Sunniva Inc SNNVF

Okanagan Falls selected, breaking ground!

[scopro]

https://www.nasdaq.com/press-release/sunniva-inc-selects-okanagan-falls-site-for-canadian-facility-20180503-00999

[GOTMONEY]

Congratulations, longs! 

[vandenp]

[DrLink]

Never heard of doing site work (grading) before the close of escrow! They don't own it and already spending money on property. Well they definetly move quickly!

[Subchimes1]

I am not sure. But I think it is the seller paying for the work currently being done as part as the closing   conditions. GLTAL. Things are moving well. 

[GOTMONEY]

I'm really glad the company isn't losing a month + by saying, okay, we'll wait for the deal to be finalized before working on the site. They are moving as fast as they can. Very pleased and excited for the future.

[JMark80]

They're only grading the site. They're paying $7 million to buy the property that I don't think they anticipated and of course they'll need financing to build. I don't know whether or not they'll need a licence first in order to get financing. Alan Brochstein commented at Seeking Alpha and thinks the company at $350 million is quite overvalued, doesn't think they'll

[JMark80]

Forgot to say, Alan also mentioned the fact that it takes quite a while to receive a permit to sell. IIRC two crops have to be grown and tested, though that may no longer be the case. However, it is good to see them make some progress. 

[GOTMONEY]

Alan found a way to make himself relevant to the conversation by filling the niche of the Sunniva bear. He doesn't have real arguments or evidence to support his opinions. And by all accounts owning the land makes financing easier. 7 million is negligible compared to the overall cost of the project, and Sunniva has the necessary funds on hand thanks to the oversubscribed bought deal (twice as

[JMark80]

Alan's criticisms, without question, have merit. My point about buying the property was that it probably wasn't anticipated (i.e. money was earmarked for something else) and that they can't do very much without financing. So they may be doing site work now, but if they can't get financing soon then there will likely be a delay.

[JMark80]

Btw, you said site change affecting processing time is outdated, but it says otherwise in Sunniva's listing statement. Hopefully they are able to get financing before a licence. "Changes to the Company’s site location/address: Applicants at the Detailed Review and Initiation of Security Clearance Process stage must submit a new application in its entirety for assessment; the previous

[GOTMONEY]

Having differing opinions on a stock is a good thing, but I just don't find Alan's opinion to be especially persuasive. Which of his criticisms, exactly, has merit? That Sunniva is all talk, no action? That they won't get debt financing because Canopy didn't get it first? This is a guy who completely ignored Sunniva since before they announced going public in November 2017, and

[JMark80]

I don't share his belief that they won't obtain financing, though I think pre-licence is unlikely. I agree that it's not the best decision long term for the company, though it is for shareholders. I agree with his thoughts about NHS. I agree about timeline from site selection to licence to produce will take longer than 7 months, and I agree that licence to sell can take 6+ months

[castle123]

Check the records- Alan isn't always correct in his assessments!

[JMark80]

Agreed, and I think he would as well.