longonMJ wrote: jove wrote: Dboz0964 wrote: jove wrote: Nope. Not yet. Wait for financials to come out on Sedar. And that has a while to go, I believe
Should we be concerned?
I'm not, again, CBW has the best people in the business, Jeff tung, I am sure is a superstar like the rest of the team. It will be their first, so lots of numbers to crunch through.
Long time reader, but first time poster here.
As you can tell from my display name here, I am long on the MJ stocks since I started to buy in on them with Canopy in the middle of October, Aurora at the beginning of November, and finally CBW from the end of November onwards.
I brought into CBW because I thought they had an excellent business model after reading up on them and their business strategy. I don't believe there is a concern here as long as you are a long term holder and willing to wait until 2020 once they get the revenue generating products from all of their streaming partners into their still to be firmed up distribution pipeline. Didn't realize how many outstanding warrants they had when I initially purcahsed my shares which is the only concern that I have with this company from a shorter term point of view.
If the Deep Dive Analysis that was done for CBW and posted here earlier this week is accurate, it would look like we apparently have another 81M of these 2.3 cent warrants to go (after deducting for the 18M which was just exercised) with an expiry date of February and March of 2019. In addition, it also looks like we also have a series on other warrants with an exercise price ranging from $1.00 up to $1.50 that would become due in 2019.
Looks like the report did not include the warrants from the latest raise that can be exercise at a price of $1.80 if the shares of the company manages to have a closing share price of $3.10 for 10 consecutive days or more. All in all, it looks like the company would have around 500M shares outstanding on a fully diluted share basis once all of the warrants have been exercised.
Even with that hugmongous share count, the expected share price from my point of view should be able to hit into the double digits once you factored in all of their planned sales revenues and expected profits from all of their streaming partners. Of course, real life might be a bit different since some of the partners might not be able to hit on the production targets that have been posted in the Deep Dive Analysis. In addition, let's just hope these are all concrete contracts, as opposed to just Letters of Intent.
Bottom-line: If you guys are worried about grinding through these current $1.50 warrants, there's probably going to be a lot more gnashing of teeth going forward for you then. As for me, since I have always been a long term holder when it comes to investing, I guess I will just grin and bear it until then.