RE:Nice to have Shai Altman at the helmStoneMan45 - (1/25/2021 10:25:51 AM)
Nice to have Shai Altman at the helm gotta love the volume we've been having...just wait till there is any announcement on the potential partnership. Nice to have Shai Altman at the helm. Having sold the Delta facility + the extra 7 million $ in weed or securities and secured a $60 million line-of-credit at decent rates , Zenabis is looking pretty decent . The $54 million debt paid off from Sundial (idiots) less the $6.65 million from Delta and the $7 million from the extra sold cannabis should have given them roughly $19.5 million room left on the $60 million line-of-credit. Future is looking much brighter
A couple of points -
It has to be taken as a positive that Zena was able to find a lender that was A) willing to take on the $60 million and B) do so at a semi-reasonable rate of 10%. (Make no mistake though - they're in it to make money and Zena DID pay a premium through other fees, charges and shares). Obviously, they're confident in the security Zena put up - and that Zena is either a 'going concern' on it's own or through a merger/buyout.
Your numbers above are kind of whacked though - they actually sold both Delta and Bevo, right? so good in the sense that they reduced debt, bad in the sense that when you have to sell off assets - there's an money issue.
The so-called $7 million sales of product was not actually a sale (yet anyway) - it was a pre-payment on either future sales or shares in place of sales. Either way - it was a cash advance and immediatley turned over to Sundial, so there's no gain in cash as you indicate. The $7 miilion will not show in sales, until some or all is actually sold - and will appear as a liability under 'Customer Deposits' - along with the other $35 million already shown on the Sep 30 Balance Sheet.
Speaking of other liabilities - everyone seems to forget that along with the $50 million in long term debt that was addressed in this financing that Zena owes, they still owe approx. $30 million in current debt and the $35 million in Deposits, so total debt still remains above the $100 million mark (less whatever % the Bevo debt amount was shown in those numbers - which will go away along with the Bevo sale)
SO - yes, Zena has roughly $5 million from the new financing, $6 million from the Delta sale and $10 million from the Bevo sale, let's call it roughly $20 million - but it's not 'cash in the bank' clear money - given they owe $30 million in current liabilities alone.
AND - Zena has still not yet announced the status of where exactly the $6 million and $10 million is, as I said before - it seems that it could still be tied up with the builder''s liens filed in court against them (Bevo was named as a co-defendent).
You are correct that Sundial is comprised of 'idiots' - and it seems likely that they'll squander their current financial wealth and drag Sundial down again - like they did in taking it from a $12 stock to .60 cents or whatever it is now. The bush league, incompetent deal with Zena is an example of management's ability, I think.
Some more work to - not out of the woods financially - but it does seem that Zena is working in a positive environment rather than two years of negative.