RE:Todays Private Placement Was A Blessing In DisguiseOptimumSpectrum wrote:
While many investors may look at todays financing as a negative, or poorly timed, it really could not be any further from the truth, when you seriously break it down. First of all, let's look at the previous non-brokered private placement that was originally slate to be 5 million, which ended up closing at $3,602,250. People saw that as a negative even at the time that it wasn't overbought or to the full 5 million, but in reality it was a major positive because that would have ultimately just created more unnecessary dilution.
14,409,000 shares were issued and sold at 0.25 to investors at an incredible bargain at the end of October, and now with todays deal we saw even less share dilution (13,726,000 shares) at more than 10 TIMES the amount raised than the previous PP, only 3 months ago. 35 million dollars will go a long way for Namaste, and I believe that they will put every dollar to good use. I can easily foresee yet another impeccable acquisition coming to fruition and being announced in the following weeks, if not days. Both Australian Vaporizers and CannMart were perfectly strategized acquisitions that opened doorways to other new areas of markets that nobody would have previously thought this company could even target before. Now with this new found money, I can easily see them quickly spreading their global domination of advanced e-commerce platform strategies by purchasing new sales licenses in countries that allow it. Australia is a no brainer, with their even higher traffic rate than Canada, at 2000 customers per day, they could easily target and convert many more patients there. But that still leaves them with a huge pile of cash to play with. And keep in mind, that this private placement could see yet another increase to 40 million.
So as the share price was clearly declining, it was important that they financed this deal. It is at $2.55, which is over 1000% the value of the PP 3 months ago, so unless you're a day trader who got stuck at the top, you should not be in the least bit concerned! If you believe in the amazing company that you invested in, and have done your DD, you should know that all the pieces are being aligned in the right positions. Look at what news releases have transpired in the last 2-3 months alone, and you should already know what events are to come, and I'm not simply talking about the sales license either. I'm talking more about the monthly conversion rates of patients that sign up. Those numbers will give analysts accurate details of a more suitable evaluation for CannMart.
So although today may have seemed terrible in the timing, it really was not. The industry is clearly cooling off, so imagine what may happen if they waited any longer for the share price to just continue dropping.... this is a great deal for all long term investors. We just got hammered with the double whammy of both the entire industry (and entire world market) being unbearably down for the last several days.
Stay long and strong, and ignore these bashing rejects on here by all means.
A blessing indeed, post more often will ya!
I'm sure most have noticed how all the LP's charts are mimicking Canopy's. Frustrating, I mean Namaste did have a huge run to over $4 but Canopy's and Cmed even, their marathons to $40 was ludicrous and now the rest of the sector has to sit on the bench it seems and wait for new bases. Wont be long, greed never goes out of style, the sell-off wont last and the climb will start again. Fundamentals haven't changed and folks will continue to buy vapes and weed, sales will continue to grow. Just have to wait. That's all there is too it.