Pure Global Cannabis Inc PRCNF

BOOM

[TheAutist]

Financing is here!

https://finance.yahoo.com/news/pure-global-reiterates-manufacturing-approvals-211000541.html

[ShinyGlass]

FUTURE IS THE BRIGHT FOR PURE !!!!

[JMark80]

Highly dilutive. Alumina Partners is suspect af. They've apparently made a number of large investments in pos cannabis companies.

[AREKAY1]

It’s dilutive by definition, but doesn’t the ultimate sh impact depend on how Pure executes on its business plan?  Also, any more context for “suspect af”? I’m actually not disagreeing with a word you’ve said just trying to better understand it. Thanks. 

[Toelder]

Isodiol, MYM, DYME, Matica, Beleave. Take a look al the SP of this companies.  @JMark80: What are your thoughts regarding this financing? Is it different than a death sprial financing? 

[JMark80]

Probably not. I don't like Alumina, or the size of the financing.

[Jonasss]

This is just an emergency expensive financing that will be used to provide may be a couple of millions only until the real non dilutive construction financing is closed. They were trying to buy time. They can't mention the new financing in the works until it is approved which is expected very soon. Don't forget that CEO has 26M shares which is great because he wont be allowing SP go down

[Toelder]

Yes, but look at what happened to all those other companies that did a deal with Alumina Partners... Not really good. I read on the internet that Alumina Partners is known for their death spiral financing. As an investor I feel a little scared that this kind of a company is affiliated with Pure. How do you think they (Alumina) gets their money?  I guess by dumping it ons us shareholders

[Jonasss]

You can't apply what happened with other companies on PURE just because we used same financier. There are lot of hidden information that led to some companies failure and not just financing. It is tricky when it comes to financing because you want to start generating revenue quickly so that you don't use much of dilutive financing. But this is not the real financing they have another one

[JMark80]

Then why is Alumina allegedly committing to $28mm?

[Jonasss]

28M is the max PURE can get from Alumina but that doesn't mean that all the amount will be consumed. They can use only 1M or 2M or less or more as needed. It's like a credit card with a limit of 28M that you use for emergency and not to buy a house. So the offer from Alumina according to PURE situation is limit of up to 28M. I know that only a small portion of this amount will be used

[AREKAY1]

This looks right. I share JMark’s skepticism re Alumina— but this is “metered” financing — everything will depend on how much funding they take from this source and what they do with it. Jonass is “exuberant” but has been pretty accurate — hope so with respect to this alternate financing. Any sense of where they are on revenue generation (I know Q3 coming shortly)— just wondering overall. 

[AREKAY1]

Consistent with Jonass’s take, Mel just characterized this as a “backstop” pending cheaper financing ahead. We’ll see, but that’s directionally positive. 

[JMark80]

You may be correct that it's structured as a drawdown equity facility, but press release doesn't mention that.

[JMark80]

As long as draw down is at Pure's discretion, then I'm ok with that. I assume they arranged $28mm as a worst case scenario, in case they can't attain better financing.

[AREKAY1]

I don’t know either. I took that from the “up to” language and the series of private placements. For sure, anything above 8M is contingent. That only kicks in when mkt cap reaches 32M (which is a good thing) and I don’t read the additional amounts as being automatic. I’m not seeing the hallmarks of death spiral financing (eg convertible debentures)— but I’m not an expert. 

[Jonasss]

You got it.

[trader059]

This post has been removed in accordance with Community Policy

[Jonasss]

If you read carefully the 28M is not a fixed amount that PURE will have to take. See below it says AVAILABILITY OF UP TO 28M which means it is not decided yet how much PURE is going to consume but these amounts are available for 24 months. "Pure Global is also pleased to announce that it has entered into an investment agreement with Alumina Partners (Ontario) Ltd. (the Investor or Alumina