Question on Canadian Facility and CashI've been tracking SNN for a while and its getting to a price which is very enticing, i just want to get clarity on 2 things, hopefully you guys can help out
As at December 31, 2017, they had about 12M in cash + 2M receivable. in 2018, they paid 3M for FSD loan and closed 28M bought deal. With annual burn rate of 8M, this leaves about 31M for construction
1. Cathedral City Build = As i understand, construction is undrway with outerframe nearly complete, and the interior is left to do. They expect to complete by june/july with first harvest in September. At YE 2017, the Construction in Progress spent was 6M. As per MDA, it will cost 60M for phase 1. So they would need 54M to finance construction. Did they get a construction loan? since the recent 28M bought deal is for WC and canadian facility.
2. Canadian Facility = They just bought the land for like 7M, so that takes a bit of the 31M away. Assuming phase 1 will also cost about 60M, they still need a lot of money unless they are using construction financing. but i would have thought this would be disclosed? Closing is in June. and they need to start supplying canopy Jan 2019... how is this all going to come together?
there must be a bought deal of some kind on its way, justifying the share drop?