RE:RE:The More Days Pass....Thanks for the words therealmccoy. It's not surprising to see this financing.
This financing looks like a bandaid to me at $10MM gross. I don't think that's much money based on what I see as a high burn rate. Not sure but maybe there was a cash crunch on the horizon. I am surprised if they can sell shares at .55 since that's still over $97MM marketcap and I am not sure where the shares are coming from...from insiders with founders shares to prevent dilution or from new shares. I will have to read the updated news again.
Spring of 2021 I did say they'd need a financing and it came soon after as a bought deal and was oversubscribed. I was surprised (like the market) another one came in November, also a bought deal and not oversubscribed. At that time I speculated that the next financing had high odds of being a best efforts based on what I saw as waning interest in the story after the Nov. financing. And so it is, this one is best efforts and with a few warrants so it seems capital is not as free flowing to the story.
I think too many things have been said (just one example: no financing required for the foreseeable future....) that did not transpire. that is not good in a public co. Not good for me anyway, maybe for others this is ok but personally I lack confidence in those circumstances. And I am still baffled at the 168 staff/contractors.
I might buy here someday but not until they're on more solid footing. I am also going to speculate that a consolidation may occur eventually but only time will tell.
I was not familiar wth Bevo until Cubic but I did know about Zenabis. I think you made a good move selling when you did in my opinion. :)
cheers.
therealmccoy wrote: you called it spot on bandit69...... appreciate your posts on this company.....
years ago I owned Bevo Farms....., kind of like the "forefather" to Cubic Farms..... sold out before the Zenabis fiasco (glad i did)......
keep up the informative posts
bandit69 wrote: I would say that based on my own investing experience, and simple observations in their financials and operations (i.e. overhead) that as each day passes the higher the odds that there will be a financing.
A company can have sales and revenues and still hit a cash crunch (i.e. $1 in revenues does not necessarily = $1 in the bank) because it depends when those revenues trickle in to the bank account and cash flow management. Even if a company has superior cash flow management, cash can run short. It has happened to large corps just as with small ones. The only difference is that larger corps typically have better access to capital.
I don't know, I could be wrong but I am placing my bets on those odds.
The marketcap is still too high and has a further downward trajectory to go to reflect conditions in my opinion.