Sunniva Inc SNNVF

20 million sale nets Sunniva about 8 USmillion going forward

[thetis88]

Yes,-was dead wrong on estimating net proceeds on sale of land which came in around 15.5 million.
Good for Sunniva

From these proceeds, they must pay off the bridge financing in two days of 5.5 million leaving 10 million. Then there is the promissory note of 2 million due yesterday, leaving about 8 million Canadian or say 6 million US going forward to fund future losses  from operations, payables and commitments to buy equipment for the new glass palace.

Don't forget they have a commitment to pay 10.5 million in equipment per MD&A which must be paid for, and then installed before the building can be finished. Further , there was no cash to pay over 12 million in payables, that I assume are  still outstanding ,so thats 22.5 million  dollars in liabilities ,with 8 million US cash on hand to cover them. Plus, there has been a cash drain of around 2 million a month for last six months that I expect to continue.

Last, once the building is finished they will need to start paying over a 1 million a month in rent. That rent will continue for a few months while they test the equipment, , then the three or four months to grow  the final product , then another two months to collect their receivables , all without cash flow. Thats probably 8 months of rent ( 8 million plus ) up front,  with operation losses on top of that.

Yes,-its far more than I thought they would get for the land, but they are no where close to being  out of the woods yet. They will still need a PP . It's just a question of when, and I think they bought themselves another month.

[EFW5370]

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[canuckinvestor]

I believe they wiii have enough cash until September with  the sale of the Canadian property  they won’t have to pay rent on the facility until  it’s fully finished which is a drop deal date of September 30