RE:RE:RE:RE:Quick unscientific poll...simple yes or no...in your opinionErebus76 and THC - I agree with both of you, and THC, your concerns are mine as well.
Yes, net cash flow will be right around zero due to Debbie Chang's investment in October. That will overshadow a possible negative cash flow due to operations of around $23 mil for the year (my estimate).
What does this mean? I would expect financials to be released, a nice little SP bump, then a much more expensive round of financing to occur (read dilution) come end of March. I figure $6 mil Sep 30 cash, add $10 mil DC cash, then net cash outflows of $6 mil per qtr, which means at Jan 31, I would expect cash to stand around $4 mil which means a lot more is necessary. Thus, the hefty dilution since the SP will still be fairly low.
TAAT will continue to spend big $$ on marketing to counter BT's effort in the marketplace and more importantly to establish a hemp cigarette as a mainstream product. While margins are large, they are in line with the tobacco industry margins and will support the continuing marketing spend. The question is can they ramp up revenues enough this year to stem the continual dilution? Let's see what the numbers bring.....