Their last presentation confirmed that they received the Delta proceeds.
The last formal Presentation on the website was dated January 4 - and I don't see a mention of their having actually received the $6.65 million (and they wouldn't have by then), but they did state the facity was sold. I think you're referring to the News Release/Corporate Update? Regardless, I don't see it mentioned there either.
It says it was sold, rather than there is a sale agreement pending closing. They could not say it was sold if it had not yet closed (they would have to say that the sale was pending if closing had not occurred). There may be some holdback component, but they could not say it had closed if it had not actually closed.
I didn't question if Delta was sold - I said I don't see any notification that they received the $6 miilion cash. Are you saying they sold Delta and already had the cash on January 4? Then why did they not just pay the $7 million - instead of borrowing it in the form of a cash advance on cannabis sales? That makes no sense.
Revenue was up 61% quarter over quarter from Q2 to Q3 in the cannabis segment.
Yes and no - it was deceiving, Zena's financial statements -
Q3 revenue was $ 23.7 million and
Q2 revenue was $ 27.4 million
My statement is accurate. I noted that I am referred to the cannabis segment. I recognize that revenue declined in line with normal seasonality for the propagation segment.
I agree - my statement is accurate as well as I said sales from Q2 to Q3 were down, and they were.
"...Zenabis Global (TSX: ZENA) this morning released its third quarter 2020 financial results, reporting revenues of $23.7 million on a net basis, along with a net loss of $17.0 million. Revenues were down 13.3% on a quarter over quarter basis, with the company being quick to highlight that it had net revenue from the cannabis segment increase 61% quarter over quarter to $19.0 million, rather than reporting its overall revenue decline.....".
What matters for ongoing operations is the cannabis revenue, rather than the seasonal propagation revenue. I get it, and that is why I was specific in my reference to the cannabis revenue.
Agreed - but the orignal discussion was on Q3 and Q4 year end, not the selling of Bevo and ongoing operations after that
We no longer owns the Bevo segment, and so the overall revenue decline from Q2 to Q3 (from reasonality) is not relevant.
Not sure what you mean - Bevo was owned by Zenabis as of Dec 31/20 - so the numbers for Q2 and Q3 in 2020 are still relevant. The first quarter numbers for 2021 will be out mid-May and those won't reflect BEVO
The value of a business is dependent on its ongoing operations plus its non-operating assets. We no longer own the Bevo assets. Their results will not be included from an income statement in the Dec 31/20 numbers, as they would instead be recorded as earnings impact of non-continuing operations. Regardless, it does not impact ongoing value. The propagation business, and all of its revenue and earnings, is irrelevant to Zenabis now.
No - that's just wrong and I think you know better. A Balance Sheet is a statement as at a specificifed date - ie Sep 30, 2020 and an Income Statement reflects revenue and expense for a specified period ie Oct 01/20 to Dec 31/20. As such, Bevo's numbers will be shown on both documents (although there'll be a lot of notes on the financials)
In regard to Q4 sales - it was Zena who announced a downward/revised guidance on Dec 21, so if they lost $17 in Q3 (ytd $40 million) - then so it's not unreasonable to expect another loss of $15 million for Q4 - and 2020 NET Loss in the area of $55million.
I have read and understood these items. I did not make reference to them. I actually expect the 2020 net loss to potentially be higher than you anticipate to the extent there remains a loss to be taken on the disposition of the Bevo assets. But I am looking at the value of the business on the basis of ongoing operations, rather than its balance sheet.
But I DID reference lower Q4 guidance - and your post was in response to mine. Regardless - it's agreed Q4 revenue will be down and there'll be a ytd Net loss of $55 million - or more.
The other upcoming debt is now only $12m (latest investor presentation).
Again - I think you're referring to the Corporate Update - but what those numbers are talking about are the long term financing debt which was reduced with he remaining amount re-financed.
Yes - $12 million of that is <2>
However, that $12 million is completely separate to what I was talking about - I was talking about is the short term debt - a totally separate liability shown under a different Liability section of the Balance Sheet.
Not sure why people don't realize that the two separate numbers have to be totalled to arrive at the total debt owed.
Because what you are referred to is total liabilities, rather than total debt.
All you have to do is look at their Balance Sheet - it separates debt and liabilities - but then combines the figures into one sum, that they refer to as 'TOTAL LIABILITIES'
So - what they owe short term is the $12 million you mention, plus $25 million accounts payable (plus some other debt if you check the balance sheet)
When Q1 numbers come out - I assume Bevo would also take some of that debt with it - but we won't know those actual numbers until Q1 numbers are released in mid-May.
No. I was actually referring to the investor presentation, which provides a table of the existing debt, which includes the short-term debt. I am not referring to the accounts payable, which is not debt, but is instead another form of current liability.
Again with the semantics - call it debt, call it liability - whatever you call it, the TOTAL amount that Zenabis owes in the shorter term is $12 million plus current payables or liability of approx. $25 million, plus some other misc amounts - for the sake of argumnet, lets' just round debt and liability to $40 million.
To suggest they only owe $12 million - and not mention the other $30 million - is misleading and not representaive of the true debt/liability/amount owed/obligation or whatever else you want to call it. It is significantly more difficult to service a $40 million debt/liability than a $12 million one - so a fair and reasonable figure is the true $40 million.
I think you should read the latest investor presentation. It provides a decent picture of where things are at now.
Sorry - RG, it doesn't in the big picture. It's just an update dated early January and until the Q1 and the year end numbers are sorted out with all the transactions, sales and expenses split offs, we won't truly have a picture of where things sit - and either would the internal accountants or external auditors at this point. It's not an uncomplicated matter.
Actually, it does in the big picture. It provides a relatively clear picture of changes in the financial position of the company. It at least provides a picture that is sufficient to understand the general impact of the sale of Bevo.
Nope. It doesn't - and it can't.
Yes - what it does do, is give a clearer picture and summary of the capital debt, specifically the approx $55 million of which $12 million is included. That is not the bigger picture of Zena's total situation as will be shown on the financial statements once all accounting adjustments and transfers are calculated.
Zena does sit in a better financial spot - but still has work to do on debt.
That is true. I agree that work is required on the debt. I did not say anything to the contrary. The current financing to takeout Sundial is another positive step.
Thanks for the intelligent conversation. This is not bashing or pumping, it's informed discussion - and one of the few I've seen on this board.