RE:RE:FS 2019 are out - check SEDARWhat worries me is their projected continued losses. The company guides towards $23 to $25 million in revenue (an impressive increase of over 100%) and a GM in the range of 22% to 27%, generating on average about $5 to $6 million in gross margin.
Their SG&A is running just above $2.5 million a quarter, implying about $10 million in SG&A costs for 2020, leaving us with a projected loss for 2020 of about $4 to $5 million. The situation is therefore getting worth in 2020 compared to 2019, since in 2019 GRN had one-off transaction costs of $2.3 million which are non-recurring, and the normalized loss was closer to $2 to 2.5 million in 2019. In other words, the losses will increase by about 100% as will their projected revenue increase.
Cash will also very quickly become and issue most likely requiring another equity raise by Q4/20.
Please review and let me know if this is a fair analysis, or if I missed something.
For me GRN is a day trading stock and not an investment. Pls do your own analysis.
GLTA