Post by
HighGuy420 on Dec 04, 2018 11:37am
Thoughts on solvency risk
What are their financial committments? Because with their new stock price.and $120M market cap, just wondering how long this can last. Especially if they are doing: R&D efforts, marketing efforts, compensating executives and new talent appropriately, considering to build a grow facility (or rely on supplier agreements), money owed to suppliers (partners), etc.
I am less worried about competitors like Supreme Cannabis who have a market cap of $450M. Just questioning the runway time to turn things around.
Comment by
betsonvalue on Dec 04, 2018 1:27pm
Likely sinks to ~60M market cap
Comment by
HighGuy420 on Dec 04, 2018 2:15pm
At 60M market cap then it likely goes insolvent! Salaries alone are a few million, plus facilities and R&D work. New Branding, Packaging and Marketing Campaigns are like $5-10M a year. Unelss they issue more stock!
Comment by
gkmackdadzzz1 on Dec 04, 2018 3:16pm
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Comment by
betsonvalue on Dec 04, 2018 6:55pm
Dilution happens for many reasons. One of which is lack of cash flow. The company pays suppliers and expands by issuing shares. You should always expect some dilution in start-ups. Doesn’t mean it can’t dilute and still bring shareholder value. Pay close attention!!
Comment by
gkmackdadzzz1 on Dec 05, 2018 3:55pm
This post has been removed in accordance with Community Policy