RE:Letter to Shareholders On my first read of the letter, it sounded overly emotional, but upon rereading it for a second time it wasn't as emotional. The only two parts that didn't sound professional to me were:
1. "Once we worked through a deep, holistic self-audit"
Holistic is not a word commonly used by professionals, and instantly reminded me of Sean Dollinger's style of "New Age Casual".
2. "Throughout this journey, it's clear we've had one constant: you. Despite the ups and downs; our challenges, growing pains, and under-delivered assurances of the past, you remained with us. I can't begin to convey our immense gratitude for your continuous support, your tough questions, and your suggestions as we work to improve Namaste."
This sounds like a great big sugar coated apology, "we're sorry for messing up, please don't leave us, shareholders!" This doesn't instill confidence in any seasoned investors. The CEO should focus on the company's strengths, and how the weaknesses are being professionally dealt with. Anything past that gets into hand-holding and emotional pleas.
I believe parts like this were solid, and instill investor confidence:
"Settling class-action lawsuits in Canada and the US in principle, followed by early 2020 final court approval"
"Re-negotiating contracts with partners and adjusted our commercial strategy to drive EBITDA growth in 2020"
"Terminating vendor and supply agreements that did not make financial sense"
"securing agreements and strengthening our relationship with various Provincial governments, and we now have a direct path to the recreational market"
"Introduce our consignment and services model, which optimizes our cash flow and opens up a new revenue stream"
"Secure licensing agreements with well-known brands, which we view as crucial as we see the industry shifting to Consumer Packaged Goods"
"We have also cleared old inventory and made room for the products that satisfy our customers' needs."
"By mid-2020, just a few months away, we hope to show the impact of the investments, restructuring, and launch of new revenue channels in our midyear results."
"We are attracting premium brands and value added partners as a growing number of licensed producers and provincial agencies are recognizing CannMart's value proposition and expertise"
"we remain cash conscious and focused on our balance sheet. We have also made significant shifts in internal processes, and while progress may not happen overnight, I can confirm we are finally starting to see these labors bear fruit."
"in 2020 and beyond, we will obsessively work to grow both segments, and finally - start overdelivering on our promises."