A post on The Cannalysts' page I highly recommend The Cannalysts page on Reddit. It is moderated and discussions are much more mature than on here.
"I am not surprised with this one, their war chest isn't nearly as robust as most comments I see on here suggest. They weren't desperate for cash by any means but if your CFO let's you get to that point he has failed, this raise ensures they won't get there. From the last financials:
| Cash | 497,694,000 |
| AR | 60,695000 |
| AP and accrued liabilities | -117,161,000 |
| Remaining Capex | -100,000,000 |
| Net Cash | 341,228,000 |
341M looks like a big number but remember there is also the wildcard of the Aleafia settlement (one would think they need to return at least the deposit which was something like 20M IIRC. Who knows if there could be any damages on top of that) and that they are burning 40M of cash on operations per Q and I fail to see how this doesn't get worse before it gets better with the DD ramp up barely even getting started as of the end of the last remaining Q as well as another 80M in debt to service. It would be a service to subscribers if GoBlue touched on the difference between EBITDA positive, Operating Income positive and Operating cash flow positive. I find the last one to be the most important one in this space given the capital crunch but I see zero discussion on it. I don't think it takes a rocket scientist to understand that there is a massive difference between these metrics given that last Q Aphria posted the following amounts in each category:
EBITDA (excluding voodoo): +1,903,000
Operating Income (excluding voodoo): -18,664,000
Operating Cash Flow (no need to back out any voodoo in this number because there isn't any voodoo in it to begin with): -40,372,000
If you understand these metrics and the difference between them this raise shouldn't surprise. They needed this to shore up the balance sheet, this isn't loading the gun for some big cash acquisition. The balance sheet is now shored up and they have what they need to survive and thrive (well, until all that debt matures anyway but if they are thriving by then it shouldn't be an issue)"