play, and also this is where the SKU justification is truly providing us with a much less complex straight from the source structure to run our supply chain off of. So my sight is when you consider the supply chain in Smiths Falls, we clearly have a large center.
-- BMO Capital Markets-- Analyst Thanks. Really helpful. Your next question originates from Andrew Carter from Stifel. Please proceed.-- Stifel Financial Corp.-- Analyst Greetings. I simply wished to ask in kind of seeking the amendment with Property. I appreciate the prospective decrease in dilution for Canopy and also the downside defense below.
market, listed below your type of 10% to 15%. I guess given the rate of interest by Canopy in going after various other options along not much job done to day by Acreage, could you aid us comprehend the step-by-step dedication below of at least $87.5 million versus kind of letting this agreement run its training course and also potentially having complete flexibility to seek other alternatives? Many thanks.
They have a truly solid plan to deal with those shortcomings, and we feel pretty great regarding that plan. I would certainly likewise say, Andrew, that the initial deal left very little wiggle room in terms of outs. Therefore it wasn't as straightforward as allowing it play out as well as walking away. It was really the difficulty for us and for the Property team was to actually recraft a deal that would certainly provide the maximum-- the greatest chance of success due to the fact that the various other scenario where they they type of limped along wasn't palatable to Acreage as well as their investors or Canopy and also our shareholders.
upon permissibility which by the means I assume, is coming faster than plainly, individuals believed it would possibly a year ago. As well as we're already seeing the advantage of having our brand names in the U.S. market, as well as I can not wait to obtain our 2.0 items in the market. So I assume it was I assume it was the method to develop a genuine success out of the initial plan that we had with Acreage. balcony sun shade.
-- Expert Many thanks. I'll pass it on. Your following inquiry originates from Bryan Spillane from Financial Institution of America. Please go in advance.-- Financial Institution of America Merrill Lynch-- Expert Hey. go now Greetings everyone.-- Ceo Hey Bryan.-- Bank of America Merrill Lynch-- Analyst I intended to follow-up on Vivien's inquiry previously almost value and also pricing.
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So taking share from the immoral market? And afterwards just how much of that could be balanced out from a profession down from the extra value-added item right into the worth sector? So I'm simply attempt to obtain an understanding of simply what that trade-off might be between acquiring share yet also potentially it cannibalizing your existing business?-- Chief Executive Police Officer Yeah, so like it's an odd sector when you believe regarding that.
I assume we're just saying we're taking share of the value market that currently exists. I also think that we remain in our early stage as a market, Bryan, in regards to trading customers up as well as talking with them concerning the distinctions in-- this isn't-- there's been a great deal of discussion on the cannabis area concerning does it wind up being a product organisation? Well, this isn't-- we're denying auto components here.