Sunniva Inc SNNVF

Possible acquisitions in California

[sunrize]

Holler: "You will see us make some moves now" or words to that effect, in California.
Question: Where would they get the money from to do so? Dilution coming?

[JMark80]

I guess so, but what other moves do they need to make? Retail? What they really need is long term supply contracts.

[sunrize]

JMark80: With the existing cash on hand, minus the $10 million or so needed for California ops to start, any acquisition has to come from dilution, imo. If not, how else? As to what would they acquire, that is what I am pondering too. Cannot be another grow facility. Most likely retail such as clinics.

[BuyLowKeepLong]

Dilution is the trending word for unexperimented investors. Sometimes, buying a company with shares is not dilution. What is an 'Accretive Acquisition'   An accretive acquisition will increase the acquiring company's earnings per share (EPS). Accretive acquisitions tend to be favorable for the company's market price, because the price paid by the

[sunrize]

Thanks for that explanation, BuyLowKeepLong. I am really hoping that it will be an accretive acquisition or acquisitionS.

[Bluechip2]

if the acquisition is in the same range as Cannaroyalty acquisition of Floracal then financially it would not be a burden for shareholders as the assets would compliment growth strategies

[JMark80]

Accretion and dillution are not antonyms. Equity financing always reduces your proportional ownership in the company.

[BuyLowKeepLong]

I prefer owning 1/10 of a 3M company than 2/10 of a 1M.

[JMark80]

That's because you're an "experimented investor", right?

[BuyLowKeepLong]

Yes and because most people invested in CSE and TSX-V weed stock think company will never need money. It's venture and venture mean you will need money at some times, it 's why we are public. If Sunniva never needed money, why go public? Think about it. With all that said, they did a first public round of financing at 9.75$, wich is not bad,  i'm REALLY DEEPLY invested and a

[Bluechip2]

the upside begins with debt financing announcement. Not only due to minimizing share dilution, but demonstrates to the investment community the level of confidence a tier 1 bank has in this management team. With legalization and broader investment streams coming on board, financial advisors will be looking at management teams competence in growing a small business into a potential conglomerate

[GOTMONEY]

Amen to that. Even still, I see 2018 as a year for accumulating shares. 2019 will be cheap as well. The real upside will come 2020, 2021 and onwards. Eventually, the company will be printing money and we'll be able to start talking about dividends and buybacks. Seems far now but that is the trajectory. The company is building a solid foundation for the future so we don't need to rely on

[Bluechip2]

@GOTMONEY- that will be hard to predict as hype will be a factor at some point as well. Once people figure out (by Sunniva demonstrating via supply deals) that the California market is finally open to large players and the head start on scale production of cGMP product it may grow quickly well above what prudent financial analysis would indicate. When one looks at pharmaceutical companies getting

[JMark80]

You're more than likely right. $80 million didn't seem to go far. They could attempt non-convertible debentures, but they're already financing both facilities through debt. Holler is quite wealthy, maybe they could do a shareholder loan agreement. That probably won't happen, would be nice though if mgmt actually had skin in the game.

[WhiteW0lf]

Could you tell me where you found the interview in which he said that?

[WhiteW0lf]

About the upcoming moves*