RE:RE:$4.03 Closethetis88 wrote: My view is that Sunniva will run out of cash before the first quarter in 2019 ends.
Cash now... 11 million
Cash flows out to March 31 2019;
1. loss for remainder of 2018.... say 2 million
2 loss for first quarter 2019. ... say 6 million
3 new purchase of pods and warehouse, together... 3 million
4 rent for California building first quarter ... 3 million
5. air conditioning equipment for California per recent prospectus..... 7 million
6. ramp up costs for proposed production ... 2 million
7 additional staff for pre production and the new acquisition... 2 million
Cash out-- 25 million total as above, vs cash on hand of 11 million per MD&A
Sunniva raised 23 million cash just a few months ago, but spent some 13,539,000 dollars on
buildings and equipment, which I assume was almost all in Canada. Financials at Sept 30, showed accounts payables of 10.7 million with 3 million of cash on hand. This is where their money went. To pay the payables for a white elephant building in Canada. What a waste of cash!!!!
Who knows, but Sunniva MIGHT be able to do yet another private placement which I think would have to be announced in late January to get funds in time to stay afloat. However, they would be lucky to find any investors not burned by prior deals. They might raise 5- 10 million. All this does is put off the date that Sunniva would go under, in my view. . This is pure speculation on my part. There is considerable risk, in my opinion, that a third PP wont happen, and then they are cooked.
I don't think Sunniva cant be saved by revenue from production in their new building. As I read it, regulations restrict them to using 22,000 square feet of space or 5% of the building. In my humble opinion, if they try a scheme that allows them to use more space all their competitors that played by the rules , then they will surely complain to the regulators. I don't think they can take the risk with their licence.
By the time they can sell their first harvest it will be over, as I think they will have run out of cash.
I predict a slow drop from 4 dollars a share to 5 cents in May/June, with perhaps one last kick at the can, a private placement in between.
Realize almost all on this Board see the company way undervalued and masses of profit in 2019 . I am sorry, I don't see it that way at all. I will not come back on to post again, until stock price is under 3 bucks and see whats up. I am sure many will call me a basher and assume I will never come back as stock will never go below three. I am just trying to state the facts not the California dreams that most here go on about.
They said their burn rate is .5 a month. They need 1.5m for Canadian facility. For the US they need about 15 to 20ish, but most of the equipment and IT supplies for phase one is financed. So most of the working capital is accounted for. They will need probably one last raise to hold them over until q3 revenues start. And for further distribution investments. From what I gathered from the call anyways.