RE:RE:RE:RE:RE:crazyHey thanks for pointing that out! You're correct, when I read the amendment I must have been confused. You are correct on all counts. That being said, they are still getting a fat interest rate, that if you consider the value of the debt as a whole, is very attractive. There is almost nowhere else you can get rates like that.
As for why would the "short" if they were long, they may not be. But they may be lending out their equity to short interest parties so they can collect a few points on the margin. This way they have others shorting the stock for them using the equity they hold. So they are making a couple percent on that, a nice fat percentage on their debs, and theoretically this can go on for some time.
If you are a fund, and you can generate 15%+ guaranteed interest off of one company, you do that all day every day. Cannabis is a volatile sector, and these guys like stable growth that they can control. Seems like a perfect recipe to me.
Look at the massive increase in short interest after the raises. At one point 1 in 4 shares was being shorted. I think the count on Feb. 22nd was 80+ mil in short.
Guys, just to be clear, I'm long here. I just think it will incrementally creep vs. explosive growth. I like the metrics, I like the restructured balance sheet, I love their cash position. I don't want people here getting frustrated when we trade sideways for 6 months. Beena stated next quarter will be flat due to the store closures during the quarter. So people thinking this is going anywhere fast will be sorely disappointed.