We Have an Urgent Problem We MUST SolveWe have an urgent problem we must solve. (fear based marketing must be something new LOL)
Solution: Sales!!
Urgent problem solved. Hahaha.
I’ve been writing about the overhead costs and you can see the effects of it starting to appear already. Another 20MM will last them a few months with 150 staff at Cubic (for what?!! does that include Hydrogreen?)!! and no substantial revenues to back it up. Last financing was end of May closed early June? and they're already doing another and I just don't see any hints of revenues and cash flow coming for a long long time for shipping container installations. They even said some of this years revenues are delayed to 2022. I mean this is simple stuff. In my career we built ‘significantly’ larger much more complex things than this in much shorter time frames from inception to completion also all over the world. We also built things and got paid whether they sat in our possession or not. Even charged storage fees. We didn’t wait for site preparations. It wasn’t our problem. Even if it was part of the contract for site work, we still sold equipment and got paid before site work. Never a year or 2 later. Do car dealerships wait for you to have a garage? no, they sell you the car and where you park it is your problem so expect more chicken feed financings and dilution if this is the way it's going to be.
Past MD&A's (which is not in the latest MD&A. Shocker.): “In the short to mid-term period the Company expects to close additional CubicFarm Systems sales in Canada, that will establish the Company from coast to coast, additional system sales in the United States, adding to the current CubicFarm System in operation in the country; !!and the first CubicFarm Systems sales in China!! with a strategic partner that will position us to establish a significant footprint of our CubicFarm Systems in the country” (Why was this paragraph deleted? hahahaha)
From a past interview: Interviewer: Have you seen an increase in inquiries since the pandemic? ANSWER: “oh yes, and more significant and at a country level” (did they bring cash?)
From BNN interview Sept: “You will see several more Fresh Hub announcements in the near future” (what is considere near future? will this be after the financing closes?? or maybe next year? never? is it the supply chain's fault? haha)
They re-tweeted this article and said thanks for the mention “Cubicfarms Soonicorn” - https://cubicfarms.com/from-soonicorn-to-unicorn-which-bc-tech-firms-could-soon-hit-1b-valuation/ . (I would upload a recording of my laughter here but SH doesn't have that capability)
“word is getting around about Hydrogreen” wow that's so awesome. Are they bringing cash?
blah blah blah. I could go on but do you see a pattern here? The climate is changing even faster with so much hot air rising in to the atmosphere what happened to the fluffy ESG committment? And now a financing lower than the last and within a few months of the last one. My only mistake was covering my short too soon….but there will be more opportunities. The only good thing going for it is it is a bought deal but even then, by all appearances, it doesn't look convincing from my view. Watch to see if the overallotment is absorbed or not and how quickly.
When you see a crazy almost $7+MM annualized R&D and they are spending cash to retrofit and upgrade equipment, then it's my view this was not ready for market. And with so much ongoing R&D where does the retrofitting and upgrading stop or slow so they can actually generate revenues and God forbid some profits? Why buy something that might be upgraded or changed soon when I can wait for the final product and get the latest? whenever that will be.
Such amazing technology but that’s where it ends. Onwards and shortwards.