RE:RE:RE:RE:Don't get me wrongDo you have a source for this comment, " the stocks gummies have gone from number one in California down to number 5 or 6, so either things don't seem to be looking up, or the competition has outdone them in 2020 and they've not been able to hold their position"?
I'm curious because last week Leaflink put out info recognizing Plus's gummy as the number one seller in California. Maybe leaflink is wrong, I don't know, I'm just interested where you get your information.
Leaflink Plus news release The assertion that Plus did not announce the partnnership with the company in Europe is not correct. The press relase can be found on Plus's website and it includes a comment from the CEO.
Europe deal on Plus website I don't know how much trouble Plus is in but I don't think they'd be announcing a european expansion right now if they were going to default on their debentures next month. I think you are right that there will be some dilution though. They had almost 13 million USD in cash on thier balance sheet at the end of Q3 and they owe roughly 20m USD. I assume they pay back some portion of what they owe out of cash they still have, raise some further through a bought deal private placement, and then amend and extend the remaining debt.
It won't be pretty but i don't think it's going to kill the company either
GLTA
TaoTrader1 wrote:
Feb 24th it is then, for the debenture meeting. They are still not profitable, so will have to come to some agreement with creditors about the repayment of the $25 million debentures. This makes the stock very high risk. What happens if the creditors won't extend the repayment dates? In the meantime, the stocks gummies have gone from number one in California down to number 5 or 6, so either things don't seem to be looking up, or the competition has outdone them in 2020 and they've not been able to hold their position.
So they seem to be in an interesting, if somewhat difficult, position at the moment.
They have signed to start selling gummies in Europe, so are they going to transport them there, or start producing them there, we don't know.
What is worrying though, is that PLUS management does not seem to have reported this to market, or at least, I've not seen it. We only know this because the online European sales portal has reported it.
I'm starting to wonder if this company is beginning to appear less than professional, and hasn't kept up with the emerging junior cannabis companies in the USA.
So what has the management and directors been doing.
We spoke with there consultant Invesotr Relations company, who seemed more keen on trying to get us to invest in psychodelics companies they represent, than PLUS, which was a worrying sign for us.
The problem with extending debenture debt, is that it creates more debt in the future at a higher repayment price - a big problem, which can compound itself until a company becomes insolvent. I get a slight sense that the company directors have lost a bit interest here, or have lost some momentum, but I could be wrong.
They locked themselves into gummies, but everyone is creating gummies now, it's easy, and all the other companies also have vapes, and tinctures, and suligual sprays, and patches, and drinks, and a dozen other ingestion forms, while poor old PLUS seems to have been left with gummies and some chocolate brownies. I wonder how the debenture creditors are viewing this, and whether they are will to extend, or will try and call int he debt.
My gut tells me the creditors will be coerced into extending the debentures our to 2023, but they won't like it, and won't be pleased. However, if they are really risk averse, given the current COVID pandemic situation, then things could get a little difficult for PLUS.
The key takeaway here right now, is that their gummies are not unique anymore, and the company has not expanded beyond that to become vertically integrated.
Basically, it's stayed a stagnant company during 2020, while others of similar market cap have diversifited and grown and raced past it.