RE:RE:Green weekUnfortunately in the market, in order for you to win, someone has to lose. It may be a loss of capital or losing out on an opportunity. You can do your best due dilligence and still be blindsided. Most shareholders are unhappy with the current situation but at this point our the options are few.
2018 was a bad year for us. I honestly would not have thought that we would be here from where we were at the beginning of the year. We had the prospects of a final review license and a completed by Q1 BC operating facility and CDN legalization looming, along with the winning referendum on recreational MJ in California and an operational California facility that was earning revenue with plans to expand with 10 more greenhouses. Nevada was supposed to be completed soon after as well. Honestly, it still confounds me how they did not even pull off one success out of the many coals in the fire. I hate to say it, but the share price and sentiment is justified and criticism of management is deserved.
That is the situation of a de-evolving company with a $2 share price to one of a sub $0.20 level. Can there be a reversal? Imho, yes (or else I would not be here) but it certainly has to be progress related. If they idle through Q1 2019,then all bets are off where the SP will be headed.
My take is that there is demand and current shortfall that exists for medical MJ in Canada.
https://www.citynews1130.com/2018/11/15/medical-pot-shortage-to-last-18-months-medicinal-cannabis-resource-centre/ This is MGW's primary market as a supplier. They need to complete their faciltiy, get their license and begin selling to Cannmart or whatever distribution channel as soon as possible. We all know whatever they sell will be a pittance, but establishing credibility is everything especially when you are trying to raise money. Judging by the flurry of capital investment by the US pot companies, there is no shortage of interest.
With Raymond in NV, I expect they are close to arranging the necessary financing to begin breaking ground there as alluded to by their VP of business development. There is some red tape they must navigate through as NV will not allow them to utilize or transfer the license from Bioneva until the facility has been completed and followed by an audit. Hopefully, he stops by California on his way back to forward the licensing application for Riverside.
In summary, we all express our disappointment and place our blame squarely on management but primarily on Mr. Lai. Judging by the last couple of years and in hindsight, he clearly was remiss and not the person for the job at hand. Problem is, with management, I feel there is an entitlement issue in such that they feel embittered in perceiving that the market is unreasonable in valuing them at certain SP and how they feel they should automatically be deserving of a much higher SP as a late stage applicant or projections of being a licensed one. My belief is rather than be accusatory or deflect blame, as management it is far more productive to identify a solution and pre-empt a recurring crisis. If you build your business with credibility, and accomplish your goals in a timely fashion, the share price will mostly take care of itself. I hope shareholders will continue to hold them accountable then perhaps we can move foreward, rather than backtrack.
IMHO, it may be some time until we see those $2 SP days without significant factors, but if they actually pull off Telkwa, licensing and production, most likely this period of distressed SP will be seen as a tremendous buying opportunity.