RE:The whole point of the pumptodaypartlycloudy wrote: Was to get this thing well over 0.75 in order for warrants to get exercised and juicing the company coffers which are running seriously low (just take a look at the terms of the $500k credit facility). Absent this, the company will need to finance. But at what price? Looks like the pump didnt succeed in its goal (yet) so now the question is what SP do they finance at? And how long until THAT closes? Interesting times for this *elite* level mgmt team
This is nothing more than speculation. When I spoke with managment they told me they had no need or desire to raise more money. They have 2,5 million earmarked to build their grow facility and for rainy day. Plus, the grow facility will be built in a modular fashion, so they can use profits from the completed parts to build the remainder. If you don't believe me, call IR and ask Phil yourself.
The line of credit is being used to acquire biomass for extraction. They could be paying 250k in interest and still make money. If you think they should have gotten better terms on the loan then you havent considered the realities of operating a cannabis business in California. Banks won't lend because it is still federally illegal. The terms of any loan will be bad, but considering that LDS is supply constrained and not demand constrained - taking on debt to secure pure biomass is vital to continue operations until their grow facility is complete.
Danny Deadlock hates LDS management. Take his recommendations with a grain of salt. He has sold all his shares.