RE:RE:Comment from seeking alpha@bluechip2: Good post. MedMen is losing it. CFO quit and they lowered the fundraising.
In other news, Sunniva is quietly going on about its Calif business (see my post about 3 hires they have pending in Calif). The Canadian ops is a black box and that's the one I have always hated.
Prove me wrong, Dr. Holla, coz the dolla value of yer company isn't much to holla about.
Bluechip2 wrote: @Gotmoney- I don't characterize the Cathedral facility as being late to any party. The California regulations and permanent legislation for legal cannabis companies are just now being finalized. The costs and leadtimes associated with this buildout places Sunniva with a 12-18 month first mover advantage regarding large scale, pharmaceutical grade cultivation. The rush to support Canadian legalization and get access to international markets has created a series of highly diluted Canadian LP's with mainly inferior facilites, high costs, and overblown valuations. On top of that, the majority of product is low margin and low quality (government controlled and no edibles or branding). On the other hand, the US companies have been forced (federal legalization restrictions) to build their businesses with the intent of becoming profitable along the way in order to survive as access to finances has been restricted.
Also, as a result of the methodical, organic buildout, Sunniva has very low dilution with over 80% of shares issued and outstanding. This model allows the SP to grow generally in concert with the market cap without share holders having to burden the costs of much of the capital expenditures. Companies such as MMEN, ACReage, Curaleaf, etc. in the US are building their businesses on the back of investors much the same as Aurora and others have done in Canada. If you look at the Aurora model, for example, their market cap has near tripled in less than a year, but during that same time period the SP has compressed around 40%. Aphria, same thing, SP has dropped 50% since January 2018 while the company grows the business model. Looking at MMEN in the US, they have been acquiring other businesses at a blistering pace similar to Aurora and their executives will rewarded handsomely but they have over 435M shares reserved for issuance and the SP is today, where it was 6 months ago.