RE:RE:Sproutly summary entering 2020HawkII wrote: BarstoolSage wrote: 1) grows MJ with superior genetics and sells it under a memorable brand name, Caliber
2) has a solution for the infused beverage sector to solve onset, offset, and duration uncertainties
3) has a JV with Moosehead
4) has a defensible competitive edge
5) healthy insider ownership plus some institutional investors
6) not a significantly large number of shares outstanding...227mm plus another 55mm reserved
Now the MJ market for flower had a big burp due to various reasons, and the edibles\beverages market may not take off as anticipated either. That will spell trouble for a bunch of producers and we may see a roiling stock market in this industry.
But given our strong tech, our strong genetic and brand, and our "scale", that we can survive a lot of market turmoil.
Guess ... SPR has what it takes to be a survivor...or very attractive takeover target
Next financials due by the end of January. You are forewarned.
1) That's subjective. And the proven fact that Cdns will shop for lowest price means good luck getting preimum pricing.
2) It's not proven until a patent is granted. Patent pending for years now. In addition, TrueAeroGrow (Infusion's partner in Washington where cannabis is legal) hasn't press released any sales of note. And finally, A88 infused beverage has also put sales on hold until legla in the US. How is that proven?
3) Correction ... Apr 30/19 announced a JV with MH suggesting final terms pending and 8 months later still pending. So SPR has entered 2020 with MH in the drivers seat.
4) No patents. No beverage sales. No licensed co-packer. Just another cultivator in an oversupplied market is far from defensible.
5) Correction ... Zero institutional ownership (as reflected on bloomberg) and the following is hardly material insider interest (from July 24 AIF) ...Dolo 1.1%, Semkuley 0%, Loverock 0.04%, Studer 0.55%, Orr 0.08%.
6) So funny ... 227m is gross. And a $10M financing means that they'd have to issue another 66.7M shares at $0.15.
Takeover target ... not a chance given $40M mkt cap and $52M intangibles. If anything it might be a take under. And MH could pull it off since they hold all the cards given SPR's balance sheet.
Too many holes in your response to address Hawk... will not bother.
I am comfortable with the positioning of SPR going into 2020. It is not the most favourable position but certainly not the worst. I have a feeling there is much work happening behind the scenes. I don’t believe MH holds all of the cards nor are they in competition with each other as Hawk attempts to allude. They are in a partnership with a mutual goal. I would even say SPR has the best poker face and is holding all of the aces in terms of the edibles industry. Once they have everyone committed to the pot and stats are out on what sells with packaging in place, they will push their all in to reveal their stellar hand.
I like this recent article(link below) despite the inaccurate comparison of US to Can beverage market. However inaccurate, it is the only market comparison for forecast. Many companies will see tough times in 2020. I don’t believe SPR will be among them and will remain buoyant.
See the last paragraph of the article with regard to CPGC. Keith has stated multiple times in interviews spanning from 2018, that his focus is on developing a CPGC(Consumers Packaged Goods Company). This is evident with the selection of management and business structure SPR is adhering. SPR is in good hands and on the right track.
Despite the silence and feelings of impatience, this revolutionary tech deserves the proper role out and need not be dictated by our investors’ emotions. This will all make sense to us in 2020 as the blanks and shelves are filled. Wishing you the best for all of your endeavours in 2020!