Sunniva Inc SNNVF

Current Status Update

[Bluechip2]

Just a quick point post for newer investors as to current status from what information can be gleened via public information.

- the next 3Q financials are due in and around November 29th. The 3rd quarter saw revenue begin at the SunOil extraction facility with supply contracts from High Hampton (Cali-gold), PureOrganix (Cannabis strategic Ventures) and Farmacy Phactory. As this was a ramp up/development phase, the revenue will likely be marginal, but expect large revenue in the 4th quarter as we see lots of product for these customers on shelves as well as a 4th contract that was signed in September with an undisclosed customer.

- California cultivation facility is expected to have first plant-lings transferred from the Oakland Vision cultivation facility in late December or early January for a first harvest in March, 2019. Most likely, the first 2 bays will be all that is online at this stage, with the remaining 6 bays of phase 1 being completed and entered into service progressively until June, 2019 completion.

- Canadian strategy clarity should become clearer by the end of November with numerous options on the table. With Cannacord Genuity involved in helping solicit strategic options, there is a strong likelihood either a partnership or asset sale to focus on US buildout are the two most likely options. With the increased likelihood of US legalization of medicinal cannabis happening sooner than originally expected, the previously announced spinout may end up morphing into a financing/futures arrangement similar to what Canopy and Aurora have put in place to allow them indirect entry into the US without breaching any exchange listing rules or banking conditions for financing. 

- the latest binding acquisition agreement of the Oakland Vision Project has given Sunniva an experienced cultivation team and 20 IP genetic strains to begin the House of Brands rollout in parallel with construction buildout. We should see the first premium craft flowers available for distribution by the end of the 4th quarter.

[3rd-Beach]

Tremendous - thanks.

[scopro]

When you say craft flowers by end of 4th quarter, do you mean harvested and on shelves by then? Is this not Dec. 31?

[justinpaul]

I’d love to see a non binding LOI in the next week or two with Canopy selling the Canadian assets natural heath services and the B.C. campus for cash, what could be fair value for these assets even though the campus is not complete, $200-250 million? Canopy has the cash... then sunniva focuses on building our Cali and expanding into other states with finished goods/ dispensary’s 

[Fabnaps]

The California construction isn’t Sunnivas responsibility and that’s part of the reason why it probably isn’t going faster. Can’t throw cash to speed up the construction because the building isn’t their property.  I would like to see Canada built out and stay part of Sunniva.. even a jv with a Canadian lp would be ok. Looking forward to some news...

[HandyAfterall]

It’s moving slowly because it’s not sunniva’s responsibility?  Whose responsibility is the Canadian facility?  I’d say this management team hasn’t exactly earned much faith. To say the Cali facility would be further along if sunniva was handling it defies precedence, I’d say. Have any of their timelines been met? have fun, handy

[igetthebag$]

Everyone here deserves better IR from this company with that being said only one way to go from here. I've beeen checking everyday to see if they received licenses from cali.... and today finally got it.  https://aca6.accela.com/CALCANNABIS/Cap/CapHome.aspx?module=Licenses …

[GOTMONEY]

Thanks for the link! I can't seem to find it... was it given today (Nov 17)?

[igetthebag$]

https://aca6.accela.com/CALCANNABIS/Cap/CapHome.aspx?module=Licenses if you still cant find it go on that general search , additional criteria and put cathedral city only  CHEERS things are really perking up down south hopefully some news and financials bring us back up

[GOTMONEY]

Thanks. I see a couple of nursery licenses - is that what you were referring to?

[igetthebag$]

Yeah looks like those first 2 bays should be up and running soon