A Rough Road AheadBeing realistic when companies make promises, promote and entice is very difficult for mankind because many find it easier to bite rather than research. For perspective, I will provide recent results of Pure Sunfarms (the lowest cost producer) in the Delta area to demonstrate the difficulties in the cannabis space. Its’ grow area is 1.1M sq. ft. Q1/20 net sales were $18M with EBITDA of $6.7M and net income of $2.5M. Also the top seller on OCS during Q1/20.
Annualized, the net income becomes $10M. Using AGRA’s share count of 1.3B, the net earnings amount to $.0076923/share. Since the latest results are of Sept. 30/19, does the balance sheet allow for growing and harvesting costs? If not, then what? You decide; with your head!