Heritage Cannabis Holdings Corp HERTF

RE:RE:Not much happening

[inviolablspirit]

bober2 wrote: Inviolablspirit, it's too bad Clint bought so many of these companies with shares.  The shares out are just below 900,000000.  If it the gross revenue is only 10 million dollars we're going to have see gross revenue in the 30 to 50 million range that's going take some doing.  Since the shares are so low he should try to buy back 100,000,000 shares over the next three years and continue to do so until he gets in the 500,000,000 shares range.   Consoldiation is not the answer and a takeover won't do much for the price of the shares except the shareholders will end up with less shares.  I guess patience and waiting for better financials should increase the price of the shares over time.  Aurora is not making money and keeps consoldiatiing until it's taken over or gets delisted.  Remember the original Cannacure investors bailed as soon as Heritage was listed and made alot of money and it was downhill from there.  Where were the believers then except for their pocket book.  It was a promotion we as shareholders got taken to the cleaners because we were the second wave of investors coming in to invest and we are paying the price now.

According to their financials the company is already pulling in a gross revenue of $10 million per quarter for an annual runrate of $40 million for the year.  The company has made a little over $20 million in gross revenue for the first 6 months ending April 30.  They have a net revenue of just over $14 million and a net income of $5.6 million.  If the company does an NCIB (share buyback) the max they can do is 10% of the stock, so that's about 90 million shares.   Let's say over the course of the buyback the price averages 7 cents a share.  The cost to buyback 90 million shares would be around $6.3 million.  In otherwords, they could buy back most of the shares they gave out for the Premium 5 acquisition.  

At these low share prices it may be a way to use some of the money coming in.  There are quite a few companies doing share buybacks while their stock prices are so low.  At this point, the company should be streamlining their business and reducing expenses.  They should be able to buyback shares and reduce their long-term debt.  If the company can clean up their balance sheet, that too goes a long way in helping to increase the share price, as institutions love clean balance sheets.