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Chalice Brands Ltd CHALF

Chalice Brands Ltd. is a U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution. The Company has 12 retail stores in Oregon operating as Chalice Farms, Homegrown Oregon and Left Coast Connection and is distributed nationally through Fifth & Root.


GREY:CHALF - Post by User

Post by PortlandBlazeron Nov 17, 2021 3:15pm
158 Views
Post# 34137647

Q3 expectations

Q3 expectationsQ3 is expected to be released after the market closes on November 23. 
 https://investors.chalicebrandsltd.com/press/chalice-brands-to-report-third-quarter-2021-financial-and-operating-results

CHAL Pre-released that they would achieve record revenues, and gross margins would expand to 46% . 
https://investors.chalicebrandsltd.com/press/chalice-brands-ltd-pre-announces-third-quarter-2021-results-with-record-revenue-of-8.0m
"This total reflects a full quarter of revenues from the Company’s Homegrown Oregon stores but only $0.1 million of revenues related to Cannabliss."
"Estimated gross profit margin for the second quarter 2021 of $3.7M or 46% gross margin compared to $2.1M or 34% in 2020. Gross margin improvements are due to continued growth in sales of vertical products manufactured by Chalice and increased third party processing revenues."

At the time of the Cannabliss acquisition, CHAL announced that they were paying 0.8x revenues with a price of $6.5 million at 0.8x 2020 sales. That suggests quarterly sales of approx. US$2 million (calculated as $6.5 million / 0.8x / 4 quarters) https://investors.chalicebrandsltd.com/press/chalice-acquires-cannabliss-retail-chain

If Q3 will include only $0.1MM from Cannabliss, that suggests Q4 will add $1.9 MM (calculated as $2.0 million less 0.1 million). That suggests that even with zero organic growth or synergy, Q4 revenue will be $9.9 million (calculated as $8.0 million plus $1.9 million)

Subsequent to the end of the quarter, CHAL announced they would raise $10 million on a best-efforts basis.  https://investors.chalicebrandsltd.com/press/chalice-brands-announces-private-placement-of-up-to-10-million

That's what I'm expecting.

I'd also like it if management could give us the tools to make our own estimates.
What's the current run-rate of revenues as of mid-November?
What's happening to SG&A as a percent of sales?
What is the Q3 same store sales growth?
What's the progress on the $10 million private placement?

I also note that Boddinger / RebeccaG have not provided a single calculation of anything, have failed ot provide links to any source documents and have shown no evidence they have ever read a CHAL financial statement. I am thankful CHAL management ignore it / him / her / them.
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