RE:Question on Canadian Facility and CashNikopain wrote: I'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?
thats great you have been tracking it, but have you been reading and watching what you can on it?
1. Cali operation: barker pacific is the owner of the property, who is building the facility and sunniva is leasing it back from them.
2. Okanagan operation: teir 1 bank financing is said to be the way they are going to fund construction of the facility, likely correct on a 50-60 million loan to build facility. But no management has been adamant about no more dilution,
My opinion: I think the market is being cautious here, mid June is supposed to be the announcement of the financing terms which I think will be when we see this start to shine. As long as previous promises are delivered. This week might see a rise with Q1 financials being released, Sunniva is already generating more revenue per quarter then Organigram, a company worth roughly double by market cap!... Without any production!