RE:RE:RE:Early exercise of warrants -> $ 867,854Xstorm2 wrote: What concerns me the most with the lack of news and recent transactions is:
The Hemp sale, 20 tons of Hemp Seed. My assumption without any updates on their behalf wound naturally be. They are not using the seed, due to declining sales. As a result they are doing a fire sale the seed to Korea. While promoting the growth of sales in that region. At this point I believe that is why we have sales regarding the seed. They need to do something with the excess seed.
Then the Warrant Exercising. Yet having us believe it is a “Strategic Investor”.
Let’s give Craig credit, that gentleman can raise money when he needs it. But what’s the million plus for?
Items such as, they word the release quite well actually. Towards operations of the company and or items such as, which any item referenced as “such as”, is technically going towards the operation of the company. But not for the purpose they describe?
Hey “Xstorm2”,
Hopefully I can clarify your concern about the 20 tonne shipments of hemp seed. NSP does not have bulk hulled hemp seed in inventory. After a South Korean client has placed the purchase order NSP then arranges to purchase the 20 tonnes of hulled hemp seed from a processor.
The orders generally are prepared as 20 x 1 metric ton poly lined bulk bags on pallets – my previous post used an example of 50lb. bags, stacked and wrapped on pallets. The $120k is still in the ball park.
The processor ships the 20 x 1 metric ton poly lined bulk bags on pallets to NSP who then loads the container and ships to the South Korean customer. This is why I suggested that most of the profit from these bulk shipments of hulled hemp seed goes towards ongoing fixed costs without a lot of added variable costs for now – no sales trips to South Korea, no expensive advertising/marketing campaigns, etc.
There are no inventory carrying costs as the bulk hemp is in and out of the NSP warehouse in a very short period of time (days I believe) and only ordered once the South Korean customer has supplied a purchase order and possibly provides a $ deposit. There is no excess seed owned by NSP and therefore no fire sale of bulk hemp seed by NSP.
Future container shipments will depend entirely on demand for more Canadian hulled hemp seed from the South Korean consumer.
Two things regarding the strategic investor:
1/ it really doesn’t matter who it is – the fact is that they exist &
2/ it also doesn’t matter how the early exercise of the warrants came about – the fact is that the investor put up the cash that converted the warrants to shares with the bulk of that cash ending up in the NSP bank account.
I think your concern about “lack of news” will be taken care in the weeks to come, again
JMO :<) *****
Be safe! *****
“Living in the sunshine” Always DYODD DKM