RE:RE:RE:RE:FB groupI suppose it is all subjective. I'm generally annoyed at the fact that I continue to download quarterly presentations to look at the timelines for when the busines plan hits its next milestone(s). Those presentations make up 'part' of my decision making process on whether to buy more or wait. I believe some people are frustrated, myself included at buying in at higher prices on the expectation of news to push the price even higher and then we are left holding a bag while we trickle back to the dirty thirties. An easy example is the completion of the LBF facility. Something the guidance indicated would be done in Q4 2019. We are six weeks beyond that guidance with no official anything other than the latest Form 7 that states the following:
"The Company has completed buildout of its bottling line in Long Beach, California, and is working with local utilities to complete minor tenant improvements requested by municipal inspectors, notably related to electrical components. The Company responded to questions asked by relevant cannabis regulators and they have replied with no further questions. The final commissioning of the bottling line will be performed once the Company has a fully useable license, as this commissioning requires handling of cannabis. The project therefore remains classified and “Construction in Progress” until such time as project and facility is “in use.” Expenditures consist of Equipment and Tenant Improvements. See the Company’s November 27, 2019 press release regarding remaining steps to licensing and commissioning, and timeline.
Here's the snippet from that Nov 27 news release...
"The Company has completed tenant improvements requested by the municipality during its pre-inspections, most of which were related to electrical upgrades that are required for the Company’s purpose-built bottling line. The Company expects electrical inspections for this equipment to take place in early December, after which the utility can complete transformer and meter activation. This activation will trigger a final round of inspections by all relevant municipal departments. Upon completion of these inspections and receipt of its cannabis manufacturing license, the Company will undertake the final commissioning of the bottling line using cannabis-infused product. The Company has bottled non-infused versions of several of its products as part of pre-commissioning testing.
So they have completed all electrical updates as requested as of November 27, 2019. The license was granted the 14th of January meaning the inspection is done, they tested non-infused on the bottling line as a 'pre' test and a month later we still can't say the 'commissioning of the facility is complete. Great, I totally understand we are breaking new ground here and it is way better to use caution and take our time getting this right. BUT under the circumstances, please going forward, don't be so ambitious with guidance and timelines you can't meet and historically have almost never met. Perhaps this is why we dwell in the forties with anemic volume most days.
Happy Monday,
MJ1