BellRock Brands Inc C.BRCK.U

i'm out

[Benedictus]

I like this company a lot and longer term I may be proven to be a fool for selling here but my current concerns are:
- revs and ebitda projections on the investor deck appear to be pie in the sky numbers relative to actual reported numbers so far this year. I cannot see this company generating any ebitda for several years based on current growth pattern and that means multiple raises. investor deck projections just appear flat out wrong from my purview.
- i never liked the share structure this company came to mkt with. it was from the beginning, a slap in the face to investors... 176M fully diluted is commonplace in the mj sector (maybe even low) but it is not shareholder friencly. I overlooked it because of the ebitda projs on the deck, which I now no longer consider valid.
- cash burn rate is very high due to aggressive expansion and they are low on cash and so will probably be forced to do a raise sometime in the near future (probably 3 or 4 months). 
- mj sector is in the toilet and if it continues to stay that way, the capital raise may be quite dilutive...and as i already said, mgt apparently does not concern itself with the share structure based on the way they closed.

having said all that, Chuck has a really good team, great products and is making fantastic deals so it is entirely possible I'm selling near the lows. That's what makes a market though! all we can do is make decisions based on what is right in front of us.  all imo