Bullboard - Stock Discussion Forum Chalice Brands Ltd. C.CHAL

Alternate Symbol(s): CHALF

Healthcare Cannabis

Chalice Brands Ltd. is a U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution. The Company has 12 retail stores in Oregon operating as Chalice Farms, Homegrown Oregon and Left Coast Connection and is distributed nationally through Fifth & Root. see more

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CSE:CHAL - Post Discussion

Chalice Brands Ltd. > NEG. working capital & may not be able to pay Obligations

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Post by Here4thekeks on Oct 23, 2022 6:30pm

NEG. working capital & may not be able to pay Obligations

Chalice Brands has a negative working capital and may not be able to pay financial obligations
Chalice Brands Debt To Cash Allocation
https://www.macroaxis.com/invest/bond/CHALF
The company has accumulated 11.56 M in total debt with debt to equity ratio (D/E) of 0.69, which is about average as compared to similar companies. Chalice Brands has a current ratio of 0.6, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Chalice Brands until it has trouble settling it off, either with new capital or with free cash flow. So, Chalice Brands' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Chalice Brands sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Chalice to invest in growth at high rates of return. When we think about Chalice Brands' use of debt, we should always consider it together with cash and equity.