GREY:ALEAF - Post by User
Post by
sthineion Dec 31, 2021 8:35am
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Post# 34273291
All being said I think the recent financing was positive
All being said I think the recent financing was positiveThe $10 million financing thet arranged this year was just to give them time to arrange longer terms. They will use the current financing to reduce that financing by $5 million so only $5 million will be due in August of 2022. I prefer this at the moment than arranging some very dilutive share issuance which would have really been a bummer for share holders at this level. It gives them time to build the business and attract suitors and they could be many over a 2 year span with Germany moving to open up their market recreationally sometime next year, ALEAFIA gaining market share in Canada with DIVVY brand among the top 5 most searched brands on the OCS, opportunity for ALEAFIA to look at expanding to other provinces like Quebec and BC where they dont sell product, etc... IMO if Europe opens up further they will initially count on product from places where they have recently trusted to deliver quality product. Canada is at the top of that list. With a $40 million market cap it would be tempting for a European partner to gain an ownership position or stratgic partnership with a name like ALEAFIA which would seriously help to boost the share price. They still need to get that EU GMP Certification prior to other nations legalizing and providing export competition. They have a window here in which to get to work. Currently only Aurora and Tilray have the right to actually grow medical weed in Germany for sale domestically. Those two have a bit of a leg up on the competiton with the coming legalization of recreational use. Hopefully we see wholesale prices for ALEAFIA improving over the dismal prices we saw last year and continued erosion of the illegal market for weed which is where we can continue to get some domestic growth going forward. Benic had bought shares in the .30s and .40s and we also know Raf and Fantino want the opportunity to divest at higher prices so I suspect they are workig on a plan to move share prices higher over the next 12 months. Prices will definitely be higher. How higher remains to be seen. My initial target is .50.