Q3Finally had a chance to take a look at the Q3 numbers.
Ouch. Very disapointing and way off my projections. Obviously not having the new dispensaries open and running affected things. This indicates that the existing dispensaries are maxed out and not likely to improve sales. I'm not angry, as they are immensely profitable, but we need more functioning dispensaries to move this company forward. The cultivation is sucking all the potential out of this company.
Most recent private placement is a TERRIBLE sign that things aren't going well. To raise money at this valuation seems desperate. I have to assume that they were forced to do this in order to complete their cultivation facility (bad idea in the first place) and would have run out of money otherwise (frightening). Since the cultivation facility won't earn anything for many quarters (if at all, I'm not convinced), anticipate another finanancing to get the cash to keep operating. I'm surprised they were able to find someone willing to drop $3+ million into this. Dilution is never good.
Though I was intially impressed with management's apparent business chops, I am becoming more and more concerned.