RE:RE:RE:RE:RE:Oct 21,2020 Cannabis Sector Is Ripe For More Mergers AndSorry for the slow reply was out last night with friends, they dropped the slae price of the Cannabis by $1200 a kg that comes out of the profits. So where the number of Kilos and revenue generated increased the amount of profits per KG dropped quite a large amount.
Now take away they distribution revenue and profits from the last 4 ER's go ahead
Now is this company still work $5usd a share with out it? would a company with Revenue in and around $45-60 million and cash burn in the $100 million range still be trading at $5 a share?
Again the last ER would be $60 million with a cash burn of $100 million
The answer to that is no they would not.
kingbear wrote: This is one of the dumbest things I've read on here, and that's saying something. They paid 80M for CC Pharma. Of course they can survive without CC Pharma. You do realize the cannabis business is the part that has 50% gross margins right? CC Pharma has what 15% GM? Saying they are a distributing company first is the dumbest statement I've ever seen, you just lost all credibility.
Profititability drops quite a bit? Their EBITDA went up... No they won't spend 100M again. Wow you know nothing about this company or finance in general.
TheGrapeOne wrote: Are they a Cannabis company?? the main source of revenue for the forseable future is a distribution company they bought.
So question is then can they survive with out the distribution comapny? can the distribution comapny survive with out the Cannabis? The answer to the first one is not fo very long the answer to the second question is yes. Until that reverses and this comany could survive soley off the revenue from Cannabis they are a distribution company first.
and Right if they dilute and use the $100 million that gives them $500 million Are you saying that they 100% will not spend $100million next 1/4 like they have consistantly spent? Remember they are selling more Cannabis now but at a discounted price ($1200kg lower)
Which means profitablity drops quite a bit
kingbear wrote: I'm not happy with the SP but you are not making any sense? Decreasing revenue? Cannabis revenue was up 22%, who gives a *** about German distribution revenue, this is a cannabis company pal.
If you paid any attention you would see 60M of the 100M cash decrease was due to one-time events... They also have a 100M shelf they can use to get back to 500M in cash. They will be cash flow positive in Q3. I think Simon has to go but I have to say you are spreading misleading info.
TheGrapeOne wrote: APH has not prospects stop spreading false information and articles that have nothing to do with APH
How can a company with only a years worth of funds to opperate and decreasing revenue afford to expand buy buying a billion dollar company?
If they expand your shares will be worth $1 after the dilution
RReis09 wrote: Why the Cannabis Sector is Ripe for More Mergers and Acquisi Why the Cannabis Sector is Ripe for More Mergers and Acquisi Why the Cannabis Sector is Ripe for More Mergers and Acquisitions PALM BEACH, Florida, Oct 21,2020 /PRNewswire/ -- The cannabis markets continue to grow globally and across the North American markets. In the U.S. with the possible legalization of recreational use on the radar, large marijuana companies are looking at a $22.7 billion national market by 2023, and Canada's direct cannabis market is projected to double to 11 billion Canadian dollars ($8.2 billion) in the next six years. The markets are growing and so are the companies. There are two main ways for companies to grow and they are organic growth of revenues and the shortcut; mergers and acquisitions. Experts expect much more of the latter in the coming months. In fact, the competition has already begun with key M&A transactions in both Canada and the U.S. The activity in Canada is focused on the acquisitions of Licensed Producers (LP) and in the U.S. it's the multi-state operators (MSO). In Canada it has been the consolidation of LPs to grow revenue generation. In the U.S. is the addition of brands and retail outlets that is generating revenue growth. Reply