GREY:ALEAF - Post by User
Comment by
Toweringmarson Aug 27, 2020 9:59am
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Post# 31459826
RE:Do you think they will issue more stocks to raise capital?
RE:Do you think they will issue more stocks to raise capital? I wouldnt worry so much about their runway when to date they've been using 32.500kg's of capacity vs our now licensed 128,500kg's. We're about to see a massive drop in CPG across the board (to be THE lowest cost producer I would say... I mean its arguable that there are 3rd world countries in the southern hemisphere growing maybe a cent lower, but not to this scale or quality.) Have you ever smoked Jamaican sticks and stems? I mean weed? Its gross.
This isnt the same company today as it was Q1. It just flat out isnt. Along with the production scaling up, so too will our revenues. Surely our costs will as well, but we boast one of the best margins in the entire industry (PRE 2.0). Imagine once we start selling higher margin products at scale? Cmon now.
To any of the tinfoil hatters that paid $4 a share for this, this company is now bigger, stronger, and faster. And LICENSED. We're so much closer to being worth $4 now than we ever we're in past years, yet the same people are trying to cast doubt. Whats the deal? Scared this will succed?
We have more than enough runway to bring us to the point where we'll be operationally profitable and adding that money to the piggy, rather than worrying about getting financed. Even with paying off the debentures that come do. Will there be hiccups along the way? its quite probable. Is this play the best in the cannabis space? I'd say.
And if one cant stomach a success story, then buy one of the majors trading at high forward multiples, and ride it out threre for a few % points. OR you can park your money in a rather safe bet and make %400. Worrying about momentum the shorts get by hammering it in a time where most are on vacation isnt healthy. We're not in it for the pennies guys. The choice in the end is yours. If you need someone to hold your hand, wear some gloves.
MrOptimization wrote: Curious about the correlation of net losses to market cap.
Because the stock price has dropped so much, it's not a 1:1 comparison. As cash levels raised from earlier stock issuances were higher than market cap today.
Looking at the annual statements, combined with 2020Q1 and Q2 Losses; Alefia has lost $75.73M in Net Losses since 2016 ($1.45M = 2016, $5.94M = 2017, $18.53M = 2018, $39.61M = 2019, $6.15M = 2020Q1, $4.05M = 2020Q2).
Their current cash position as of 2020Q2 is $57M. I'm just curious because if they issue more stock for cash, it will likely be at a discount.
https://www.marketwatch.com/investing/stock/aleaf/financials