Funding Good News / Bad NewsThere is lots of nonsense on here today.
Let’s review:
· Aphria doesn’t need the money but took it anyway and added to the balance sheet
https://www.bnnbloomberg.ca/aphria-lines-up-100-million-investment-as-ceo-touts-balance-sheet-strength-1.1379317?fbclid=IwAR2ep_WMlTUqeJmXOk39Fb_KXX75c_DNur5UTFJzhUYtsajXZkbyzmIPQHc · Jefferies already made a statement to BNN that this raise supports Aphria’s business structure being a success.
· Many other LP’s will go bankrupt soon, but Aphria is cash rich to weather the storm.
· Irwin has set a floor and this likely will not go much lower than it is currently.
· Jan 31 deal is closed, they could announce what this is going to be used for any time. Some are going to try to get cheap shares.
· Will it be used for a JV in Europe or Canada (perhaps some sort of retail strategy)? It is quite coincidental that the raise came right after EU GMP.
· It is very difficult to keep secrets, eventually someone is going to find out who this investor is. What do you think the response will be to the SP if it’s a company like Bayer or some other huge company? What do you think would happen to the SP?
· Yes it’s short term dilution which sucks, but this is not do or die raising like Hexo/ACB where the situation is dire.
Watch out for short bashers spreading FUD, it even gets as bad as fake news articles or stories about the investment being from Andy D and trying to dredge up bad history.
Cash is King, and Irwin is going to be the Cannabis King of Canada sitting on a pile of cash to execute as others fail.
Stay strong and positive longs