RE:RE:Can we get pass these debates and concentrateYour post can be posted on every Cannabis sector and based on what you just said its called the on and off setbacks of running any MJ sector. It reflects many other MJ sectors, we see these types of scenarios happening all around us. Clearly luck is also involved in what other companies that you are affiliated with. If one of them luck out guess what so will you. Namaste is a very versatile company. Meni Morin is a very intelligent person this is also why i have alot of interest in this company. Raising cash is simple when needed.
Choklat randomtask wrote: I'll move on as long as there's no more false information passed around.
I agree that Namaste will see gains in revenue, my concern is profitability and the time it takes to get there. Here's why:
There's a finite amount of cash in the bank, and if every quarter you post a loss, you eat into that cash. Finding breakeven means finding a stop to that cash bleed. The big question is how fast can get they get there and is it before money runs out. If the account starts to run low, they are going to do a cash raise, which means dillution of shares. Say the company is worth $300M and there are 300M shares (this is all made up). That means that the price should be $1 per share. If they raise cash and need to issue more shares (through new shares or convertible debentures or warrants or units) then the value doesn't necessarily change but the amount of shares will. If they need to issue 10% more shares, total share count goes to 330M and valuation doesnt change. Now the share price is $0.91 vs $1.
I'm all about raising cash where necessary if it there is a direct correlation to an increase in EBITDA, otherwise, it just pushes share price down..