RE:RE:RE:On fireHere is a copy of the Facebook trabscript
Had a great call with IR, Colin was apologetic for not getting back to me over the years and stressed the importance of their cash crunch and non-core asset sales. He stated everything is a balancing act, and everyone is working multiple jobs within Harvest One. No one wears only one hat. He had to reschedule as he had some large developments come up this morning to handle. I have paraphrased the answers.
When is the investor presentation available?
Complete the strategic review first. Not being neglectful, balancing act supporting core brands and everything on the table. Balancing assets, to financing, to debt. The presentation could change any day making it irrelevant. I have one ready now but there is no point releasing something that can change. Everyone is doing multiple jobs and I'm not only doing IR.
What is the current and future state of Lucky Lake?
Lucky Lake listed for sale a month ago. Not optimistic this is going to sell quickly. We've done reasonably well on asset sales considering the current market. We didn't overpay at the time, but in today's market we did. Cultivation is not the way to go currently, and we are driving to be asset light utilizing third party solutions. Largest growth is coming out of the U.S.
Satipharm Oil gone from Shoppers? Why?
United greeneries owns the sales license to Satipharm Oil on Shoppers, but Harvest One owns the IP and everything. Need to reapply or utilize the license loyalty if United Greeneries restocks.
Satipharm capsules in Canada, import or manufacture, where is it?
Import license only for R&D, still ongoing and is a priority for sales license. It needs a considerable amount of cash to get the project going so it is not a priority currently to manufacture in Canada
CBD Infused Dreamwater, where is it?
Not too cash intensive, versions are good to go, have gotten as far as they can before waiting for information from the FDA. No point spending anymore $ on it since they are awaiting approval. With Canada the rules may change, but they are not going to launch anytime soon in Canada as the U.S market is bigger. Is retail conducive to buying a CBD Dreamwater sleepshot? Hard to say currently.
Does HVT expect any issues covering expenses converting raw materials into finished goods. How is inventory turnover and is it a concern?
Don't want to give a BS answer, Inventory levels have a bit of trailing issues from United Greeneries, very happy with Cannabis 2.0 products. Liverelief haven't had any manufacturing runs or restocks in demand for the next while. Do not see any issues meeting demand for inventory levels.
What is the cash burn now?
Have most certainly dropped, trailing expenses and restructuring costs may carry over slightly as trailing.
Delivra has debt from AOCA for $1.75m @ 16%. Any issues renewing credit facility or refinance?
This is basically a grant with a GSA. It's very complicated grant/loan.
If you need more cash, can you finance or are you going to dilute?
Obviously anything is on the table, and with the current SP dilution is not or will not be favourable.
Andreas was paid a finders fee, why is he involved with the sale of UG?
It is a contentious issue that has been brought up, he knew the buyers in the area and made the connection for us. It is what it is. (He seemed a bit annoyed about Andreas).
In late 2018, Grant stated he expected cash flow positive by Q1 2019 and EBITDA positive in Q2 2019. How is he so wrong about these forward looking statements?
I can't give an accurate statement on what the future looks like, ideally if we had Livrelief and Dreamwater only we would be cash flow positive and profit tomorrow. Market and sales for CPG products have not been able to spend the marketing support it needs and unfortunately sales are not as strong because of this.
Interim CEO, is it working or will one be appointed?
Right now it is working until the strategic review is completed, most likely Gord would be good to step into that role.