RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Heres what a default in debt payment looks like. Agreed joh, the picture in real time is irrelevant as they are really just beginning to open up for business of which will be materially changing valuation of the company for some time to come.
The CPG function alone is a material game changer for the company...have you heard that the savings due to this change will allow for the same net margins at these sale prices? If so this will be much better than expected.
At this rate of sales country wide going forward we are going to see some serious lift in SP...the contrast with others in the sector as they continue to retool and try to get more FIRElike should add to the lift in SP as well.
Blissco is going to be selling online via a med script, am waiting for info on status, have you heard anything on their progress? Very healthy progress all round for this company and those that own, JMHO...Opt
johnale wrote: Valuating the company at this point is a fools errand.
When they start to make money - then you can look at alchol companies and a 15x ebita for valuation.
Fires adjusted margins were great before the automation was implemented. (even with manuall labour intensive bottling lines) 63% one q, 43%? last quarter adjusted. Never mind the fact that all their construction and cash burn is complete. and they shed 1mil in salaries.
so let s get to 40 mil in revenue in Q4 and see some 20 mil in ebita - and take that over 4 quarters and your looking at a 1.2 billion dollar valuation on the equity.
There is your bull case. 3.38/share at current outstanding shares. and with a profitable q like that i doubt they will need to dilute at all.
Q started off well with everything sold out in ontario. they need to get vapes and pre-rolls to market asap and we are not far off from that number with increased distribution to western provinces.