RE:RE:RE:RE:RE:RE:RE:RE:RE:StunnedAvInvestor - (2/11/2021 7:14:58 PM)
RE:RE:RE:RE:RE:RE:RE:RE:Stunned Not true. They reported a Q3 net EBITDA of $3.5M, which should steadily increase in Q4 from higher sales and improve in Q1 with slighty lower interest expenses. Debt still remains a problem, although it has improved.
'Positive adjusted EBITDA' is a term used by companies to put a spin on the fact that their bottom line is a NET LOSS. In Zena's case, they lost $17 million in Q3 - $40 million YTD loss.
Zena issued a press release indicating reduced revenue guidance for Q4, so if they lost $17 million in Q3, it will be at least that in Q4 - regardless of 'EBITDA'
As I mentioned to the other "guy". Very few players actually produce decent quality stuff. Large LPs have to rely on B2B sales just to maintain market share. If Zena maintains decent quality production out of Atholville and ramps up Langley, they will be in better shape in the future. We won't see an A quality player, but rather a solid B.
Like the other 'guy' mentioned - LPs don't RELY on B2B sales - it's a normal, totally acceptable part of the sales process. Why would you NOT have B2B sales.
Can you advise which players produce quality and which don't? I didn't know companies provided such data to the general public and investor.
Again - Irefer you to 'Re-up' - Zena regualrly touts sales of their economically brand. I think you're referring to a companies such as FIRE who produce a high quality, craft specialty product.
Why did SNDL want the Zenabis assets? 70% of current LPs operations are uneconomic and will eventually fold. Remove the debt, and Zenabis assets (except stellarton) become money making machines.
Sundial is cashed up, looking to use that cash to expand. What companies out there would NOT want Zena if the facilities came with no debt?
Your comment makes no sense - any operation with zero debt is a cash machine.
Zena owes $100 million - AFTER the fire sale of Delta and Bevo
BEVO - a respected supplier for over 30 years, regretted the day they met Grieve and company. Leo and the Benne family are in a better place today.