RE:RE:RE:RE:RE:RE:Are they going to run out of money before it is all built?Sunrize, you keep trying to divide the Sunniva Investment Community instead of unite. What are your intentions? This post reads like someone with a short interest, not a shareholder.
First of all, you did a sleazy move and used quotes around the sentence, "members of your community speaking to management on the SLY" to quote GOTMONEY, acting as if that was what he said. When in fact, GOTMONEY wrote, "And this isn't something that I made up; rather it was communicated directly to us by certain members of management."
Two completely different statements. Already you show yourself to be dishonest and untrustworthy. Three investors from the Discord Group did speak to management because we wrote in to IR with concerns. One investor was able to speak to Sunniva President Leith Pedersen personally, because he uncovered Leith's e-mail and wrote directly to him. Being that management isn't the bad, unethical people you try to frame them as, Leith understood this particular investor's concerns and worries and offered to chat with him over the phone. Their conversation did not come with an NDA, and the investor reported back to the Sunniva community what was said. No insider information was passed on here. It can all be read on the Sunniva Discord chat that you try to discredit by associating it with Disco (as if that is an insult). The second investor that spoke with management was me. I spoke to Rob Knowles over the phone as a concerned investor speaking on behalf of the Sunniva investment community on the Discord Group Chat that has over 500 members. Once again, all information given was not under an NDA, and contained no insider information. All of what was said can be read on the Sunniva Discord Group Chat. Nothing was done on the "sly," it was simply management responding to concerned investors and trying to ease our worries as the share price plummeted to new lows. The Discord Group Chat is a superior form of communication compared to forums such as StockHouse and Seeking Alpha in terms of keeping all of the Sunniva Investment Community informed and engaged. This is why much of the information is there and not on any of these forums. We welcome criticism of the company there, and in fact, encourage it. We want to make sure our investment is sound and correct. We do not wish to blindly invest in a company off some feint hope of making money. We are intelligent enough to realize that we can not will a company into making profit. The company must be able to do it on its own, with solid business plans and execution by management. When we feel Sunniva no longer fits the bill, we will sell. If we feel that Sunniva is currently the best investment to making wealth, we will continue to hold. To be frank, you do not like the Discord chat because you attempted to post there once and acted like a child. Since the chat's creation in June, there have been about 3 verbal arguments between members of the chat. You were responsible for the first and worst of those 3 verbal arguments. You were reprimanded for your immaturity and personal insults thrown at management and another member of the community. Because you did not like facing the fact that you can't be a child on the Discord chat, you have now resorted to spreading some form of propaganda on this forum that the Discord chat is a bunch of disco dancing, kool aid drinking, Sunniva dummies who don't know what they're talking about when it comes to investing. Well, good luck with that. I hope investors who read this post can see through the sleazerise (see, two can play at that Trump game of turning a name into an insult), and if they are truly serious about engaging in discussions regarding Sunniva or staying informed, they will join
the Sunniva Investors' Discord Group Chat here..
Thank you.
sunrize wrote: You sound very much like Sunniva4Life. What else should one except from one of them fanboys? Your post belongs right in line and in the DISCOrd group.
The very fact that "members of your community speaking to management on the SLY" is deplorable. A good, ethically operating management does NOT speak to so called memebers of DISCO groups on the sly and to the side. Any and all information should be publicly released. Hello SEC.
GOTMONEY wrote: So here are 5 reasons why we can safely expect no bought deals before the spin out:
1. Raising money at this time, while the spin-out preparations are in progress, will completely derail the process and would make no sense. Even just the act of issuing a new prospectus - where is the logic in that, when the company as we know it will cease to exist in a few months? They've got plenty of other things to issue and work on at this time, all in relation to the spin-out. At a minimum, a BD would halt everything for a full month while it is closing. For this reason alone it's a non-starter. And this isn't something that I made up; rather it was communicated directly to us by certain members of management.
2. The first BD since going public occurred in April 2018, and they've completed the last one as recently as October 2018. Raised $24m, of which $11m were reserved for working capital and general corporate purposes. This is more than enough when you consider the monthly burn rate is $0.5m, and the other major capital expense is just the $1.5m investment into the modular grow in Canada. The California campus is already funded and Sunniva is off the hook for making the payments on it until it is operational.
3. Sunniva has already proven itself willing and able to keep dilution to a minimum. As a "show me" demonstration that this is a fact, consider that after one year of being public, the company still has the lowest share count in the industry by a large margin. I know that other cannabis companies like to have their balances padded by hundreds of millions in cash and perhaps this is the expectation from a company in this space, but Sunniva has been doing it differently and can be reasonably expected to maintain their shareholder-friendly approach to funding.
4. If they had an urgent need for cash, they wouldn't have stockpiled product (extracted goods manufactured by their Sun-Oil facility) for a concentrated Q1 launch. The fact that they can produce 200,000+ units per product line before going to the market with it, tells you everything you need to know.
5. I think the very idea that there is a chance that Sunniva is "going to run out of money before it is all built" is based on simple ignorance and misperception, beyond what. Here are 3 of the things that are possibly confusing to lazy, uninformed investors:
a) Sunniva isn't actually paying for the California campus before it is operational - it costs them nothing. As a side note, they're also not in charge of building it and aren't responsible for the delays, which are normal and understandable for a facility of this quality and scale. On the other hand Canada, for now, is only going to cost them $1.5m to build (on the land they already own) and they do have this money.
b) The latest quarter, ended September 30, had their cash balance at $3.1m. Easy to look at this and assume they'll run out of money... except they've since raised $24m, as mentioned before. This is exactly the kind of incomplete "DD" that leads clueless people to believe they're entitled to an opinion.
c) Again, the cash padding thing. Weed investors expect inflated balance sheets to be normal and desirable, but it really isn't when it kills the company's future earnings potential and blows its market cap out of proportion to the SP. Sunniva is different. It doesn't do things that way and that's one of the reasons it's going to be so desirable to institutional investors, even if today's retail investors don't see it like that.