RE:Getting InpatientDerekVTX wrote:
Production was supposed to start before Christmas but still no production. My biggest worry is that they are not being truthful with our contact Mr. Deadlock. Does anyone know of any insider selling or buying?
I just spoke with Phil at IR. I had called a few times over the past 10 days and left messages, then I emailed them. Finally he called me back. Phil claimed he had been sick (was coughing on the call, sounded really gross).
Here's what he told me
- There have been delays at the facility with respect to keeping everything up to code. They think their extraction license and cultivation license are very valuable and they have to renew them every year so making sure they are on the right side of the regulators is a top priority. Being unable to renew the license for a regulatory reason would decimate the share price (in the future).
- The machines work (production and packaging). They have run tests and they can produce the ammount of strips that Brad mentioned in the interview was confirmed on the call.
- Although the long term share price appreciation will be associated with the extraction license, they know that the shares will be stuck in the mud until they produce strips. Strips in the dispensaries in California is what the market is waiting for. After making sure they are compliant with all of the regulations, producing strips and selling them are priority #2. Phil could not give me a specific date on when this will happen (he thought the decision to supply a date in the press release last year was a mistake). He has a face to face meeting with Brad scheduled for Monday so he told me to call back on Tuesday. He intends to ask specifically about a time horizion for sales.
- With respect to the capital raise, he said it was not imminent. LDS, like all public companies, would like to raise more money if they can get the right price. Part of the reason they have entered into the relationship with Skanderbeg was to gain access to the rolodex of their clients. Apparently they raised money for a gold company last year (over 10 million) so they have access to lots of deep pocketed clients back east and down south. It is possible that these people will buy in the open market as well as participate in any raise. Part of their goal is expanding visibility of the company to investors.
That's all I can remember.
If you are impatient I suggest giving IR a call. Phil is back at his desk manning the phone. Please share anything that you learn.