From Yahoo finance discussions fter sleeping over this news release I have a slightly different opinion.
How much will they get for the crop ? 2m CAD ? 10000 plants, each 50g times 4 CAD b2b ?
They are trading at 0.02 CAD which is the bottom with current outstanding share count of 1.92b.
The market cap is 38m CAD which is undervalued because the partly retrofitted Delta facility incl all machines and the building alone is worth more than 25m. Now take their cash (approx 3m CAD) and shares from JJ Wolf as well as 5m Ogi shares into consideration and you have more than 50m USD which is 63 m CAD. Also considering their non revenue generating assets and Farmako.
I think its down because of the 1.92b shares outstanding and the very bad reputation this stock has mainly caused by (criminal) former management - Also market manipulation, hedge fonds etc play with us because its OTC and they clearly shorted this stock in 2019/2020. Even at good news (which are seldom these days) the sp price barely moves because of the enormous number of share float.
Assuming we are already at the bottom when calculating the market cap a reverse split may pay out if timed perfectly. The question is the ratio to bring sp down to a float of 200 - 300m, and also get institutions on board (who will be long) to reduce the float further.
It is now an important political decision when and at what ratio the rs split will be effective. For example if they announce that they sold the crop in August for x m CAD the share price will maybe rise to 0.03 CAD. There wont be a spike for 100% or anything on this news. On the other hand if they announce one day after the rs is effective a definite (signed) agreement to sell their crop for x years to y at a price of z CAD $, the sp will take off because of the reduced float and shareholder have a real number to calculate with.
I can sleep well again, gl to all longs