RE:To the sellers...Goodness, that was a brutal financial report.
As I said, I waited until Q1 results came out to make a decision on this company. A quick look at the numbers was all it took for me and I'm out.
Sad to see a promising company slowly degrade like this.
Management's quote that 'Vibe anticipates continued improvement in consumer demand' is absolutely ridiculous. WHAT continued improvement? Top line revenue DECLINED 25% YOY for Q1 after we ADDED locations. This isn't even a profitability issue, which could be understood with new locations, it's a total collapse of revenue at existing locations. They tried to couch this by providing vague guidance for Q2 to suggest improvement, but I'll believe the numbers when they show them.
'significant growth in cultivation output this year' - who cares? This division burns money.
'we expect to see a return to profitability in the second half of 2022' - Sure, sure, sure. I expect a lot of things by the end of this year, doesn't mean they're going to happen.
I was really pulling for this company, stayed in much longer than I should have. Ignored red flags (they stopped reporting individual dispensary revenues, company can't even bother to post 2021 YE financials and 2022 Q1 financials on the Financials section of their webpage).
The only bright side was that they burned less money than I thought they would (only $1.5 million - lol).
I hope that I'm wrong here and some of you end up making lots of money. I just can't justify losing my shirt again after Convalo/Boulevard/Ventura. Life lesson, I suppose.
Good luck everyone.