4 to 39 Stores in less than 2 years “We started 2020 with four retail stores and now have 39 cannabis retail stores in operation..."
I gotta admit this is pretty impressive retail presence growth.
But I still think it all doesn't matter if they continue to overpay/overdilute for rapid growth all the while they fall further and further away from generating a profit.
Smaller retail networks are faced with hypercompetition and dropping prices, rising overhead costs & ridiculous taxes squeezing them into oblivion. What's the rush to buy these stores?!? Its not DN's responsibility to bail out operators glad to ditch their unprofitable retail strategy.
I'd like to see DN wait, digest and sqeeze profit from what they have, prove their business model, and wait some more for better bargains, or at least never pay a higher price to sales ratio on what you acquire than what your own stock is trading at. Otherwise any accessible cash should go their NCIB supporting your SP in the market and unding some of that crazy dilution we took to the nuts recently.
They shouldn't use their stock as currency for anything less than a dollar a share. Its ridiculous that the company thinks $0.16 is some sort of fair price and then hand out ten of millions of shares for a few stores, diluting us all.
Rant off.
JMHO