The tale of the PP..... Sunday marks exactly 5 months from the day that the PP was announced. This placement has been the tale of two stories. 4 months of serious disappointment as the placement remained open with limited interest. During that time the company has some solid news releases and an unbelievable Q2 financial statement, it meant nothing for the share price. At times it left the long and strong like myself wondering WTF was going on because things weren’t adding up.
Now, chapter 2 of this story has being wildly interesting. The marijuana and hemp sector all of a sudden heated up significantly! Why? That’s for everyone to wonder, but those in the investment community that I know personally have suggested that the overall mindset of institutions on marijuana stocks in the country has changed. Those institutions who a year ago claimed they would not invest in the sector have changed their tune and are taking positions all across the board. Now, is there some truth that there is an industry wide “pump” happening, I absolutely think yes, but the cream always rises to the top and NSP has the fundamentals that 95% of these other companies could only dream of at this stage.
What has this meant to this placement? All of a sudden this placement that was a huge anchor for the company for 4 months wasn’t big enough to fit all of the demand, so they increased it! (which seemed crazy after the long haul the first 4 months were). That however just increased the interest in the placement to the point where the company has been turning money away like crazy. Even a long time investor and supporter like myself, with money and subs sent in early had to be peeled back on what I wanted while others I know got completely rejected, a concept that 4 weeks ago would have been laughable.
With this renewed sector interest and what has now actually worked out to be a well-timed PP (only because it was open so ridiculously and painfully long – but sometimes you need luck on your side) I am confident that NSP is finally breaking through. The volume continues at a record pace recently in Canada, the USA and Germany, regulations continue to become less restrictive and NSP is perfectly positioned to increase revenue in many verticals. One of the challenges with NSP is that it is so diversified but its also a strength as it allows them to follow the opportunity and not beat their heads against a wall trying to move mountains, they can wait for the path to clear. Don’t get me wrong, this company has made mistakes and is not flawless but I also oversee a large revenue operation in my professional life and if you think you can make all the right moves all the time, your fooling yourself, growing pains are inevitable.
Anyway, I am as optimistic as I have ever been here (and those that have been around know Im an optimist!!) and the closing of this PP, when it finally happens will mark a new era for this company and hopefully the last public offering we see. The company has been silent on news updates, which is very rare for NSP so I am of the opinion that some business updates are long overdue.
Cheers all and happy Friday!