RE:TimeThat is a big question mark.
This response is not comprehensive / exhaustive, and the financials should be reviewed directly (link below)... and of course, none of this is meant to be positive or negative, just some facts (and nothing I post is meant as advice).
https://www.sedar.com/GetFile.do?lang=EN&docClass=5&issuerNo=00036450&issuerType=03&projectNo=03058820&docId=4724591 Here are a few factors / excerpts... quarterly perspective, as of end of March (unaudited financials).
- One side of the books (not including biological assets / inventory, or "other income", etc.):
- Around ~3.5M cash and ~1.1M receivables / prepaid expenses
- Revenue of ~250k (after tax / production costs)
- Other side of the books (not including stock-based comp, or promissory notes, etc.):
- Accounts payable / liabilities around ~5.5M (due in 12 months)
- Operating costs around ~1.4M
- Loan repayment around ~216k
It should be noted thought that they have lots of inventory ~8.2M (I believe at an assumed sale price of ~$1.64 gram average?). But it's not generating revenue if it's in the vault, so didn't place it above.
And if / when Germany starts (shipments), there will probably be two factors there to consider from a cash flow perspective: (a) that the initial shipments (first couple months) of each contract are smaller to begin with, and (b) that it will become a receivable and it will likely take a modicum of time to get the first actual payments received / into the books.
One thing I am not sure of... assuming that BavariaWeed GmbH is one of their partners and is presumed to be agreement #2 (I gather this based on this board / postings, and going to the BavariaWeed site that they must certainly be at least one of the partners)... does they German partner also not need to get EU GMP certfied? (if they are, BavariaWeed is currently not listed on the Eudra site as having this certification). An item I am unclear on, and any insight is appreciated.
To be expected until they become a revenue generating (and profitable) business, but should also be noted that Eve & Co did not meet their minimum debt service ratio for RBC... they are on waiver from RBC until April 2021.