RE:RE:RE:RE:So Much Wrong With This A private placement at this time can be used by investors to explain things in 3 possible ways: 1) That they are having cash problems; that 2) They want to buy the biomass from the upcoming harvest so that they don't have to share any of the oil or proceeds; or 3) Both.
No matter which you beleive, the one thing that will help the situation is that they sign a contract (or two) to sell their oil. It will be very helpful psychologically to investors for NL to show that they can actually sell their main product to the market for actual revenue.
NL has said a few times that they hope to be at production capacity by later this year. It's important to differentiate- Does this mean that they will be selling their oil as well? - Or just that they will be extracting at full capacity? They could potentially be processing at full capacity but not be receiving any revenue yet.
NL has said that there is interest in selling their oil as vapes. I this is an excellent idea because it allows them to sell their product to companies that don't have a processing license - just a sales license is needed. A lot of their potential clients don't have a processing license yet.
Nextleaf has shown that they are very capable of operating leanly and efficiently. If they show that they can sell their oil to the market - then there is real provable evidence to investors that NL can have the best margins of any oil producer in Canada.
They have shown that they can form partnerships with other companies from these last two deals. The next step is to show that they can deliver on their primary business function - to sell oil for revenue. I Beleive NL knows this and hopefully they have some buyers lined up already.