IR response I am sharing an email I sent to IR, and the response I got back today. Perhaps this information will be useful to longs like myself . Easy money for patient people.
My Email:
Sent: March 9, 2019 8:52 AM
To: investor@sologrowth.ca
Subject: Update for investors
Good morning,
I am writing on behalf of all investors today. As I am aware that many of our concerns as investors are probably very well the same as yours, to wit:
1. Losing out on first out the gate advantage ( to other retailers, Choom, inner spirit , etc)
2. Watching the stock price drop and the overhead cost you have for empty store fronts?
3. The concern that it could be another 16 months or so ( based on media reports) before you are licensed and open.
In closing, I am wondering if you can address any of these issues above and/or provide more insight and direction as to any upcoming moves Solo may be heading. As an investor, I am heavily invested with you and any information would be helpful.
Thank you in advance!
Kind regards,
Today’s response:
Thank you for taking the time to email regarding Solo Growth. As you likely saw yesterday, the Company announced the implementation of several key corporate strategies aimed at enhancing long-term value for its shareholders. The release issued yesterday is available here: https://sologrowth.ca/wp-content/uploads/2019/03/19_03_12_-_Ops_and_Corporate_Update_FINAL.pdf, and the Company also updated its corporate presentation which is available here: https://sologrowth.ca/wp-content/uploads/2019/03/19-03-12-SGC-Presentation-March-FINAL-2.pdf.
With three stores now inspected by AGLC, the Company is prepared and excited to be able to open these stores immediately upon granting of an AGLC license, which remains at the discretion of AGLC subject to the prevailing supply constraints in Canada. In addition to its organic growth, Solo Growth has increased its focus on strategic opportunities within the cannabis sector that will drive shareholder value, including accretive strategic acquisitions, partnerships and/or other ventures. An additional four stores are expected to be ready for inspection in the coming weeks, and Solo Growth will continue to provide updates on these inspections as information is available.
In terms of cost control, Solo Growth has successfully assembled a strong administrative team, and therefore no longer requires the back-office functions that were previously provided by the Solo Liquor Administrative Services Agreement, which provided for accounting, payroll, IT and back office administrative services. The termination of the agreement, along with the head office relocation to alternate space, is another key step to keeping overhead costs low - resulting in an annual estimated savings of $200,000. Solo Growth is committed to maintaining a healthy financial position, while also ensuring the Company is prepared to open locations as soon as AGLC licenses are granted, and pursue a broader strategy that includes both organic growth along with potential M&A or other transactions. Ultimately, the Company is driving to generate value for shareholders, and believes the pivot announced yesterday is optimal given the ongoing regulatory uncertainty and supply constraints facing the industry.
In the interim, hopefully this helps provide colour, but if you have additional questions, please don't hesitate to let us know.
Thanks again,
Cindy Gray, MBA
5 Quarters Investor Relations, Inc.
403.231.4372 Office
403.828.0146 Cell
cgray@5qir.com | www.5qir.com