GREY:SNNVF - Post by User
Comment by
BG2019on Jul 01, 2019 7:39pm
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Post# 29878777
RE:on fumes
RE:on fumesResponding to your point about why an entity would buy Sunniva vs just the glasshouse: whoever buys the real estate gets real estate encumbered by a 15 year lease, w extension options up to 30 years. I.E they get a rent payment. So a real estate investor would probably find that attractive. A company in the cannabis space would need to buy Sunniva to have operational access to the facility any time in the next 15-30 years.
Cash position is definitely a concern but given that their last debt and equity offerings were oversubscribed it seems BK is extremely unlikely. Only scenario where that happens is if management is unethical. Management has had some missteps but there is nothing to indicate they would file for BK to somehow screw shareholders and turn the property over to an interested party (Barker) (or how that would even play out given US federal illegality). Much more likely OK falls sale happens, w NHS sale to follow shortly thereafter, or there is some dilution at an unfavorable price. Either way Sunniva keeps marching forward and the Cat City facility is operational later this year.