Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
For over a year I tried to warn people that Peter had no idea what he was doing.
They can’t file for BK because of their Dispensaries in Nevada. They need to sell those and will never get close to 1/10th of the purchase price.
Get out now. A nice capitol loss to offset gains at the end of the year.
Green Growth Brands Terminates Nearly Entire Staff
March 22, 2020
The Deep Dive
Last Thursday, cannabis and CBD retailer Green Growth Brands (CSE: GGB) issued a news release, which focused on the news that CEO Peter Horvath would be stepping down from his role with the company, both as a director and as an executive. Near the end of the release, the company also identified that its CBD business unit will be closing down temporarily as a result of the ongoing coronavirus pandemic.
Green Growth Brands Logo
It appears that the official statements made by the company however didn’t jive with what was told to that of employees. Based on company files obtained by that of The Deep Dive from numerous former employees, this statement related to the CBD operation is “slightly” misleading.
In regards to Green Growth’s CBD operation, this is officially what the company has released to shareholders:
In response to the ongoing COVID-19 pandemic and in accordance with the recommendations of health professionals and other mall-based retailers, the Company has elected to temporarily close all of its mall-based cannabidiol (“CBD”) kiosk shops in an effort order to protect its employees and customers from unnecessary exposure to the COVID-19 virus. In connection with this action, the Company will also suspend sales under its CBD e-commerce platform.
To be fair, this appears to be what occurred, if only initially. Tuesday morning, as per sources, Green Growth Brands employees received an email notifying them that all stores would be closed effective immediately as a result of the ongoing COVID-19 global pandemic. If any shops were currently open, they were to close immediately. The measure was expected to last until at least Sunday, March 29.
That email to employees was followed up two days later however, the same day that the company indicated to investors that they had undergone a temporary closure of both in-store and online e-commerce operations as a result of the pandemic. The closure of the latter is curious, given that the majority of online retailers across North America have remained open for sales despite physical location closures.
The follow up letter detailed a much different scenario for employees. Within, it was detailed that effective immediately, effectively all employees from the firms CBD and THC business units would be terminated as a result of the firms failure to sell the unit or find additional funding in the capital markets.
“Today, we are eliminating all but a dozen support roles for the public company, this includes the entire CBD team, THC team, and many corporate roles including my role as CEO role and board member.”
With the business unit effectively eliminated, the public company would “continue efforts to restructure debt, address payables, and raise additional funds to build out the Nevada, Florida and the Massachusetts footprints.”
The company then continues to say that effectively immediately they would be indefinitely suspending the CBD business unit. Regarding the announced transaction with BRN Group, Green Growth commented that the transaction is “unlikely to close in the near term, perhaps not until the world begins to resume normalcy.”
If this weren’t enough of a kick in the pants to employees, the letter is closed out with Green Growth Brands stating, “Unfortunately, we’re not in a position to fund payroll, your termination date is official as of March 19, 2020.” The company then goes on to provide unemployment application details, and indicates that employees have 90 days to rollover their 401k funds to another account, and that their health benefits will be expiring as of March 31, 2020.
The announcement of the closure of the firms CBD kiosk wasn’t the first bad news for employees however, as the Green Market Report outlined on Friday, which is inline with what The Deep Dive’s own sources have indicated. Previously, employees had seen their last check arrive several days late, which was blamed on the payroll company, while also undergoing less than stellar working conditions.
The full text of the letter sent to Green Growth Brands employees by the company can be found below. Specific information related to obtaining unemployment insurance and the transfer of 401K accounts has bee removed for privacy reasons.
Green Growth Brands last traded at $0.08 on the CSE.
A Message from Peter Horvath, CEO of Green Growth Brands
I guess they should have increased their offer to Aphria.
No sale, no cash infusion. Not anytime soon. The CEO tells in his memo that he hopes his employees will some day look fondly on the memories of having worked for GGB and in the same breath says he can't pay them. He thanks them for their exemplary hard work but he can't pay for that hard work. WTF, really WTF. Employees must feel even more like sh.t to know that while they won't be getting their cheques,the a.hole and his team made sure they got their million plus salary and bonus. Let's take that away from him and wish him fondle memories of GGB
Yeah, right. Nice conspiracy fantasy.
Shut down Instagram, will likely shut down Facebook soon too as they are being obliterated.
Might get a dead cat bounce based on some pump group coming in, but that's about it.
Company is essentially worthless at this point.
They haven't secured that $10,000,000 yet and likely won't based on them now having shut down one of their dispensaries in Nevada. The PR clearly states they didn't close on the $30M private placement, $10M of which Schottenstein committed to based on securing the other $20M.
Furthermore, based on current share price, any additional capital raise would dilute the company to the tune of 100,000,000s of shares. Reverse split will then be inevitable.
"The Company has received a commitment from All Js Greenspace to subscribe for US$10 million, in the aggregate, of the proposed US$30 million Private Placement. It is anticipated that the Gross Proceeds of the Private Placement will be available to the Company upon the achievement of certain financial and operating milestones. The subscription price for Common Shares under the Private Placement will be the greater of (i) a 10% discount to the then market price of the Common Shares on the CSE on the trading day immediately prior to the date of issuance and (ii) a 10% discount to the volume weighted average trading price of Common Shares on the CSE for the ten trading days immediately prior to the date of issuance (in each case, the "Common Share Subscription Price"). The subscription price per PV Share will be equal to the Common Share Subscription Price multiplied by 500 (five hundred)."
Green Growth Brands terminates practically entire work force. Can't make payroll.
How does the recent 10 million influx make sense if it is all a total scam?
LMAO, you do realize the company was a scheme hatched by Barry Honig, who is good buddies with Serruya and Schottenstein? They realized the cannabis craze was in full swing and created the company right at the peak of the market. This was all planned.
The pumps with Jim Cramer were well timed to unload cheap paper. The share buyback was merely a ruse to increase trading volume, just like the Aphria takeover bid and the Moxie deal. All smoke and mirrors. Sorry, not sorry.
Over at "Cannabis Investment Club"
MJ stocks under a buck poisted for a bagger ( double ).
Buy Cresco and GGBX.
I finished this list over on Cannabis Investment ...
They knew they would need to raise capital to complete the expansion and let the revenue catch up. The access to reasonable capital evaporated. I do fault them for the share buyback. That was just inexplicable. Share buybacks are for companies with excess cash, not one that is in an early growth phase and needs capital.
Aphria stupid deal and penalties thereof, moxie deal failure and penalties thereof,idiot decision of shares buy back, incinerating cash left right and center without assessing the value of the spending,outrageous self payments. That's how they ran out of money. It's not that complicated. NOT ANTICIPATING THE COMPANY IS GOING RUN OUT OF MONEY, that one is beyond me. How can you not see you're running out of cash weeks or months in advance. Unless you deliberately want to do that.
The retail model didn’t have a chance to fully prove itself yet. The early results were encouraging and they would have allowed it to grow further if they had access to cheaper capital. Which was impaired by incessant attack on the stock. So they decided they had to sell 80% of it. That was the only way to finance it. It’s not that complicated.
Of course it’s short sellers. Who do you think attacked the entire sector and GGB in particular? It wasn’t Ukraine.
Maybe he will be going with the Kiosks! Hope that sale goes through, maybe the +Source will have a chance of success. If I can get to Vegas, I wonder if my 10,000 shares will get me a 10% discount so I can get some money back!
He's gone. He got his bonus and fat salary and God knows what else in severance pay. And because of his mistakes we, us, got nothing. Stop making excuses for this team deplorable managing skills. Supposedly creme de la creme managers, my ass.
The virus has nothing to do with it. The company was in deep trouble far before that. Short selling did happen but it didn't drive the company to the ground. Management did. The company would have survived if Horvath didn't outrageously burn an obscene amount of cash on a model that didn't even prove itself. The man was incinerating cash so stupidly on foolish acquisations and non sense deals. Gross, gross, gross mismanagement.
Sooooo, yeah, it's not short sellers? Sure about that, because that has been your go to for some time now.
Reality is the business model, regardless of the virus, was an absolute loser. This was NEVER going to succeed, period, as it was never meant to be anything more than a scheme to enrich insiders.
When the plan to spend money through rapid expansion was started the market was completely different. The attack on all of these stocks started after that and it has caused a capital crunch. Companies whose stocks were decimated now lack access to reasonably priced capital. And obviously the virus crisis has affected all retailers, both commercially and in investor perception.
What is funny is that every single cannabis chart looks the same, regardless of whether the company is sound or not. All of the stocks move together like Stirlings. So, regardless what you are touting, you are wrong.
Fast forward.
Until now. Are you up to speed?
CANNABIS COMPANIES TRADING UNDER A BUCK
( BAGGER, 2 BAGGER AND TRIPLE BAGGER OPPORTUNITIES )
HEXO
CVSI
KUSHCO
GREEN GROWTH
AURORA
HALO LABS
Ianthus
Khiron Life Sciences
Liberty Health Science
Medmen Enterprises **
Indiva
Choom Holdings
Namaste Technologies
Phivida Holdings Inc
Planet 13 Holdings **
Plus Products Inc **
Radient Technologies
Sunniva Inc
1933 Industries Inc **
Green Organic Dutchman **
TILT Holdings Inc **
WeedMD Inc **
** outperformer today 03/19/2020
What a comical post. $2, $1.50, $1...you nailed it!
Not good. CEO. Goodbye.
So much damaged done. It's almost over.That a-hole being fired or stepping down makes no difference at this point. Too much damaged done.
Good. Merited. Peter the Kunt. Enough said.
No it's not non sense. It's actually emphatically correct. Horvath ran our investment to the ground by making irresponsible decisions in burning cash so foolishly. All the while filling his pockets with an over the top extravagant salary and bonus. Not caring the least about the shareholders. Making excuses for his behaviour, that's the nonsense
So your contention is the company isn't bankrupt?
The only nonsense is the complete and utter failure of this management and self-enrichment of one of the highest paid CEOs in the industry.
Nonsense, as usual.
As I noted earlier, company is effectively bankrupt. Horvath's reckless spending, exorbitant salary, and failure to execute are to blame, nothing else!
Sorry, but the truth hurts.
Clearly you live a fantasy land.
If the concept of someone who ran your investment to the ground by making irresponsible decisions all the while filling his pockets shamelessly handsomely escapes you, I dont have much to say anymore.
What legality did I mention? I didn’t. I’m not sure where you live but in my area cops make $250k. Okay, so cut the CEO salary to $500k if that makes you feel better. Irrelevant.
Again hiding behind the legalities (and by the way $1million dollar for a start up company is NOT typical) vs earned deserved performance.
Nonsense. Most public companies even with zero revenue pay such compensation, such as baby biotechs with no approved drugs.
You should avoid investing in every company that has ongoing contract disputes. You’ll have to buy gold instead because they all have them. Cost of doing business.
Management always gets paid. It’s just reality. If you want to criticize compensation in general I agree. But that accomplishes nothing.
This is a POS company with a POS leadership team who ran this POS stock to the ground. Whoever defends this management team is either on the take or needs to see a psychiatrist. And if you need to come back to that statement , read this: January 14 2019 share is $6.40. March 14 2020 12 cents. That alone should be the end of any discussions
OMG, you can't be serious. A $1,000,000 salary would be typical if the company was CF and EBITDA +, which of course they are not even close!
"A minor lawsuit" which, if taken collectively, accounts for nearly $2,000,000 of their quarterly revenue, or 10%, which effectively wipes out what small margins they already have reported.
But please, keep lectuing everyone about the virtues of overpaying management, the "value" of start-ups, and how a business model based on brick and mortar retail sales that will essentially be wiped out based on recent macro events is still a winner.
Please let me know what you take every day to have such a fairy tale outlook.
Salary may be legal. Fine, it's not illegal but it's highly immoral. Most investors on this board and everywhere else lost serious money on their investment because of the gross management of this executive team. Spending cash so irresponsibly that in the end they are forced to sell what they were trying to build in the first place. They sold the one thing they asked us to believe in from the beginning. The one thing why we were invested in to begin with. They do not deserve that salary and bonus. Not one bit.
If they reduced their salaries and instead took options that would still result in complaints. A $1m salary with no options for a company that did $21m last quarter is fairly typical.
Nope. I’ve watched people complain about management still being paid when their stock is down for roughly 30 years. I’ve also watched people equate a manipulated share price with fundamental red herring issues. A minor lawsuit due to a contract dispute and management continuing to be paid fit that description.
He was recruited by the money folks behind the company. They are still there. It is very conceivable that a spin off was always in the cards.
They still have a 20% stake in the mall business, so they will be able to profit from its success (if?). I have to believe that the all J's either still have confidence or his contract has too rich of a termination charge to dump him. Actually if we get to see the company pull this off and move ahead he probably is worth the high salary!
Not for such a start-up. The C-suite generally pay themselves a reasonable base salary to cover living expenses however, the risk/reward applies where they are rewarded against the incremental success of the business they are driving and scaling. The CEO is a spiv and has certainly proved himself to be one. Peter needs to do one. Be gone you Wrong’un.
One excuse after the other and the other.....
Followers
|
41
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
2100
|
Created
|
12/20/18
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |