Listened to the conference call Twice. Took notes and here are my observations. Feel free to critique:
1. For just the very first time, Ted Ohashi asked tough questions and it is clear that Ted is still confused from the answers provided at the conference call. I bet Ted is still scratching his head. And I also bet that he shoudl have asked all the tough questions two years ago, instead of blindly pumping the shyt out of this company. His questions today were 2 years too late.
2. When Ted asked about what "re-financing the project" means, Holler said it involves "we are considering everything". To which Ted LAUGHED. That says it all. Go back and hear it for yourself
3. Holler seemed confused and clearly without answers. The "we are considering everything" means there is no clear plan. From day one, Holler's strategy has been one of make it up as we go. It is evident from the Canadian ops, said bank financing, spin off, lost opportunity with Canopy, NOT RAISING money when the sp was high, etc,, etc.
4. Even now, Holler does not have a clear plan forward. It seems to all hinge on the OK Falls sale. And knowing Sunniva is in distressed, dire starits, they will damn well make sure to pay the least amount for OK Falls, ASSUMING they even buy it. Sure, they paid $1.9 million already but what if they don't want to throw good money after bad?
5. Holler contradicted himself 3 separate times regarding how much money is needed to complete the Glasshouse. At first he said 8 million. Then he said 20 million, not including the chillers and boilers
Then he said they would get 5 million from the OK Falls sale. Huh? Just 5 million?
6. Absolutely confusing as to what the dispute is about and who filed the dispute. None of the callers asked for clarification. No clarity provided by mgmt. We are kept in the dark
7. They need 25 million in Vendor financing for backup power. No explanation or clarity provided as to why a vnedor would front up that much money and even if they did, what is in it for them? How much would Sunniva have to "give away" to get the 25 million in financing? You can bet it would be a lot
8. Holler said Barker is a significant shareholder. What if he starts unloading shares?
9. Completion of Glasshouse is not the end all. Significant costs are associated in planting, harvesting, testing, marketing, distribution, etc. None of that was mentioned. Why? Because "they make it up as they go"
10. Kevin Wilkerson sacrificed LYTR Logistics and if he quit, there MUST be a strong reason. I can safely bet that he does NOT see Sunniva succeeding at all. Else, why else would he walk away?
This in spite of fronting his own money during the past bridge financing
11. If Wilkerson, who is in the know, walked away (clearly he was NOT fired), then how in the hell are we to assume that Sunniva will succeed?
12. Remember - Leith Pederson and Kevin Wilkerson walked away. A Co-founder and the CEO who sacrificed his own company. What is that telling us?
13. I am clearly not buying. It is cheap for a reason. The stock has been sliding down for 2 years now. You always thought there was a bottom but things have gone from bad to worse. I do not want to put a single penny more into this falling knife of a company.
14. Holler thinks he can manage all by himself (he said he is working more than 100% of his time for Sunniva)- that is a joke. One man sitting in Canada cannot manage what is going on in Cat City.
15. Lastly, legal disputes take a long, long time. Barker has deep pockets and pissed. Does not bode well.