RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:lol that's a good oneWell written post, refreshing, certainly better than my claims to call the office. Certain things Ashleigh asks about, specific details, just seems like that is the only way to get those answers.
I think the conference call recording thing is a weird focus topic, sure it's easy to record and share but not many juniors do it, very few. Mainly because they are still talking about projections often and not past facts and so when projections don't come true hard to have that recorded. Same as investor decks, the early versions disappear. just part of the new business process and it's a really hard process where even great companies and people get pushed around up or down and unanticipated things inevitably happen as in all business but more especially early on.
The patent issue is a huge pain but manageable is my take, happens all day everyday and why the Past Art term exists. Significant revenue when it comes....echo echo would certainly help. Does bring up a few questions though of why not team up? why are both parties pushing for the big win when there is a very large pie they can work together to partake in? my answer is either a big drawn out hoopla to drain investors money in failed companies rolling assets around to the new company to pump OR the gardens really work, the sector is just getting going, quality and price are going to be everything moving forward and nobody is doing it well yet and so still the very big potential it has always been; albeit taking much longer than anticipated. They did build the facility and are ready to pump out a lot of product fast, efficient, and low-cost high quality. The machines have been used in black market and been around for a while and is why I invested in the 1
st place. Those pictures easily found through google are from 2006 and have a lot of bud growing in a small efficient space. You might be right about the Swedes not liking the lawsuit but I didn’t buy this stock for the JV, it’s blue sky to me.
Financial/Revenue - February is coming quick and unless 1/3 a year production sold out of Markham and the services division bills out millions by End of Oct which I don't believe they did, it's not going to jump much. Knowing Edmonton was using room 1 for test after test and then room 2 and 3 just getting going last quarter 2019 I have no idea what to expect for KG output sales for Edmonton by even end of Jan. If they are trying to do what they claim which has not happened, there should be service revenue to JV Biocare as well as bare minimum 1/3 production out of Markham (500kg to 700kg) and maybe 500kg out of Edmonton for March report??? Certainly, far below the numbers George was stating summer 2019 but if achieved looking good.
The statement about the stock price cratering from 2$ is not fair because it never should have been that high. NOWHERE near that high, even $.50 would have been a high valuation 2 years ago. The Cdn micro cap bubble at the peak of Cannabis and Crypto hype was unbelievable and will likely never be replicated unless 2 new sectors are created again at the same time that Canada supports where hundreds of millions of appeared value are created in just a year or 2. Was not sustainable and was never going to last.
Board changes – certainly interesting and I agree concerning somewhat, the new people I mean. They do seem young and a number of the companies Mr. Chaudhry has worked with have had struggles. Don’t know much about Bill but agree no movement on the Indigenous front in a long while. As for the other 4 or 5 older micro-cap seasoned group of big money well, don’t see how they were helping; but I’m not that smart. Several of them are on a number of BOD or acting presidents of struggling companies with years of experience of a failed attempt here or there with assets being bought and sold to other start-ups. If RQB is truly going to make it and be big, it doesn’t need micro-cap mover and shakers to help create an appearance of value, they need hard working people that actually create value and a business that lasts and grows. It was all that big money that helped it get to $2 when it never should have been there along with all the rest. Big shake down of retail and they are all smiling.
It’s not an excuse but it’s a fact that many of the juniors are in the same state. 60 to 90% drop off the stupid high prices they all hit. Many are trading 2 to 3 times RQB market cap with even less revenue and much less potential. Another interesting fact is the short attack beat down on RQB easily tracked through websites that offer such data. Why the targeted attack, very big question? I very much hope they don’t do another PP and fill more short orders with new shares.
I will finish by drawing attention to the base business of RQB Canada. Forget the JV and maybe more JV’s and the royalties of selling machines to all these callers George talks about. Forget the young BOD’s with I would say much cleaner records. Forget the lack of revenue because all new businesses don’t have revenue until they are up and running which really was in the last 6 to 9 months for RQB and it takes that long to get crops going and tested. Forget the lawsuit which if they do nothing but develop Canada should not be so bad (Counter Claim was pretty big and makes it feel like they believe strongly in their position) Forget the Light development, the Microbes development, the McGill relationship, George on BNN regularly either setting himself up to look pretty bad as a failed Cannabis company person or a big success with a great TV history, and lastly the million + in stock options for promo that they believe will one day pay off when the stars align
And what are we left with
- Markham up and running at stated 2000kg + per year
- Edmonton fully built and machined up with 5 rooms waiting for amendment and 3 rooms running with roughly 2,700kg per year production currently producing
- So up towards 5,000kg output capability at this time moving to 10,000 with a piece of paper from HC. Not an easy thing to add 5,000 kg of production but they have it sitting there waiting to be filled.
- At $5 per gram that is $25 million in revenue per year if they just maximize their current production capacity and moving to 50 million with again a piece of paper.
- Current Market Cap = 13.6 million
Lastly, this is not a new business idea or sector. This is an old sector worth ten of billions and it’s moving from illegal to legal. Add on the fact that THC, CBD, and the Cannabis plant can finally be thoroughly tested and so discoveries will be made creating future demand. The sector is a guaranteed win, just need some time and to pick a winner. Comparing to many others RQB still looks quite good in the junior space, maybe even the best.