Simply Better Brands Corp V.SBBC

here is one reason it is falling

[mingzhu]

It sold major product Purecana for total $13m in Q2, but marketing cost for it alone was 8m. That is why it had net loss of $6m in Q2. SBBC is basically a marketing co without prodcing own prodcts. It has to reduce marketing cost to be profitable.

[mingzhu]

another reason is that revenue guidance for second half is less than first one. it is likely it has not enough money for marketing ads.

[Dali81]

They might be underestimating that on purpose...

[doggy123]

The revenues for the 3rd and the fourth Quarter will probably be $60 and 70 million dollars ...other than that it don't make sense.......

[doggy123]

Maybe the products they produce by the producer will be enough for the second half............instead of $6m loss it will translate 6m profit............it just don't make sense the second half will be less than the first half..........

[Dali81]

Even if their revenues will increase each quarter by just 10% over Q1 (which is conservative guess) they would make almost 40mil... but unless they they wont start to generate cash flow, they are in trouble... their current ratio is 0.45 and they have so much debt to pay... they are promoting their adjusted ebitda is going to be positive by the end of the year...but thats bullshit earnings....

[Dali81]

Should have been 10% over Q2

[doggy123]

If she can't found a way to reduce marketing $$ well she don't deserve to be a ceo........and she knows....expect some kind of news release about it in the future...if not she should be fired