RE:RE:RE:Poor top and bottom-line with low and shirking margins. An acquisition will be made only if the reason to do so is compelling, otherwise the 28 is money in the bank. I think the purchase of both Lyf and GR were good moves and i support mangement in those decisions.
PUNJABI wrote: I used the figure of cash balance of $24m from the last reported results as a reference.
There has been other translations after the results which would chnage the actual cash balance as of today next quarter-end and after closing. They did raise gross $46 in June maybe around $41m net. Committed to spending $10-million on Green Roads $28 on Acq plus $5 on international capex. They are other ongoing Capex expenditures too. By now they would have lost another 5 to 7 million and more by the time they announce next quarter's results. There is $8.5m in term loan classified as current. If you account for all these most of that new money is pretty much accounted for or spent.
For manufacturing cannabis companies with gross sales of under $100 m the 22 % gross margin is not going to cut it. It would result in massive losses and the burning of cash. These are not Costco size volumes that will cover the overheads and make a big profit with low margins. . FAF had a gross margin of 37.5 % had a small $2.3m positive EBITDA but a massive loss.