TSXV:NSP.H - Post by User
Post by
Xstorm2on Jul 08, 2021 9:33pm
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Post# 33519499
A tuff read
A tuff readBeen waiting for DKM's thoughts on recent events, if we know him well enough, I'd venture a guess one is being prepared in a word document as we speak!
A take away from the PP recently offered is worded as such
"Proceeds of the Offering will be used for expansion of Naturally Splendid's existing facilities, product development including clinical trials and work capital purposes"
Making reference to "Clinical Trials".
I've already noted my concerns with how vague they are with the offerings in the past, always wording there releases as such they could do whatever they like with the money. That is a concern again.
Now, they mention prior that the new equipment was ordered and to be operational in 6-8 weeks. We all know they have no money… Let’s put it together.
1. The directors announce they will settle the debts loaned to the company via shares. At 7 cents, to show strength.
2. They announce the equipment is basically in route. I don’t know many people fronting million-dollar equipment on a promise to pay.
3. They announce a PP for 2.5 million dollars and reference, expansion, clinical trials and Craig’s checkbook.
All the while finalizing a 10-year deal. Claiming they can increase production 10 times, to 10 tons from 1 ton. Do they even sell 1 ton of food a month, never mind a day? Should we be concerned about 1 ton a day versus 10 tons? Correct me if I am wrong, do our sales indicate anything remotely close to having production limitations? Would we not see this in the financials…
The 3 points above do show optimism. They clearly have someone willing to take place in the PP to push this forward.
Lets remind ourselves of the past hype
POS facility
Packaging equipment deal
Extraction equipment deal
Build out after build out to increase production to 1 ton a day as they claim now, no sales to back it up
Covid times? Sure, will factor it in. But it isn’t no free ride
We need to see valuations on this 10 year deal or I’ll dip them down to 2 on the way out.