THE Phantom MACHINE !!
What machine? Prove it Auxly!!!
That’s it !!
I gotta rant or or go mental.
I choose RANT!
Auxly couldn’t have shyte the bed any worse in Q3-2022 if they had downed 4 litres of Fleet before climbing in!
What concerns me most about Auxly’s Q3-2022 Report is the continued failure to bring automated Pre-roll packaging online.
Don’t get me wrong. Auxly has done a lot right and I have defended their approach on many occasions. I have been positive and supportive of Auxly for the most part but this one, crucial element has been a FULL FAIL so far and has brought Auxly to a precipice where it now teeters precariously in a windstorm of inflation and climbing interest rates.
Pre-Roll Packaging Automation !!!
This crucial step forward is still being touted by Hugo, Mike and Brian as a game changing enhancement to the business.
So where is it?? As of now this thing is starting to look like pure BS!
The Pre-Roll packing upgrades were initiated more than a year and a half ago when the equipment was ordered.
For all intents and purposes it should have been up and running a year ago. Instead what has occurred is long gaps in communication followed by no explanation for failure to launch, time after time.
The impact on the growth of the business has been devastating!
Now, after almost two years of stringing investors along Hugo states, “…we are disappointed..”
Talk about a bloody understatement!
Looks like Alternate Harvest ETF we’re ‘disappointed’ too and they responded by dumping like, 50,000,000 shares. As well
POTX - Global ETF cleared 30,000,000 shares to exit their position completely. It looks like Spinnaker ETF has bailed out as well. That brings us to the SP of $0.02. A little heavy handed but I can’t say I blame them.
Though it may be reasonable to accept the first 6 months as outside of Auxly’s control, the causes for the rest of the delays fall firmly in the hands of Auxly and need to be answered by Management here.
Mike Lickver, is Auxly’s President and as such, he has oversight of all production and operations. It is his responsibility to make sure this upgrade happens.
Hugo Alves, is the CEO and it is his job to make sure Mike makes it happen.
It hasn’t happened and shareholders are still in the dark as to, WHY NOT !?
The packaging equipment was finally received in February of Q1-2022. We were then told installation and commissioning would take place in Q2. That didn’t happen so then it would be Q3. That didn’t happen so now here we are approaching the end of Q4 aaaannd..???
Hugo says, “… we are disappointed…”?
https://playback.conferenceconsole.com/recordings/rec50762535_20221114092344.mp3
NO SHYTE ?!! Really?
We’re talking C$10s of millions in missed Net Revenues !!!
That’s a HUGE disappointment !!
Pretty much the difference between life and death for this company and at least C$20mil missed was completely within Auxly’s realm of control.
Mike now says, commissioning of this equipment is currently underway and launch is imminent but he offers no meaningful explanation of why, as consideration to shareholders for the impact of the delays. It’s as though he doesn’t bear the magnitude of the responsibility upon him at aaalll, nor does he seem to sense a need to be accountable to shareholders for the shortfall created by the delays.
HERE WE ARE ANOTHER MONTH LATER AND STILL NO CONFIRMATION FOR SHAREHOLDERS !!! WTF??
Every month that passes represents millions in lost revenue!
As Auxly’s President, Mike has repeatedly misled shareholders expectations with respect to the Pre-Roll packaging upgrade without explanation for ongoing delays and I, for one, no longer find him the least bit reliable or credible.
This is so cocked up it begins to beg questions like;
- What is the explanation ?
- Is management purposely tanking the business ??
- Are the delays intentional ?
I’m now inclined to believe that management here are tanking the business on freakin’ purpose because, it simply isn’t plausible that anyone or anything could fuggup as consistently as Auxly with regard to ramping up their Pre-Roll production!
There is no possible excuse for these delays. The blue prints were in hand prior to the equipment arriving. We were told that the building modifications were completed well in advance. It should have just needed to be bolted in, wired up and commissioned.
Even a single monkey, installing METRIC hardware using SAE tools could have completed this task by now.
This equipment is material to the business in every sense and it is, at the very least, appropriate that there be an update for shareholders when the equipment finally comes on-line.
As for Hugo……?? He’s not saying much of anything, which says plenty. I guess he’s tired of having the foot in his mouth crammed down his throat by his little buddy.
In Q2, Hugo confidently called for over C$30mil NET REVs for Q3 and potentially C$40mil for Q4. This expectation has been completely blown out of the water by the extended failure to bring this equipment on-line.
Yet, even after repeated fuggups costing millions of dollars Hugo refuses to hold Mike or anyone else accountable. WTF?
Fugg it. I’m done quoting these guys.
At the very least an explanation to shareholders would be appropriate.
My investment here anticipated a hyper efficient, high speed automated packaging system.
Where is it?
Ottawa?? FFS!!
If only they had installed it at Sunens / Leamington. Then at least selling the Ottawa location to stay afloat might be an option.
Does this equipment actually, really exist???
Come ON Auxly!!!
Give us shareholders a gift to celebrate the holidays with aaannd….
Announce when it’s commissioned!
Show us a picture!
PROVE IT !!
cheers