Nextleaf Solutions Ltd C.OILS

Shelf Offering

[Adventurous]

This might be bad news, good news or neutral news. We simply do not know.

Worst case: OILS issues stock at bad conditions in a hurry. Chances this happens are minimal. Paul and als are big stockholders, company conditions look good, heavy volume on the exchange. In this case it would not be a shelf offering, we would be told bluntly "xx many shares at xx price" - not the case here.

Neutral: This is a shelf prospectus, meaning it is meant to do the paperwork ahead of a possible issue within a certain delay (possibly 3 years). For some reasons, Nextleaf wants this in its back pocket. Maybe a way to tell the market we are open to serious investors or banks that we are looking for good issuance conditions (low commission, etc).

Best case scenario: Why not issue shares to the best offerers, say next Spring when all the good news are out, at a high share price. Other possibilities: the issue would be for the purpose of an IP partnership, the purchase of another company or US expansion.

So far nothing new. Lets hope for the best.

[NeroAgain]

Anyone willing and able to elaborate on the following: wouldn't this be the way to onboard an external partner? Issues new shares, and give them out under agreed conditions? The staff (Paul and COs) won't like to, or be able, to just randomly transfer some of their personal shares. Disclaimer: I am positive, hopeful and do have some understanding of the stock market / trading, just never

[Adventurous]

Nero, Partnership is a desired objective. There was no other reason to structure the IP section of Nextleaf as a semi-separate 100% held entity. Some half of it is ready for grab. Didn't work so far with cannabis, might work with both cannabis + psychedelics. The key word in today press release is "mirror'. They intend to "mirror" i.e. duplicate for mushrooms what they did

[Salbrom]

No offence but that would be the dumbest move in cannabis market history valens merger with valens wth ???

[Salbrom]

If anything village farms would be the compnay to merge with end of story 

[Adventurous]

Salbrom - Don't hold your breath if you want Nextleaf to merge with Village Farms (VFF), a large greenhouse grower. There is definitely something about OILS you do not understand. End of the story.

[shneps]

Please go back and reference what Aurora Aurora stated. This is a "Preliminary" Short Form Prospectus.  Completing this paperwork is necessary for them to "potentially" raise "up to" $20M over the next "two years". Salbrom, please stop and think (or ask the question) before you nonsensically go rambling on. Stop hitting the panic button over something

[Salbrom]

That would be a great merger you know they supply sunfarms with oil already and yes I know what Nextleaf is about they came out with repeated notion that Nextleaf will kill the industry with prices you can't discount that okay some people want to vape strains no matter what the price is what's to tell you if Nextleaf start extracting strains will it really set them apart from other

[Adventurous]

Salbrom - You do not make more money by using champagne instead of low quality wine if your goal is to produce and sell wine vinegar. Or, more to the point, if you have like Nextleaf a technology allowing you to make champagne out of cheap wine vinegar.

[Salbrom]

Let's agree to disagree and watch it play out 

[BlueShips]

Companies will raise debt/equity for M&A activity, but that is typically done at current market values, not via shelf offerings. Also, the news release states the capital raised will be used for working capital, fixed capital expenditures and intangibles.  I don't think this has anything to do with a merger or acquistion.  - BS

[NeroAgain]

@BlueShips + Adventorous Thanks for clarifying, makes sense. I'll keep watching closely from Europe