Chalice Brands Ltd CHALF

How Businesses Fail: Look for the Signs & Similarities

[RebeccaG]

                                 $0.4836-0.03607 | -6.94% 
A business that is threatened with closure or ceases operations due to non-profitable operations thus, causing the creditors to lose money. Chalice has been struggling for many quarters with growing debt and being cash-strapped to operate thus impacting the stock value that has deteriorated by 98.5% in 7 years and 53% in 110 days after the gamble of the consolidation or reverse split and increased borrowing by 45% compared to Q1.
I offer my analysis to the investors and the board of directors to at least inject some professional remedial input instead of hiring ignorant manipulators that do not understand how businesses operate add to that damage the business image beyond repair.
Reasons for Chalice Business Failure
1)      Lack of an effective board – and there are plenty of warning signs to indicate when boards are in over their heads for years.
2)      Complexity: excessive complexity is often a root cause of corporate failure. When flaws begin to appear without being remediated
3)      Poor Communications:  corporate collapse has been spearheaded by communication lapses. After all, even the most effective board cannot lead an organization if it’s not kept in the loop by a self-serving management.
4)      Risk Blindness by the Board & upper Management: They get their $350,000/a year plus bonus! Why worry? problems are ignored – which give problems time to grow and to fester,
5.      Unhealthy company culture: Poor company culture is another major culprit in terms of corporate failure. Businesses that place a hyper-intensive focus on driving stock prices up by hiring ignorant manipulators  often foster cultures of double standards and deception – which go on to facilitate questionable practices. Just look at the two words or one sentence insulting posts directed towards any constructive opinion.
7.      Not enough working capital, negative operations cash flow (-1.5MM), sinking in debt, growth of debt (like the Q2 45% increase in debt by $3.6MM) to hit $11.51MM compared to Q1 debt of $7.9MM.
8.      Systemic failures: Systematic failures also present a huge external barrier for corporates. After all, when government policy is stacked against the interests of a company or existing regulation facilitates reckless decision-making, those systematic failures pave the way for disaster..
9) Unpaid debt and debt maturity in 2022 spells a threat of a hostile takeover by the debt holders and taking the business private which spells a disaster to shareholders