RE:RE:RE:RE:Cornerstone on Q3 resultsOkay so here's the good news: you're wrong on everything. Going to respond point by point.
1. The Canada plans have not been abandoned, only modified, and they haven't burned through a ton of cash on it. They have been investing conservatively, and (literally and figuratively) have been building the foundation for the highly profitable cultivation + direct patient sales model that is coming online in 2019. There are not going to be any private placements / bought deals before the spinout occurs. A pp/bd now would screw up the spinout process and unnecessarily delay everything. The company doesn't need it, doesn't want it, and isn't going to go for it anytime soon. Based on direct communications from the company and on logic.
2. NHS was never about generating profits now (and it never did turn a profit). The goal was patient acquisition, which they have done successfully, having reached 105,000 at present. If the current model stayed the same - generating revenue strictly by writing prescriptions for the product of other LPs - then the sequential quarterly decline may have been worrisome. But since they are switching to an entirely different model soon - generating most of their revenue by selling their own cannabis directly - this is less relevant.
3. Thank you for your service. Secondly, the LTYR acquisition is not about its own current revenue. The significance of this acquisition is that it brings Sunniva's products to the market and gets them on an initial 120 dispensaries across the state, and covers warehousing, track and tracing, targeting, testing, transportation and all the other essential components of a distribution system, enabling Sunniva to realize their profitable seed-to-sale strategy. And in the age of Colcanna and Marigold, are you seriously going to complain about the price? $8m in shares? Do you think it would have been better if they had signed a wholesale distribution agreement and lost 30% of the margins on each product sold? Or what, used Uber to deliver the products to stores themselves?
4. I have no idea why you're here and not on the Sunniva executive board, since your understanding of the business and specifically of the business in California seems so much better than theirs. Instead of them wasting a year dumping their product wholesale to "learn the market", why not hire you as their mentor and guide?
5. You know, a big part of a brand is "branding" and we've seen none of that. What's laughable is not the brand, but your assumption that you can call it that based on the very little info we have received months before it's launched. You say thus far we have virtually nothing to go by... of course, that doesn't stop you from declaring it a failure or assuming the worst just because.
Now, at this market cap, downside pretty much means total company collapse. So when you say the risk/reward looks ugly, do you mean that you think Sunniva is more likely to go bankrupt in a month or two, than it is start cultivation in America's largest, most advanced cannabis greenhouse, in its number one legal market? And launch and distribute 100s of thousands of its ultra-premium extracted products?
I'm sorry but these all sound to me like feeble attempts to rationalize and explain what is essentially a ridiculous, unreasonable situation in terms of SNN's stock performance. I'll say it clearly: there is no good reason for SNN to be as low as it is. None. And if you find the Discord chat to be too bullish, you are welcome to go over there and make your case for why the bulls are wrong. Nobody is going to silence you and you'll be free to rant to your heart's content.