Sunniva Inc SNNVF

Listened to the conference call

[sunrize]

Twice. Took notes and here are my observations. Feel free to critique:

1. For just the very first time, Ted Ohashi asked tough questions and it is clear that Ted is still confused from the answers provided at the conference call. I bet Ted is still scratching his head. And I also bet that he shoudl have asked all the tough questions two years ago, instead of blindly pumping the shyt out of this company. His questions today were 2 years too late.

2. When Ted asked about what "re-financing the project" means, Holler said it involves "we are considering everything". To which Ted LAUGHED. That says it all. Go back and hear it for yourself

3. Holler seemed confused and clearly without answers. The "we are considering everything" means there is no clear plan. From day one, Holler's strategy has been one of make it up as we go. It is evident from the Canadian ops, said bank financing, spin off, lost opportunity with Canopy, NOT RAISING money when the sp was high, etc,, etc.

4. Even now, Holler does not have a clear plan forward. It seems to all hinge on the OK Falls sale. And knowing Sunniva is in distressed, dire starits, they will damn well make sure to pay the least amount for OK Falls, ASSUMING they even buy it. Sure, they paid $1.9 million already but what if they don't want to throw good money after bad?

5. Holler contradicted himself 3 separate times regarding how much money is needed to complete the Glasshouse. At first he said 8 million. Then he said 20 million, not including the chillers and boilers
Then he said they would get 5 million from the OK Falls sale. Huh? Just 5 million?

6. Absolutely confusing as to what the dispute is about and who filed the dispute. None of the callers asked for clarification. No clarity provided by mgmt. We are kept in the dark

7. They need 25 million in Vendor financing for backup power. No explanation or clarity provided as to why a vnedor would front up that much money and even if they did, what is in it for them? How much would Sunniva have to "give away" to get the 25 million in financing? You can bet it would be a lot

8. Holler said Barker is a significant shareholder. What if he starts unloading shares? 

9. Completion of Glasshouse is not the end all. Significant costs are associated in planting, harvesting, testing, marketing, distribution, etc. None of that was mentioned. Why? Because "they make it up as they go"

10. Kevin Wilkerson sacrificed LYTR Logistics and if he quit, there MUST be a strong reason. I can safely bet that he does NOT see Sunniva succeeding at all. Else, why else would he walk away?
This in spite of fronting his own money during the past bridge financing

11. If Wilkerson, who is in the know, walked away (clearly he was NOT fired), then how in the hell are we to assume that Sunniva will succeed?

12. Remember - Leith Pederson and Kevin Wilkerson walked away. A Co-founder and the CEO who sacrificed his own company. What is that telling us?

13. I am clearly not buying. It is cheap for a reason. The stock has been sliding down for 2 years now. You always thought there was a bottom but things have gone from bad to worse. I do not want to put a single penny more into this falling knife of a company.

14. Holler thinks he can manage all by himself (he said he is working more than 100% of his time for Sunniva)- that is a joke. One man sitting in Canada cannot manage what is going on in Cat City.

15. Lastly, legal disputes take a long, long time. Barker has deep pockets and pissed. Does not bode well.

[thebigbadbongo]

I Agree with most of your points but I dont see Barker selling anything at this point.. His shares are basically worthless at this price point. I think he has way more $$ invested than the value of unloading his shares at 30 cents. I agree there is no clear plan, but i do think it all hinges on the sale of OK. As mentioned earlier if that happens there maybe some path forward. Financing will be

[sunrize]

And what do you think they will get for the OK Falls site? Remember, they will only get 250K instead of the 9 million they thought they were gonna get for NHS. NHS is more valuable than a piece of land that is OK Falls. No, they will get nowhere near even 5 million for OK falls, They will get cheap worthless shares of CannaPharmaRX in return. IF THE SALE EVEN GOES THROUGH. Barker could still

[thebigbadbongo]

OK Land value is 7 Mil. so im guessing that would be worst case scenario if this deal falls apart and they sell to a non Cannabis Player.  I was on the call as well, they seemed very confident the deal gets done in its current form. But yes there are no guarantees. The Barker Sale i cant see happening.. assuming he has a couple million shares.. i dont know the breakdown of the shares but

[sunrize]

Sure its your money. What happens after (IF) the OK falls site gets sold?  You are expecting it to be the be all end all? Don't forget the pending 10% interest to be paid on the recent spate of financings. And with Holler, it has always been a moving target. Why would a vendor finance the 25 mill for backup power? No, the OK falls sale will mean very little for what they will get out of

[thebigbadbongo]

I expect stock gets a good pop. They have more money to draw it out and im out at over a buck so i make some money back. Or maybe i stay in, ill determine that after and if they sell OK.. the sale will generate some level of confidence that their is progress being made. So lets see as mentioned at these levels its worth it for "me"

[rborhi]

It's a risk, but at least it came back from .20 and closed in the .30's. Best case is that it's in all parties interests to see this through and get Sunniva to production, and they somehow are able to work towards that.  Any insiders or previous insiders with a load of shares have an interest in seeing SNN succeed, even if there is some short term pain to get there. As to the

[sunrize]

@rborhi: You said "Any insiders or previous insiders with a load of shares have an interest in seeing SNN succeed" Then why did Barker file a dispute?

[rborhi]

You're right in that things don't look good.  People file disputes and lawsuits all the time and may intend to follow through, or maybe just to prove a point and bluff to get some kind of settlement.  He has to decide if it's in his best interest to get SNN into production, or is he better off to run SNN into the ground.  If he still holds SNN shares, his best course if

[LeARnToTrADE]

This post has been removed in accordance with Community Policy

[sunrize]

@rborhi: You said " like that the share price recovered somewhat today, was it a dead cat bounce or is it oversold." That's because people look at 30 cents and think it's a great bargain (purely human temptation when something is cheap). More importantly, it is because people FAIL to look into details (see my other post regarding details of the dispute). Just because Holler

[HandyAfterall]

They have seemed confident about every aspect of their failed plans, all along the way. I would not take that confidence to mean much. They were also very confident they'd get canadian bank financing, back when nobody was getting that. What speaks louder than their confident tones, is all the management running for the hills. Actions over words, every time.  have fun,  handy

[sunrize]

Exactly. The fact that KEY mgmt people left says it all.  If they saw any hope, they would have stayed.

[hareniq]

This post has been removed in accordance with Community Policy