RE:RE:RE:RE:RE:RE:Too much garbage post hereGrnhousegarbage wrote:
3) your comments hiding behind the adds (gotta love stockhouse) but I'll respond best I can. It's a great deal. What kind of business are you in? Have you ever watched that show the liquidator?...
Let me just put an end to this discussion. I'll show you how to properly look into this.
1. The Ebersbach Facility is about 400k sq.ft. for comparison Langton Ph1 is 217K with production of about 20,000kg of cannabis/yr or 20million grams per year. for simplification the Ebersbach should be around 37million grams per yr.
2. Weed in germany is about $12 euros to $20 euros per gram. lets take $12 euros for now.
3. MARI targets low cost production of $1.34 cost per gram, say we double that because everything is more expensive in europe. thats 2.68 per gram.
4. That streaming deal is for 20% of production at COST + 10%. so that's about $2.95 per gram. so the loss is [12-2.95] = $9.05
for the math: 20% of 37million grams = 7.4million grams x 9.05 per gram = roughly $67 euros. that's 22 million more than what they got from that deal. for 22million you can buy 6 more ebersbach facility. that's just bad deal. its like they sold their soul and future to the devil just so the stock is not diluted. If you take a more optimist assumption it just gets worse.
It looked good because its non-dilutive but in reality it was really bad for that company. ACB's management don't make those kind of mistakes. And for that I am fully convinced ACB's management is definitely better. I'd rather a diluted stock than a company managed like that.