Sunniva Inc C.SNN

NO share dilution

[sunrize]

Someone asked earlier this morning if there is going to be share dilution. Well, let me tell you there won't be any as far as construction of the two facilities goes (Canada and California).

Sunniva sold the Calif land to Baker Pacific Group (BPG) and BPG is building it out of their own money. Sunniva signed a 15 year lease back from BPG. So that's that. Smart cookies.

For Canada (Oliver BC), CEO Tony Holler said construction costs will be from debt. He also says they have had several proposals from lenders. Listen to Tony Holler from the 1:50 minute mark below link:
Interview with CEO Tony Holler

https://www.cbc.ca/listen/shows/daybreak-south/episode/15494785

These guys are playing it very very smart. Interestingly, the co-founder Leith Pedersen came from Canaccord and is a "money guy". That helps in a bif way as far as "taking care" of finances, market cap/share prices, etc.

[Be2002]

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[Norcalcanuck]

Good info Sunrize and I agree with this in principle. They are unlikely to tap the market to develop the facilities. Management is focused longterm on shareholder value. Having said that I do beleive they will issue stock to raise capital to aquire assests in the future. This would obviously be accretive and should benifit share holders but something to consider . In my personal modeling I have

[sunrize]

Thank you Norcalcanuck. Agree dilution would happen but not until the pps is over at least $50. I also believe that since this did not start trading in the pennies, we will not see folks buying a billion shares and subsequently dumping them after an uptick of few cents. Everything about this company spells quality: management their goal tp produce PESTICIDE FREE, TOP Quality product their low

[adamchess]

That would make this a $100 CAD stock which is reasonable if management uses the funds to build the business in a big way (accretive, as you say). Without this, compared to others, we are still in that neighbourhood of value, but conservatively, minimum $50 CAD, and $75 CAD still reasonable. I am sure the wheels are turning to explore the vast possibilities this management has at its fingertips.

[adamchess]

I have seen enough to see that Sunniva compares favourably against the Big 3 (Canopy, Aurora and Aphria) and others at a fraction of the market cap! Still early days. GLTA