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Bullboard - Stock Discussion Forum Chalice Brands Ltd CHALF

Chalice Brands Ltd. is a U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution. The Company has 12 retail stores in Oregon operating as Chalice Farms, Homegrown Oregon and Left Coast Connection and is distributed nationally through Fifth & Root. see more

GREY:CHALF - Post Discussion

Chalice Brands Ltd > Why create more debt by acquiring unsuccessful business
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Post by RebeccaG on Oct 28, 2021 2:24pm

Why create more debt by acquiring unsuccessful business

I do not want to anger anyone but these are issues that investors need to ask about. I know the manipulators & insiders have an issue with that but I'd rather be on the investor side to ask these questions instead of issuing routine "next Quarter" promises. I respect your honest opinion
Why create more debt by acquiring unsuccessful business and when management cannot run their own business as it is evident by the profit margins (-37%), Operational cash flow (-1.5MM) , Debt to asset ratio of 71.3 (which means for every dollar Chalice brands has, it has a debt of $73)!

Simply, when Chalice fails (failed) to make any profits in its current businesses for many years (the latest profit margin for Q2’s is MINUS 37%). How do you think they can fix or make any money from buying another struggling business that was a burden on the original owner, Ask Acreage , here is what Chalice bought into when it needs money for operations
A quote from the Acreage news release:
“With the sale of the *Cannabliss* retail operations, Acreage has exited Oregon which was negatively affecting the company’s bottom line and utilizing management resources. Acreage will focus its resources on its core markets which will drive outsized returns for shareholders”.
Comment by PortlandBlazer on Oct 28, 2021 2:34pm
From the CHAL press release, Cannabliss was a money losing operation, it cost $6.5 million to CHAL and was bought at 0.8x revenue. So we know revenue was $8.1 million, or $2 MM per quarter. We know Q3 was pre-announced as $8 MM in revenue with a 46% gross margin. So unless you think Cannabliss had a negative gross margin, the acquisition will contribute to CHAL gross margin. How much and when ...more  
Comment by RebeccaG on Oct 28, 2021 4:07pm
I guess all insiders can do now is make promises and dish out confusing fake news. They said the same after every acquisition and look where the stock is today? $0.57 in other words $0.57 ÷ 23 = $0.024 or 2.4 cents only. In real numbers, lets go back in time to two crucial periods: Company started as Golden in 2014. Stock was ~ $1.35, Today, stock os $0.024 Mathematically, in 7 years, GLH ...more  
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