RE:RE:As expected...."What are they financing? They just completed a raise in feb for the US expansion. LYF is bought and paid for. Broker warrants should bring in another 22 million. So they should have cash. I don't disagree with your logic. But I don't know what you think they need financing for...."
Well, to answer this and to make you understand the best way possible, i'll begin to answer your question with another question. I hope this is ok with you. Can we agree that even though you, i or anyone else here doesn't find a suitable reason WHY they would need to finance, that doesn't mean they don't have a valid reason or not to do so? Can we agree on this statement at least? If not, i guess our discussion ends here......if we can agree then continue on below...
Now that we can at least agree and say we some certainity that there could possibly be a reason (whether valid or not) they would do a financing, i'll continue and build upon my explanation with an analogy. I hope this is ok with you again? I know this isn't the norm for a straight up, to the point explanation but i think it's the most efficient way for you to understand. As for this analogy, think about this. I don't know what age you are, but if you're at least above 70 you may or may not get it. IF not and you're way below that age, i must assume you either have grandparents around that age or a lot older still alive or someone around that age.....hopefully.......for my explanation the older the better.
So if you do indeed have grandparents or other and are of European decent, the better. The next time you see them.....ask them about WWII and their experiences. I ask this because it's VERY relevant to my explanation for you to understand WHY Valens could possibly need (or not but still do) to finance. As for the WW2 analogy, if there's ONE thing that EVERY person who experienced that trajedy has in common is hardship and scarcity of basic needs for long periods during that time. Why is this relevant? Becuase the Pot sector has gone through a complete decimation for several years and almost 99% if not 100% of these companies were not able to get anything from anywhere. When the big money left and investors followed they were all abondoned and left to their own devices. Nobody cared what happened to you. For the companies, if you didn't adapt right away you either died out quickly or left to suffer bleeding out in a VERY long painfull ending.
As you are aware, these companies are extremely capex intensive and needy for continuous cash infusions. It is the nature of the industry. When the ceo's of these companies lived through this dreadfull time, most of which who would prefer never to see or experience again, it changed them internally & psychologically forever. As those who experienced the trajedies of WW2. I don't know if you noticed, but many if not all of those folks from that period, especially Europeans, are very prudent, conservative and financially stingy ontop of many of them being serial hoarders. Why? Becuase the exepriences of the war and the effects on them, kicked in a defensive mechanism to make sure NEVER to relive that again & make sure your ready incase it happens again.
So the finish my explanation, even though you or i don't find some absolute or valid reason for them to NEED to go ahead and do another financing deal, doesn't mean they can't or won't. Just Remember that these ceo's, or the ones that survived, went through an extremely traumatising period where not even the mob or their grandma would lend them money to JUST survive. Now that things have turned around and drastically changed for the better, don't you believe for a second that if the have the capability or chance to raise some extra cash they won't act on it....and act on it quickly. That's my take, but i also bleive they are some valid reasons they need to do it to.
I hope you now understand......if you stil don't.....well in this case and i can't help you comprehend more than this my friend.
Good luck & God speed