Sunniva Inc SNNVF

RE:RE:RE:RE:RE:RE:RE:Just one analyst asking questions

[GOTMONEY]

I think the issue is not the way Sunniva is measured, it's that it isn't really measured at all... the spotlight is on other stocks at the moment. No company in this sector is measured in the traditional way, and I don't see a reason for Sunniva to be exceptional in this regard. I think the name of the game is still hype and investor attention, which we should hopefully garner even before revenue starts coming in heavy and strong. But who knows.

The $10m for Calfornia doesn't worry me... you might remember that in yesterday's earnings call, the CFO stated they currently have $24.1m in working capital, which more than covers their operational needs.

As for dilution, I think management would allow the share price to appreciate a bit (or a lot) before going for another BD or similar. And in their approach to financing so far, they've given us ample evidence to believe that any dilution will be kept at a minimum, with a good cost-benefit profile. Acquisitions will probably be made in the context of the greater California ecosystem that they're currently building around the Cat City facility, and would likely have a synergistic "force multiplier" kind of effect on their business. In any case, I'm sure this isn't going to be a Nuuvera or CannMart kind of deal. So even though there's uncertainty, I'm more excited than concerned.