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Delta 9 Cannabis Inc DLTNF

Healthcare Cannabis
Delta 9 Cannabis Inc. is a Canada-based vertically integrated cannabis company. The Company operates through three segments: Wholesale Cannabis, Retail Cannabis and Merchandise and Devices, and Business to Business. The Company sells cannabis products through its wholesale and retail sales channels and sells its cannabis growing pods to other businesses. Its cannabis products include dried cannabis and pre-rolled joints. Its edibles and vapes include vape pens and concentrates, edibles, and drinkables. The Company, through its wholly owned subsidiary, Delta 9 Bio-Tech Inc., is a licensed producer of medical and recreational cannabis products and operates a 95,000-square-foot Health Canada licensed production facility in Winnipeg, Manitoba, Canada. It also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand. It is focused on producing and selling cannabis oils, extracts, and derivative products.


GREY:DLTNF - Post by User

Delta 9 Cannabis Inc > Be Careful Here
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Comment by tcastleon Mar 08, 2021 4:13pm
228 Views
Post# 32745484

RE:RE:RE:RE:Be Careful Here

RE:RE:RE:RE:Be Careful HereYou're painting the completely wrong picture here. If these debentures do in fact lead to a dilution, the price of this stock will have to be over $1.21, which translates into a market value of ~$123m. The dilution would be only 9.75 million shares ($11.8m in debs = 11,800 debenture units * 826 warrants each = 9.75m shares). This is less than 10% dilution (102m shares outstanding now), and this is only if the share price rises over $1.21. If it doesn't, then D9 refinances the debt with existing credit facilities or a new term loan, and the debentures are gone and we carry on. 

Also, an additional chunk in debt for a growing company is of no concern to me. As long as the return on cash is higher than the interest, it is a good use of funds. Judging by their revenue per sq ft metrics (one of the best in Canada for weed retailers), I don't see this being a problem. 

Curious how you arrived at 20+ mill stock and 10m warrants. Maybe I'm missing something..? 
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