Aleafia Health Inc ALEAF

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:including debt that deal valued at $435 million

[Toweringmars]

I tried funding operations with some guys from Lending Tree once. They wanted hard assets to secure their investment. I told them I only wanted that free money. I was reffered to Money Mart... 

At the end of the day theres really only so many ways a company can get money. And frankly, one does not go 'public' just to not tap the public markets and instead take on loans...

So really, theres dilutive raises, and debt funding through debentures or convertable notes.
The debt financing we did was at a time where nobody was buying equity... And I mean nobody.

Look no further than Ianthus, who did so many scammy deals through multiple avenues that one fund took them to court on a clause where they werent supposed to raise any other capital through equity. Low and behold the piggy bank ran dry and Gotham (who had the secured debs) took 97.5% of the company through a 'recapitalization arrangement'. Albeit the CEO was caught up in arms length BS with them, they still took shareholders to the cleaners.

Moral of the story is that dilution is inevitable and should be priced in accordingly. We did what we had to when we needed an infusion and took on debt, but said debt has loomed in the back alley conversations on here ever since. The company has acted prudently in deploying capital, and has paid off the Emblem debt though available avenues.

Id much rather dilution than selling my soul to the antoni devils of the world.
Not to mention the clear signs that have materialized recently in our cleaning of the books, I would think such looming debt is nothing to be worried about.

Dilution Shmilution
 

wrangler327 wrote: It's a shame that management does not have an inside with the free money fairy. 

 

penismightier wrote: I would suggest you continue to just trade the stock. You think Aleafia would be $2 without dilution? It would probably only have the 13 acres right now. And look at every post I have made. There is no ego here. Where would any cannabis company be without dilution. Such a weak argument. For a year before the 25M was due, you were bringing it up. What happened? Got paid with dilution. At a higher price than anyone thought it would. Same story for the 45M. Least of our worries for this thing right now. Pen

stocktracker101 wrote: The $45 doesn't matter? lol. OK. Thats the type of ego trip I am worried about that I mentioned in my earlier post. Listen man, I love the company, but I trade it and I am honest about it. It's so profitable to do so. I'm not going to sit back and watch the roller coaster ride with out profiting off of the ridiculous 150% swings.. Depending on what their share price is next spring will dictate how much they dilute by. And it will matter. They can release what ever they want about paying it off but no one will drink the cool aid this time. When I initially invested in Aleafia they had under 100 million shares. We are now at 330 million+ and counting. Dilution Shmilution I guess. lol.. 200% +... With out it, Aleafia would be trading at $1.90 to $2 today. I realize they gained assets with it but it all came at a cost to shareholders.. I'd rather let other shareholders pay the dilution. It just smarter investing. Regardless, I am a buyer at these levels. glta.. PS.. on another note, what do you guys think international sales will be q1? There wasn't really much guidance regarding Germany... They mentioned Isreal orders will commence in q1 but no real clarity on if niagara indoor would be shipped through the 3rd party to Europe.. That could increase earnings estimates drastically. Thoughts?

penismightier wrote: Meh. Dilution, shmilution. Maybe if they put more cash in the bank, we'd be trading at 6 or 7x. That 45M ain't gonna matter. Pen.

stocktracker101 wrote: I don't know about big pharma. I still think it's early for that. Beverage companies for sure but they have a lot to chose from and the larger names will wait until the space is more developed. Canopy gave FIRE x9 earnings. The market is only giving Aleafia x4.5. So technically, Canopy overpaid. More legalization news out of the US could drive the sector higher but imo the larger CAD lps are overbought as is. Lots of shorting right now. To put this into perspective, Amazon trades at apprx. x5 earnings while Canopy trades at x34... Aphria x10... Its ridiculous. I like Aleafia because they are reasonably valued. But I don't want them to miss the next window. June 2022, $45 million is due. At $1 that would be a further 14% dilution. Let's see how it plays out

CMHarring218431 wrote: I get it. The concern is revenues will not surpass the need to raise capital to support operations. So, Who knows where the up and down sentiment of the market will head as we go forward. Just the speculation or rumor that a buyout is close , hopefully will cause a spike that will force a potential buyer to overpay. Stock, I know you do not speculate but calculate on the factual numbers. I need a little more excitement and like surprises. Take my chances, I guess.
Question. Just thinking......would an offer from big Pharma tend to be higher than one from a big cannabis player. After all, the larger number of possible pharma companies and even those like Coca Cola who have huge profits can and typically overpay cause they can