GREY:SNNVF - Post by User
Comment by
thetis88on Dec 05, 2018 1:20pm
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Post# 29069762
RE:Another SNN article quote, “UNDERVALUED”
RE:Another SNN article quote, “UNDERVALUED”In reading the MD&A again, I picked up that the estimated cost constructing the California building has gone from 54 to 78 million. The difference of 24 million, is for temperature control and lighting.
This summer, I understand the temperature inside the building reached 140 degrees. As result, construction was halted, as no one can work in that heat. How can cannabis survive in 140 degrees. It would fry.
It looks like no one in management was aware, when they set a budget of 54 million, that it might get very hot in a glass building in the desert . You must be kidding? How could they miss this fact?
How long will it take them now to install an additional 24 million of equipment, and who pays for the additional 24 million?
Sunniva was leasing the building for a million a month, calculated on a lease rate I think of 17.4 %. What will the new rent be? Why has this not been disclosed, as the rent has to go up, and will increase the rate the cash goes out the door.
Further, does anyone know if its possible to cool a building with a floor plate of 400,000 square feet and very high ceilings, from 140 degrees to a temperature that doesn't fry the cannabis?
My view is that finding and installing this equipment will even further delay the date they can start to grow the cannabis.
Why hasn't this been mentioned in their press releases or conference calls?
I will wait again till the stock is less than $2.50 a share before I post again. I expect it will take a lot more than four days to get to that price.