RE:RE:RE:RE:RE:benic now down 45%I think the company would be best to put out an update and really lay their cards on the table. Theres two scenarios I think happening right now...
1. Theres no way retail has this much firepower, IMO this being done by institutional investors. Who might I add normally do thier dealings on the ATS in dark pools. I think they're showing thier strength and holding the company hostage, be it because of the debs not being re-negotiated or something else. They waited in the shadows for the perfect time to strike, and low and behold are using our cash position to sound the alarm bells to bail.
Realistically it wasnt a bad quarter considering the organic growth we saw in both channels.
Sure I wanted to see more from UNIFOR and the international sales, but thats still coming.
Once we end this universal income, I mean CERB, and send everyone back to work, UNIFOR should pick up. Once the world normalizes so too should the international dealings.
We know we have an amazing portfolio of SKU's. Now the company needs to scale those propperly, and I think thats whats been happening, and the reason for the relatively quiet quarter. REDECAN had put alot of money into automation and streamlining their production, and by contrast we're ACTUALLY making money when they we're private. Who knows now that HEXO snapped them up, but it shows that it can be done. Our greenhouse is state of the art, and so too is Paris... Our outdoor speaks for itself... Our assets are fantastic. Now to make it all come together is another story.
2. Its anyones guess if they've tapped the ATM, or if this price freefall is part of that. Perhaps they'd hoped the numbers would make the price go the other way, so that they'd be able to dilute less. But here we find ourselves. With the need for operating capital they waited so long to do any of this so that it didnt show up in the Q2's (or very little of it did) that now they're forced to do so at these stupid levels.
Regardless of the reasons, we're kind of stuck dealing with this and floating in the wind. The company needs to make things happen, or we're left here paying for it.
We need to know what the recapitalization plan is, (frankly I think they should explore debt alternatives at this price... Like credit facilities.. Heck even EVE had like a 20m facility given to it.) And we need clarity on that 7m bad debt.
Updates on everything else would be gladly appreciated, and maybe fire up that monthly letter we we're promised?
The upside hasnt changed, its still there. They just need to start making the right moves, and if that means a change in management, so be it. I'm not here to defend anyone while we trade at 28 cents CAD. At this point id try Antoni or Verygood007 at the helm. LOL I joke I joke were all going a little crazy these days.
Ideally this is a temporary pain, and they do the right things. If not I can see a change coming. Its the BOD's duty to act in the best interest of the company. I've seen companies get funded by essentially low interest bearing bridge loans from directors or the BOD, and that could be another option pending on how truly vested these cats are..
IMO we're oversold and the market over-reacted. But I have bids in place incase I'm wrong.
vinneyquaw2 wrote: Averaging down was certainly something i've thought about, but i can't see myself putting anymore coin into this stock.