RE:Level upNR Overview
Commissioning of the Facility
September 2020 vs. July/August 2020
Wonder if they couldn’t get a rep in from the manufacturer
So in summary no co-pack deals until October 2020
Canadian Expansion
Who is/are ‘Level Up’ is probably the biggest question mark in this equation
New company, possibly just being used for the licensing component
They outlined multiple pieces being required for the full spectrum of getting TNY to market
They won’t have a license until end of October 2020 minimum
No TNY in Canada until 2021 if I was a betting man
Beckett’s Trials
Moving forward with no dates tagged to the statements
12 locations in SO Cal to start with ‘potential’ to expand up to 2000 locations nation wide
How to set lowered expectations
Online Retailers
Walmart
Amazon
Shopify-Driven
Availability of all Beckett’s products in September throughout the USA
NOTE: We are in September now and they didn’t specify the year
Conditions Apply
Private Placement
18 buyers in for approximately $50,000 each
Institutional money primarily (inbound interest)
Just over $1 million raised
Doesn’t provide a whole lot of confidence that the inbound interest for $1m took a full 2 months to obtain (Just saying)
For those of you that say TNY doesn’t put out ‘fluffy’ news releases, this one is chalk full of fluff that continues to shadow the overall lack of progress IMO.
MDA Overview
Business Developments
April 6, 2020 – Shelf Life signed to distribute TNY products
July 2, 2020 – Phase 3 LBF fully licensed
August 14, 2020 – Contract manufacturing agreement signed with Level Up Infusions Ltd.
Financing Developments
June 30, 2020 – PP closed for $1,850,000
August 31, 2020 – PP Closed for $1,040,000
Overall Performance
Sales $34K Q2 (Q1 sales $173,665, Q4 2019 $62,463) ouch are we going backwards
Oddly enough they are promoting the uptick in sales from the same quarter in the previous year (standard practice)
Operating Loss $1.1m Q2 (down from $1.9m Q1) spending less and selling less
Working Capital $2.2m up from $1.7m in Q1 (Accessible is $2.9m)
Net Loss Q2 $3.6m
Key Mgmt Compensation for 2020 $936,176
Financial Liabilities $3.7m
Lots of stuff in here from previous MDA’s (copy/paste exercise)
Not even going to summarize the Financials, but suffice to say that this quarter doesn’t inspire confidence. Interestingly enough we have made $208,412 to date this year and spent just over $3.1m to achieve that. Cannabis was designated an essential service as COVID hit and we kept reading about the surge in demand and people stock piling. Apparently they weren’t stock piling TNY products.
I don’t want to say I’m speechless but I have patiently and sometimes impatiently held this for four years and it is getting harder to see the light at the end of the tunnel. I’m holding out ‘hope’ now (which is not a strategy) that they have a deal or two with co-packing clients that lights this on fire. It looks as though we won’t see that come to light for at least two more months. Suffice to say it will be 3 months and packaged with the next financials to pad any short comings.
AKAIAMWAAK may be right about the dirty thirties, which could come as early as today.
MJ1