RE:RE:aphria cut expenses significantly ,zena 's cut areYes, Q1 is very important. However, reducing expenses by 10 million per quarter is no small feat. They won't have the 80 million in impairment this year nor will they have 5 mil in aquisition fees. Therefore, 2020 is shaping up to have far lower costs.
On addressing the debt. How can you say pushing it to 2025 is not addressing it? The alternative was paying 50M this summer which wasn't happening. I don't think any financial institution could lend them the 50M due to the risk. I think they did the best they could with the situation Andrew put them in.
Also, on their potential:
1. I can basically guarantee that they will make all their debt payments this year and then move on to 2021 where very little debt is due. No way the big boys pushed back their 50M in June if Zenabis wouldn't be able to make their debt payments to others in June and October (around 22 million due) and end up going out of business. (There is now 30M due because the big debt holders added another 10, also something they wouldn't do if Zena couldn't pay it back.)
2. Yes, there is an over supply in Canada. Ontario opening 100s of stores will do a lot to help reduce the over supply. Further, have you not seen that they are (pending approval) going to start shipping hundreds of kilos per month to Europe and possibly regular shipments to Israel too? They are also signing supply agreements domestically. They are seemingly doing quite well to move their product.
3. As we know, the big boys that are due 50M put in a royalty clause. They seem to think Zenabis can sell 20M+ per quarter. Their market cap is 20M right now. I don't think people realize how most competitors are valued at 2 to 10+ times revenue. Zenabis is valued at 0.28 times revenue.
4. Equity is 80+ million, market cap is 20 million.
It's hard to not think Zenabis is undervalued with the potential to shoot up.