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MJUS up to 51,582 shares of SHWZ, but still minimal (only 1.37%) of its holdings.
I was wondering what was bringing them up today. I looked at their earnings and I too thought it was unimpressive. I wasnt quite sure how all those negative number reported could somehow result in a positive net income. The only positive that I did see was that they managed to lower their G&A expense...but it is still almost 3x their gross profit.
Thanks DrugDoctor, StevenRisk and Future2016 for your input!
Thanks for the explanation. I personally didnt understand the filing. I read as much as possible but it was still as clear as mud.
DD, I am trying to understand what this means...and believe this as dilution of another 120M shares through common, preferred and warrants (maybe I am misunderstanding the filing which is why I didnt want to be too quick to comment). I was also pointing out that the current fully diluted share count is between 125M-133M, and an additional 120M puts the company right at the OTC 250M share max. I get that they can increase the OS, I took part in the last vote, and I get that cannabis is a capital intensive business. I would like to think that the ends would eventually justify the means...just stumped why the timing is now. It also kinda upsets me that I added more share Friday when it appears better buying opportunities could be in the near term as the revenue numbers catch up to the new fully diluted share count.
S-3 posted on the SEC page on 1/7. Can someone put this in layman's terms? When talking fully diluted share count, does this max out the OTC 250M authorized shares?
https://www.sec.gov/Archives/edgar/data/1622879/000168316822000178/medman_s3.htm
Quick Summary of the company:
So I should have stated that I am not an Oklahoma resident and therefore dont know the true state of the industry in the state. I was just regurgitating information that I heard on 2 podcasts, from a while ago, and tried to locate them to post...but failed to find them. In all honesty, I didnt realize that the state was not recreational already. With the oversupply, something has to give, and from what I was reading tonight it might be the state flips recreational soon. There was talk about it being put on an upcoming ballot. Going recreational could allievate some of oversupply issue, because currently only 10% of the residents of Oklahoma have medical card. Even though I think it is way to early to make a move on Oklahoma, quite frankly I am not worried if mgmt decides to because it is obvious that the company is heading in the right direction under Dye...and he isnt spending an absurd amount, like the other MSOs, when it comes to acquisitions. In Plain Sight's Jim Parco comment about growing his business by 80%, has me sold. Anyway here is some other Oklahoma information driving my reason for hesitation:
Oklahoma decided to let the free market run unencumbered. As a result, the state is now home to nearly 12,600 marijuana business licenses, including more than 8,600 growers and upwards of 2,300 dispensaries. That’s more than double Colorado’s combined recreational and medical stores – despite the fact that Oklahoma has some 1.8 million fewer people.
I agree. I dont see it happening in at least the first 9 months of 2022, if at all next year. The state is going through similar struggles as Oregon. There is no need to be there right now...if at all. It is not cost effective. It is not good stewards of capital. It's not good for shareholder value. And the margins suck. Buying in now is buying in too early.
Moving into OK seems logical, as a regional play. The thing with OK is that they have a serious oversupply issue. Vape cartridges that cost $25-$45 in other states cost between $7-$10 in OK. That state is about to see a reckoning...and as much as I am against the move happening in 2022, I also think it could present a cheap consolidation opportunity.
Interview with Anthony Coniglio, the President and Chief Investment Officer
https://seekingalpha.com/article/4474861-newlake-capital-partners-anthony-coniglio-investing-across-cannabis-value-chain-vide
NLCP gets a mention toward the last third of the podcast:
https://seekingalpha.com/article/4476410-cannabis-stocks-focus-on-fundamentals
Interesting industry news. Shocked this slipped through without really any notice.
Pfizer signed an agreement with the clinical-stage company Arena Pharmaceuticals for a total equity value of around $6.7 billion.
Arena Pharmaceuticals is a biotech company with one pipeline dedicated to cannabinoid-type therapeutics. The core of its cannabis operation consists of Olorinab (APD371), an investigational, oral, full agonist of the cannabinoid type 2 receptor (CB2), which aims to treat patients with diseases affecting the stomach and intestine
Great find! Thanks for posting! 56 views already and only up 2 hours.
I am not sure I understand. So we did a sale leaseback on 4 retail properties. Was this part of the recent equity raise? Was that where the additional $2M of the $95M came from...since $93M was funded?
IPS, thank you for the detailed write up. I appreciate the time you and your wife took to better understand the company...and management...as well as the effort you put forth cataloging it all for the iHub family.
@Todd Harrison posted on twitter to 'name your top stock pick for 2022'. Had to drop a SHWZ in there.
HAHA, that is true...but if some people are gonna keep getting cheaps...I want more cheaps too. I mean I am not asking for a lot. Include me. Sucks to be passed over.
Got faked out...again. I hate the days where I set an order and then when I check back hours later I can see that other orders were picked up below mine...making me assume that my order went through...but then when I check my trading app, I am still on the outside looking in. Frustrating.
Interview with Jarrett Annenberg of Newlake Capital Partners:
https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy9jYmRmYmY4L3BvZGNhc3QvcnNz/episode/Y2RlNjUwNDEtYTZkZC00MjA1LTkxZTQtY2JjYWNkNjFjODJh?ep=14
Thoughts/ideas\research are always welcome. Hopefully you continue to contribute.
Welcome to the board!
Thanks Hoop. I wanted to make sure because I didnt want to run into any issues with my trading app.
If we list on the NEO would the company retain the same OTC ticker or would they be forced to pick up a 5th digit, "F" (foreign)? I know with the other US companies they were domiciled in Canada and listed on the US OTC exchange, which initially caused the "F"....but any idea what happens in reverse? I am assuming nothing will change in regards to our OTC listing/ticker....but does anyone know for certain?
Seems like the industry is seeing a slight boost based off excitement surrounding the NDAA.
I think I read somewhere that they could possibly vote on it by the end of the week (not 100% positive).
Obviously Schumer is still primarily focused on social equity. Right now the biggest push for SAFE remaining as part of the NDAA is the argument that MSOs already have access to capital, so by not passing SAFE they are really preventing the smaller, equity, operators from having access to capital.
_____________________
Brady Cobb 4h
Update-SASC & HASC staff have been working resolve differences between House passed NDAA (with Safe) and Sen Committee version, House version the baseline. Draft to be released this week (sooner than later imho), then ping pong between chambers will start. Votes after, onward!!
Lazur, pulled from iAnthus' M&A on the Canadian Sedar page:
As of September 30, 2021, we held licenses to operate up to eight dispensaries and 14 cultivation and processing facilities in the western region, subject to regulatory approval. As of September 30, 2021, we had five dispensaries and five cultivation and processing facilities open and operational in this region. As of September 30, 2020, we held licenses to operate up to 16 dispensaries and eight cultivation and processing facilities in the western region.
As of September 30, 2020, we had 13 dispensaries and eight cultivation and processing facilities open and operational in this region. The decrease in the
number of dispensaries and cultivation facilities was a result of the redemption of our equity interest in Reynold Greenleaf & Associates, LLC (“RGA”) which occurred in the fourth quarter of 2020.
Exactly lazur. Getting in early before adult use...no later than April 2022. The state has about half the population of Colorado...HOWEVER, it borders Texas on two sides! Texas has a population of 29M and is so new to the medical game...and very obvious, adult use is illegal. A quick search shows two Greenleaf dispensaries just inside the border. One of which is a stones throw from El Paso... which has a population of almost 700K.
Well hot dang! Go figure! I take a day off and look what happens. Maybe I should this more often?
We got a very quick mention on the following podcast at the 1:08:35 mark, 1:19:13 and a better acknowledgement at 1:22:35:
https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vU0E5MjE1ODkxMTM3/episode/ZmUyN2I2ODYtNTJhYy0xMWVjLTgxMmMtMzdjMDI0OTYyNTM1?ep=14
Ditto. I keep bouncing between high and low 1.60s.
I posted about it for 2 reasons. (1) It was an old term sheet target under AW that fell through when Dye took over. And, (2) Colorado has seemed to be a hot topic recently when it comes to publicly listed cannabis companies consolidating the industry.
I by no means am advocating for SHWZ to pick them up. Only following the news because it was one of the 'top tier' Colorado cannabis companies that AW touted.
______
On June 1, 2020, High Country Supply, which owns several recreational cannabis dispensaries under the Colorado Harvest Company banner, terminated its $12.5 million sale to Schwazze. The company was projected to bring in $10 million in revenues per year.
Per STEM Holdings, CHC is expected to generate over $13 million in revenues in 2021, with a projected gross margin of $5M.
Colorado Harvest Company is 0 for 2:
DENVER, Nov. 29, 2021 (GLOBE NEWSWIRE) -- Denver-based Colorado Harvest Company (CHC) terminated the term sheet with Florida-based Stem Holdings. The term sheet, dated September 29, 2021, was for the purchase of all Colorado Harvest Company's retail, production, and delivery licenses located in both Denver and Aurora, Colorado. Stem approached Colorado Harvest Company after CHC obtained the first recreational delivery license in the state of Colorado earlier this year. The two parties agreed to work towards a closing in December of 2021. Delays by Stem Holdings pushed that closing date well into 2022. The offer to extend the contract was ultimately rejected and the term sheet voided.
Colorado Harvest Company CEO Tim Cullen says, “We were disappointed to have to walk away from Stem, but when one door closes another opens.”
Gotcha. This is my fun money account...so my 'cash account' is just a low bid on SHWZ. If it hits it hits...if it doesnt then I either add to it or I reroute it for other investments. Also thanks for the article you posted. I started to incorporate anti-cannabis podcasts into my rotation. Not because I am bearish...quite the opposite...really in order to counter my cannabis excitement and investing FOMO. When it comes to the anti-cannabis argument, DUID is a major concern...since there is no quick test, similar to a breathalyzer, to test impairment at that exact moment of incident. However they tend to overlook the fact that cannabis stays in the system for so long...so I assume their 'stats' are over-inflated. Another main talking point is how cannabis effects the brain. Sure people are aware that cannabis can be addictive or even lead to schizophrenia, but the anti-cannabis community is really pushing cannabinoid hyperemesis syndrome (CHS). And more specifically the lack of knowledge the medical community has with diagnosing and treating this 'disease'. Anyway, just thought I would share. Ultimately, it has given me a bearish outlook on the federal legality side...but it has strengthened my viewpoint on SHWZ as an SSO in an already well established/regulated state.
Wait...so you were serious when you said you were sitting that low? I just thought you were being sarcastic.
StevenRisk, I agree with what you are saying. These next few weeks could be a tough time for the industry, as a whole, depending on several events. Most of this industry is supported by individual, emotional, investors. Will the industry see a tax loss sell off? Maybe we are currently experiencing one. Will NDAA include SAFE or will it be stripped out? Will anything, political-wise, happen before the end of the year? If it goes the way I am thinking, the question is whether or not SHWZ will hold up or will it follow the tide. Personally, I am not buying right now because I expect SAFE to be removed from the NDAA...presenting a better (industry) buying opportunity. Does that mean I get SHWZ for lower than the current price? Maybe...but if it doesnt I am comfortable with my current position, and will probably try to catch the low somewhere else.
Nice! I went looking and I dont have the same advertisement. I just see middle box with dispensaries in the surrounding (westword) area...none of which are owned by SHWZ.
https://www.westword.com/marijuana/schwazze-agrees-to-buy-emerald-fields-smokin-gun-dispensaries-12813551
"Manitou Springs has a population of just over 5,000, but the town is less than fifteen minutes from Colorado Springs, where recreational marijuana sales are banned. According to the town's former mayor, over half of the tax revenue in Manitou Springs in 2019 came from recreational pot sales."
In Plain Sight, I think we all expected that...however, and I have probably been the least bullish...The High-Rise released a podcast the other day which gave me a little hope. They had Brady Cobb on, he is in-touch with Washington. He believes that it will be removed from the NDAA, but since the GOP is pressuring the issue, it will go to committee and will be negotiated there. He is still predicts that something will happen before the end of the year.
https://www.headset.io/podcasts/e30-all-about-the-states-reform-act-will-this-finally-be-the-end-federal-prohibition
What has been irritating me is that over the last 3 days, the Benzinga Cannabis Daily podcast has talked SHWZ twice and misrepresented them twice. The first time was when reporting Columbia Care earnings and suggesting the two are linked (two days ago)...thanks to Medicine Man. Then again today after announcing Schwazze's two dispensary acquisition (highlighting that there is a lot of talk that SHWZ could be acquired by Columbia Care).
Thanks Kool Kona and Etailer for sharing your Emerald Fields visit experiences.