RE:RE:Adastra triples capacity So Adastra is entering the same extraction space with the same off-the-shelf tech as Valens and Medipharms, who are actively transitioning into product manufacturing due to margin collapse in that space. Wonder how they'll do...
------------ From Adastra July MD&A--------------
Liquidity risk The Company manages liquidity risk by maintaining an adequate level of cash to meet its ongoing obligations. The Company has been successful in raising equity financing in the past; however, there is no assurance that it will be able to do so in the future. As at March 31, 2020, the Company had working capital deficiency of $4,097,131, and requires additional financing to meet its business objectives. [$3.5M raised in july]
Ongoing Need for Financing The Company’s ability to continue operations will be largely reliant on its continued attractiveness to equity investors. The Company is expected to incur operating losses as it continues to expend funds to develop its business operations. Even if its financial resources are sufficient to fund its current operations, there is no guarantee that the Company will be able to achieve its business objectives. The continued development of Adastra will require substantial additional financing. The failure to raise such capital could result in the delay or indefinite postponement of current business objectives or the going out of business. The primary source of funding available to the Company will consist of equity financing. There can be no assurance that additional capital or other types of financing will be available if needed or that, if available, the terms of such financing will be favorable. In addition, from time to time, the Company may enter into transactions to acquire assets or the shares of other corporations. These transactions may be financed wholly or partially with debt, which may temporarily increase the Company’s debt levels above industry standards.
Mortgage Payable The Company maintains minimum interest only payments of $16,307 per month. As at March 31, 2020 the total nondiscounted remaining scheduled payments related to the mortgage including interest payments, total $2,625,373. Total interest expense during the period ended March 31, 2020 was $16,307.
Issued and Outstanding As at March 31, 2020 the total issued and outstanding share capital consists of 110,056,904 common shares. As at the date of the MD&A, the total issued and outstanding share capital consists of 124,248,511 common shares.