Thoughts on equity guru article ?
Have been watching love but am hesitant . Any thoughts on the equity guru article?
https://equity.guru/2019/03/01/cannara-biotech-love-c-makes-medmen-look-like-charitable-institution/
Small Quote from article :
“Recently, the FSD crew have been reportedly talking about having a ‘combined capacity of 1.2m sq ft’ with Cannara Biotech (LOVE.C), which they’ve just taken public as a side hustle (We’ll get to that one shortly).
Reality bites hard, however. The reason Auxly bailed on their deal was because FSD has only got 25k sq ft currently permittedfor growing anything, so they took back their cash and walked – the only deal I’m aware of that Auxly has ever backed out of.
Suitably chastened, FSD news releases now use the following – more accurate – wording to describe their situation:
The Company has 25,000 square feet available for production at its Ontario facility with an additional 220,000 square feet currently in development
What was once touted as destined to be the largest facility in Canada is functionally the size of Anthony Jackson’s West Vancouver ‘Bridgemark proceeds’ shoreline hideaway.
But Cannara isn’t so much an expansion of FSD’s plans as it is a monetization of them… and a repeat of last year’s stock structure bamboozler, with a nasty twist.
The Deep Dive does a really nice job covering this shitshow.
Cannara has a dual class share structure. This consists of both Class A and Class B shares, similar to that of its partner FSD Pharma. However, one key difference, is that Cannara’s Class B shares hold ZERO voting rights.
Currently, there are 15,000 Class A shares in existance, while there are 476,652,330 Class B shares in addition to 207,640,374 subscription receipts for these shares for a total Class B share count of 684,292,704 shares – plus ~31.5 million potential shares in the form of options and warrants.
Care to guess which shares will be publicly traded?