Response to questions on EarningsSaw one or two of you asked my thoughts on the latest earnings. Disclosure, I haven't had time to properly assess the full MD&A and Annual statements.
From what I did peruse though, looks like solid recreational revenue growth. I know revenues in general were down from June/19, but the majority of that was wholesale (16-17mil if memory serves), and only 2.2mil in rec. So that's a very positive developement, it would appear as though they are gaining traction, and my 30% estimate on that growth for rec was almost dead nuts.
The operational costs initially were a bit of a shock, but digging in I feel as though almost 20mil are what I would consider 1 time costs. I also feel that the financing costs should come off about 7mil, so overall I could see reductions in costs going forward, and I would expect annualized operational costs to come in under 45mil for FY21.
My overall impression, if they execute and continue around 30% Q/Q rec growth, they will be break even by Q3 of 2021. I expect overall expenses to come in between 50-60mil, as well as revenues for the FY21.
As for the comprehensive loss, 8.8mil in share based payment to Blissco owner, 3.5mil in restructing, 60.9mil in goodwill, etc. About 90mil in 1 time charges overall. I see this as the companies low point.
I don't see any reason from the scan I've done to warrant anything like a panic sell. Q1 is going to be a make or break quarter for them. You will be able to interpolate a lot of information from the coming quarter, as the transition to B2C is seemingly complete.