Sunniva Inc SNNVF

Anyone know why

[sunrize]

Here is an excerpt from yesterday's PR "......Gross profit margin for the second quarter of 2019 is expected to be a loss of approximately $1 million primarily due to the lower sales of cannabis products in California..."

Why were sales of cannabis products in Cali lower?

[BR0MANG]

I believe it’s because the black market business is booming in Cali

[sunrize]

I truly hope that it is not because of the black market that sales in Cali declined. Again mgmt did not do a good job of saying why sales declined. Did they decline because they did not produce as much oils because less biomass was purchased or did they decline because they couldn't sell due to lower demand. Everyone is focused on the utilities issue but the bigger concern I have is the sales

[JMark80]

If anyone is wondering what negative gross profit means (Q2 is expected to be -$1mm), it means that revenue isn't able to cover cost of production and sales. Yikes!

[sunrize]

@JMark80, So what is (are) the reason for that? How can they go from positive gross profit to negative in just one quarter?

[TickTockStocks]

Pretty sure they said it in the last release. They have no money. They can't buy 3rd party biomass, extract/resell it which is how they made most of their money last quarter. You would think that they would at least try and get some 3rd party extraction contracts for some revenue knowing this was coming down the pipeline. The whole things stinks and to be honest I think that Pedersen knew all

[mulletator]

Sunniva is not like Wayland.  Wayland was a shell game.  They propped up BS shell companies.  Sunniva now has only one real asset, the greenhouse.  The OK falls situation was a disaster due to lack of money for sure.  They will be getting a decent amount for the land though. The press release was bad. really bad.  The power delay doesn't really bother me. 

[TickTockStocks]

Sunniva is not like Wayland? That is your opinion. Much like Wayland almost everything but their super delayed facility is all that remains. Management is a spectacular failure. Execution rate is abysmal. Failed revenue guidance. Cash poor and making terrible deals to continue running on fumes. Inability to raise financing. Like honestly, I think you are not being honest with yourself here.