Sunniva Inc SNNVF

RE:RE:RE:on fumes

[BG2019]

Anything is possible, and I agree with you there are a lot of people with rose colored glasses on when it comes to Sunniva, but I just don’t see them not existing unless there is a buyout.  And I don’t see management or shareholders agreeing to buyout unless they have either no other choice or it’s at a significant premium.

You’re correct about their AP but they also had ~$10.5mm of A/R and ~8mm in inventory.  Net proceeds from OK falls sale (if it goes through) should still be ~$9mm after paying off the bridge financing.

I agree they need more cash, whether through selling NHS or through another round of financing.  If Ok falls sale goes through I think they’ve bought themselves a decent amount of breathing room to sell NHS on their own timeline, even if Q2 net loss doubles.  If OK falls sale doesn’t go through I think financing on unfavorable terms happens and the share structure falls more in line with other cannabis companies.  Garbage/pump and dump cannabis companies have been able to raise funds, I think Sunniva still has the backing to do so if they ever need to.

Supposed to be some news in the next week or so on OK falls so may not be long to wait to see one way or another how this shakes out.