RE:Things getting worseI don't think things are any worse than they were a few weeks ago.
The company needs to do something about the debt. There is no chance they will hit the convert price so the maturity date on the debt will need to be renegotiated. The debt holders will gain very little by bankrupting the company as it has almost no tangible assets that could be recovered.
So Plus will either find another lender to come in and buy the debt (at a higher rate of interest with better terms for conversion) or they will negotiate with the debenture holders themselves.
The good news is they have a year to get that deal done. I assume this is one of the top priorities for management at the moment becuse the share price will have a hard time appreciating so logn as the debt is hanging over the company (coronavirus and weed market aside).
They will report earnings for 2019 at the end of April and then Q1 2020 at the end of May. I expect them to do something like 3 million in q4 and then 5 million in Q1.
Management has said they would do conference calls in conjunction with their earnings (they did one for Q3) so I would expect there to be a number of questions about the debt when they report. I also expect an increased effort to improve margins and get the company on track for profitability by year end 2020. Tumbling share prices and a lack of liquidity has forced the entire industry to move in this direction. If you read the form from January of 2020 you will know that they laid of 13 employees in the first month of this year. That move clearly shows that they are aiming to be a more efficient company.
I would not expect much by way of news from Plus in the mean time. We will wait for the financials at the end of April and May, hope the company is showing progress, and hope they can renegotiate the terms of their debt.
Those are my two cents anyway.
fundamentalinvestor wrote: Believe the outstanding covertables are more than the market cap now or close to it......
The so called CBD / CASPER / John Legend hasn't done much to maintain the stock for management to do their next raise.....
Show us the EBITDA...........Show us the strong sales numbers.......Show us the prudent use of capital............
RADD - Use your capital market expertise to demonstrate that the convertables will get their money back........
So with thinking like that - how are the common shares doing?.....