Delta 9 Cannabis Inc DLTNF

My Take on the News:

[StonksOnlyGoUp]

I think what's really scary about this news is that they've shown to be good with numbers in the past.  I would like to just reserve judgement on this seeing as their other offerings have generally led to good and accretive aquisitions but hard to imagine a deal that would be worth this kind of dilution.  9Mil shares and 9Mil warrants, diluting by 15% of the currently issued shares?  On the plus side SP hasn't dropped below the dilution value, hopefully that suggests investors are still hopeful and waiting for Q2 results to make decisions.

I was already thinking Q2 would proably not be profitable due to reduced sales as a result of the rapid inflation.  Now I'm worried it may be worse than we had anticipated.  The Uncle Sam's stores came with operating costs and if sales have dropped hard accross all the stores and have remained that way since Q1 then those stores may have become a liability.  If that's what John has been seeing, it would make sense that he might make an unfavourable offering at this price, before an unflattering Q2 result dimishes the potential offering price further, to ensure they have a safety net of cash to keep operating until things rebound, because who knows how long that might be.

As for me I'm still long and will stay the course, hopefully this is just another bump on the road.  And who knows?  Maybe they're picking up a bunch more stores that are struggling in this inflationary environment and they're buying them at an all time new low price that they just couldn't refuse, wouldn't bet the farm on it though :)