Flower One Holdings Inc FLOOF

what is happening with FONE

[Rightone]

is anyone running this ship.  this is so embarrassing and it looks like the principles have taken all of their money and left us hanging.    WTF

[Socrates88]

The ship is floundering....cost structure is too high, Nevada wholesale is very competitive so little margin....they have defaulted on their lease/debt....the final death spiral.

[Rightone]

dont where your getting your info..  they have not defaulted on their lease/debt. are you trying to shareholders to panick and sell so you can buy??

[balducci]

Is there some hair-splitting going on? Flower One sent a notice out last week. Sure sounds like they defaulted. At least, that's what the lenders say.  In light of the notice, I'm trying to figure out why the SP has only been moving up since. Weird.  TORONTO and LAS VEGAS, January 14, 2021  – Flower One Holdings Inc. (“Flower One” or the “Company”) (CSE: FONE

[Socrates88]

https://finance.yahoo.com/news/flower-one-receives-notices-default-213500966.html

[payt]

Anyone else read the latest news??  If you understand whats going on please let us know in simple terms. Flower One Announces Changes to the Board of Directors and Executive Management pos. stock.  

[Socrates88]

A restructuring and new money means the existing shareholders get crushed. This won't be pretty.

[sheeple1]

Correct, it won't be favorable for the current common shareholder. There was secured debt of $50M, private unsecured debt of $10-12M on top of $40M of convertible debenture debt. And now another $25M of potential debt (...albeit Convertible). Let's not also forget the sale/lease back obligations of $20M (and possible much more if they sell/lease back the main greenhouse). Large portions of

[Socrates88]

Your analysis is on point. Also note that margins in wholesale are very thin in Nevada as there is lots of production and the largest customers grow their own. Growing cannabis in a heavily regulated and heavily taxed industry is simply not that profitable. This won't end well. Illegal products from CA and Oregon/WA also depress prices.

[Toasted2]

(Post covid...) If revenues and cashflow are as anticipated they should be able to knock that debt down in decent chunks.  No question debt holders who are accepting equity anticipate so, but those investors having bought at higher prices will most certainly feel that dilution.. Perhaps a little "avergaing down" will be of benefit to some.