FSD Financing Issues? Just saw the news release.
If I read this correctly, they closed the second tranche for 4596285 on Nov 4,2019.
The previous was 4583085 Oct 1,2019
So, if I read this correctly, in the month they added only 13,000 financing?
Not encouraging, if this is the case-especially since insiders needed to provide the major support for the financing.
I guess who would buy at 20 when its at 7 (.10 vs under a nickle)
Can someone clarify?
The G&M alluded to difficulties with financings of all cannabis cos in a few recent articles, making me think this might be the issue here...
"The warning signs were there all summer, but it wasn’t until the first business day of September that the reckoning arrived for Canadian cannabis companies in need of money.After markets closed on Sept. 3, Aurora Cannabis Inc., one of Canada’s largest legal marijuana producers, tried to sell its 10.5-per-cent stake in a rival company, The Green Organic Dutchman Holdings Ltd. – better known as TGOD – to public investors.After two days of marketing, roughly half of the $86.5-million in TGOD shares remained unsold, according to sources familiar with the sale. TGOD had been an investor favourite and the deal was priced at a 14.5-per-cent discount to the market, but investors still balked.
At the time, there were already clear signs that the days of easy money for cannabis companies were over. The total amount of money raised by the sector had plunged over the summer.
But the TGOD deal sent a message to the entire industry: The taps were almost fully closed."
https://www.theglobeandmail.com/cannabis/article-all-dried-up-how-bay-street-cashed-in-on-the-cannabis-frenzy-before/
https://www.theglobeandmail.com/business/commentary/article-is-the-bloom-fading-from-the-cannabis-sector/
Any thoughts?
Is this just another quiet period and there is a HUGE investor waiting?