Newstrike Brands Ltd NWKRF

RE:RE:RE:RE:RE:RE:RE:Tell me why $HIP.

[goldman777]

VeritasVern wrote: Silk just to be clear on the warrants exercise plus actual shares including those from PP and the corresponding underwriters allowance. Currently there are about 484 million shares outstanding. The warrants wont get exercised until the share price is beyond $1.72. (good luck with that as sp is currently $0.69). Even if we assume they get exercised, you need to add about 62 million shares, 4.75 million shares for exectutive copensation, 2.1 million shares for Jason Redman, 1.0 million shares for Stephen Smith, about 545 thousand for the underwriters associated for the share offering. Add in another 60 million for the recent bought deal increase and 9 million for underwriters associated with that. The total equals about 625 million shares in float. Based on your math that would be $1.25/share which isnt even close to exercise the warrants. Also what exactly does HIP have in cash, as the currently burn rate/construction/marketing/salaries will eat away at that at a rapid pace before legalization. I would think they would need to do another share offering in second half of 2018.

Disagree with your assertion that another cash raise is coming. What is coming though are supply contracts and with our relatively low production cost structure the company coffers will be robust. If anything once the recreational launch is behind us and the sales begin I`m thinking we see the company create share holder value by participating in a share buy back program. I like this approach far more than the proposed share consolidation - a slow methodical share buy back to bring 25% of the float back into the treasury for redistribution at a later date if required. But realistically once the sector starts to see the real revenue numbers this company will be absorbed. Everything right now is based on perceived annualized black market value which in all likelihood is conservative at best. Todays news out of the HOC should expedite the final senate approval for roughly Canada Day, then provincial regulators tweak the final roll out and by Labor Day the industry will be bonafide - this is when the big money starts to roll in. Why sell here into the game of accumulation that is being played by the powers to be.