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I do a lot of SEDAR and SEC doc reviews...but that is the pain...opening and reviewing each one. Easier to snag a number off of what was supposed to be a reputable website. That's the one thing I liked about the OTC...the otcmarkets page. All pertinent information in one place.
Thanks for the quick follow up. That puts it closer to your numbers.
Just reported the numbers reported on Fintel:
https://fintel.io/n/us/lexx
The facts kinda went out the window today when this stock traded 9.5 times its entire outstanding share count...and 15x its float. Yet somehow, at the end of the day, only returned an 0.87 cent gain. It's at this point you start looking for answers because the red flag that was raised today could have been seen from space.
Shares Outstanding: 5,104,332 shares
Insider Shares: 1,898,432 shares
Insider Ownership: 37.19%
Thanks...and your second comment made me laugh out loud.
In my opinion cannabis companies only "brand" because it is the legal loophole around advertising. They know there are all sort of restrictions surrounding advertising...and this is even present in Canada where it is federally legal...so they push a "branding" because it is the next best, and more importantly, legal method. Like lazur said, branding is challenging because it is seed to sale in each state. However, as we are starting to see the way around this loophole is to license the brand in other states, where you dont have a presence but want to get the name out. It just shows you that, there are restrictions surrounding things, but there are also creative solutions. What the industry...and especially vertically integrated businesses...need to watch out for is with money comes lawsuits. Look at the recent news with Chicago's Mars Wrigley suing a California based CBD company for trademark infringement over ZkittleZ. This same thing was an issue with "Girl Scout Cookies"...now only called Cookies and I am sure will soon be an issue with Runtz, Starburst, Lifesavers, etc. The annoying thing is the arguments Wrigleys (and probably all future lawsuits) used is " to protect children from mistakenly ingesting illegal products".
I dont know...Fintel doesnt show a significant amount of short volume on the stock:
Latest Market Date: 2021-05-05
Short Volume: 8,264
Market Volume: 32,500
Short Volume Ratio: 25%
https://fintel.io/ss/us/lexx
I think one it climbed warrants were claimed and/or the company diluted. I guess if it is the second one, we will see an SEC posting in the next few days.
Daily LEXXW volume is up almost 8x their 65-day average trading volume.
So far that is twice now that the way to play this thing is to buy around $5 and sell around $8.
Doesnt make sense to me...and it made the Nasdaq Trade Halt listing for 'Volatility Trading Pause', three times:
05/06/2021
Halted: 09:35:36
Resumed: 09:40:36
05/06/2021
Halted: 09:46:34
Resumed: 09:51:34
Date: 05/06/2021
Halted: 13:16:29
Resumed: 13:21:29
Go LEXX! But what I dont like...it is only up $2.25 even though it is currently seeing over 200 times it's 65-day average trading volume.
I was answering your catalyst questions. I was not talking about revenue. I was just saying that the US investor is not really looking at OWPC because...most dont know the company exists..and most investing in the cannabis space are not looking at Colombian based companies. They are focused on Canada and the US...because that is where the current industry excitement is.
Psychedelics are also Schedule 1. They are Canadian and must not operate in the US space.
Let's face it, Colombia cannabis is probably (many, many) years down the road. Most investors are focused on Canada, the US and/or Europe. For OWPC their potential catalysts is the ability to grow on the equator, where the environmental conditions are ideal and labor is super cheap. The company will tell you that their catalysts is the ability to sell CBD globally, the ability to sell cuttings and that they are researching cannabis' potential to aid in infrastructure and the automobile industry.
Confirming Hardcorehodler's post regarding Haupt stepping away....not intended to resurrect the issue. Here is an interview, posted today, where Haupt says it himself (exactly as HCH posted) within the first few minutes of the interview:
https://www.cannainsider.com/josh-haupt-plant-love/
When Tilray hit $300/share they only had 35M outstanding shares...not sure of the float at the time...but the overall industry sentiment was extremely bullish. That was back when Canada legalized and everyone assumed the rest of the world (especially the US) would fall like dominos.
Steve, all numbers pro-forma. Up until Dye's two recent podcasts the reported pro-forma revenues (for 2020) were $95M. I resort to that value because they include the 'known' acquisitions.
From the March 3rd PR:
"Schwazze Completes Acquisition of Five Remaining Star Buds Dispensaries in Colorado
Colorado Cannabis Leader’s Retail Footprint Now Expands to 17 Locations Across the Denver Metro and Southern Region of the State
Pro Forma Revenue for Schwazze and its Two Acquisitions (Mesa Organics and Star Buds) in 2020 is Estimated at $95 Million"
Steven, So felt wrong for being rude earlier, I appreciate your viewpoint because it helps keep me grounded...as opposed to overly bullish...even though it is very easy to be when you have been invested in this company for years and finally are seeing the light at the end of the tunnel. Promises finally become proof...proof through revenue. Anyway, I decided that I would make it up to you by running some numbers (and talk in averages). I went out to the Department of Colorado's website and located the number of recreational (only) retailers (592) and then found the average recreational retail sales over the last 14 months ($145,437,971). This breaks down to an average monthly sales, per retailer, of $245,520. Then I decided to run similar numbers based on the estimates provided in today's report. What made it not overly complicated was they closed the final 5 Starbuds on March 3...essentially a full month of information for the new 5 locations:
$19,300,000 / 41 (12*3+5) = $470,732
$26,800,000 / 51 (17*3) = $525,490
Obviously these are averages, but SHWZ is pulling over $525,000 per location...or about $17,500 per location per day (if you take the $525K and less out the $17.5K per day you get close enough to the $470K reported above). This is insane! They are pulling approximately double the Colorado retail average. If nothing changes from here on out...and they can maintain...we are taking an annual revenue of $107.2M. This is when they were giving guidance between $95M-$105M (not the $115M-$120M in the recent interview). Here is the breakdown:
$95M Annual Estimate -- $465,686/month
$105M Annual Estimate -- $514,705/month
Average Annual Estimate -- $490,196/month
Joe Gnomes Breakdown -- $491,950/month -- $100.4M annually
That being said, I feel this information was released early in an attempt to get the SP up so they can potentially offer/close another acquisition between now and when they (officially) report. I also fully agree that law changes will not be coming. I think when SAFE passed the House, and Schumer was quick to muddy the water with his concept of federal legalization, this was just a stall tactic to get people to believe something better is to come...and so SAFE doesnt need to be voted on in the Senate.
Quite a revenue miss?...all because an analyst who interviewed Dye projected a slightly higher value? Like his revenue guesstimate should be treated like gospel? I look at it and say, "wow he is really close and seems to be in touch with what is going on"...but by no means am I going to hold Dye accountable to missing Joe Gnomes estimates. I had it at 12M-15M Q1 and double that for Q2...without acquisition news. Why not see it for what it is...a 503% revenue increase when comparing the same period from 2019? It is one thing to be skeptical...I respect that...it's another to be cynical.
Hoop, I dont have level 2 but I always watch VERT and OTCX. They seem to be an early tell on where things are going. For the last few days VERT has been the most aggressive. I was asking 435 shares Tues through most of Wed (excited late in the day yesterday) and watched VERT steal shares at my price, or pop up and buy 1c higher. Now I haven't been watching the minute by minute, but from what I have seen today I can second your statement with him (significantly) playing both sides of the action.
Lazur, I couldnt either so I started looking at the other US stocks. For example, the ETF MSOS climbed 0.25 from 3:30-4 and Trulieve climbed 0.57 during the same time.
2021-04-26 10:00:00 - Lexaria Bioscience Corp (NASDQ:LEXX) (Nasdaq:LEXXW) (CSE:LXX),, a global innovator in drug delivery platforms, has announced it has issued stock options to consultants, employees, directors and officers. Lexaria has issued 43,500 stock options at an exercise price of US$5.31; and 26,000 stock options to an executive officer who also holds over 10% of the company’s issued share capital for the purchase of up to 26,000 shares at an exercise price of US$5.83. The options are exercisable for a period of five years expiring on April 26, 2026, with some issuances being subject to certain vesting provisions. The option shares will be subject to a four month hold period as prescribed by Canadian Securities Exchange policies.
https://www.proactiveinvestors.com/companies/amp/news/947643
Future, I would agree...and I still believe Haupt is still in the picture. All of Schwazze's "leaders" are Chiefs and/or VPs. This guy is a Director. If this guys is as qualified as his bio why isnt he the Chief of Cultivation? I mean Josh was before his title changed to Cultivation Consultant. Are they leaving this title open for the owner/CEO of the cultivation business they are acquiring...or do they already have position filled, just waiting on some paperwork...or both?
https://www.marketwatch.com/story/theres-no-immediate-path-forward-in-senate-for-cannabis-banking-bill-analyst-says-11618933075
“The problem is that Senate Banking Chair Sherrod Brown does not appear interested in advancing the House version of SAFE,” the analyst added.
“He wants social justice provisions, which we believe put at risk the GOP votes needed to overcome a filibuster. It is why we believe Senate Democratic leaders are concentrating on legalization ahead of banking access. It appears the obstacles to both bills are similar.”
Should have put quotes around that blurb. That was snipped from an article and not my own thoughts. I have always thought the SAFE Banking Act always had a better shot than the MORE Act to get approved first. Mostly because politicians like to baby step...or bread crumb...everything but also because, at its surface, this appears more as a banking bill. The thing is, and my own thoughts here (hopefully I am wrong), if passed it will take the banking industry a year or longer...because the banking industry doesnt do anything fast...to set the rules/regulations surrounding how to loan to the industry. During that time I would assume most banks probably wont loan to the industry out of fear they misinterpret the law and risk their FICA status. Also, if approved, the govt might not move as fast, or at all, on federal legalization because they might use the bread crumb excuse and give the banking industry time to get involved.
House passed SAFE Banking Act:
The U.S. House of Representatives has again debated and passed legislation to expand cannabis industry access to banking by a 321 to 101 vote. While the SAFE Banking Act of 2021 was expected to sail through the House on Monday, it remains far from certain that the Senate will follow suit.
We all wonder about Josh Haupt. He is a hustler. A ganjapreneur. I don't see him retiring early...not that he couldn't. Just some thoughts I kick around in my head, until the situation is public knowledge. I ask myself what method of defoliation has Josh perfected over his decades of growing? What method does Superfarm use? Schwazze owns the "schwazz" IP. Not that he couldn't license his own tech from Schwazze...Schwazze kinda has him by the (cultivation) balls. Because I don't see him settling down anytime soon...but really just getting started bringing his abilities to 'the world'...I see the next acquisitions being the businesses he is affiliated with. I can even see Schwazze acquiring the CBD business that he and his wife own. However, I haven't really weighed in on the subject because I also have reservations. The main one being that Haupt has a limited LinkedIn presence...and the last time he was on there he liked the comment where Alex Gutierrez vented, in what I interpreted as a direct shot at Justin Dye...and the failed Medpharm acquisition. Was this because Josh feels the same way? I really hope the mention of "Schwazz IP" was not really made as a (reinforcment) bread crumb to shareholders. Like, we might not have the man...but we own the rights to his techniques. In an additional note, another takeaway I had from the recent interview, it looks like they plan to sell off the Big Tomato Garden Center because it no longer fits in the picture.
SAFE BANKING ACT NEWS --
BREAKING: The #SAFEBanking Act will come up for a vote under suspension next week, @RepPerlmutter's office tells me.
— Natalie Fertig (@natsfert) April 16, 2021
Do you think they eventually sell off Big Tomato...possibly to Grow Generation?
DD, If all my investments turned out like WalletInvestor projected they would, back in 2018, I would be able to join you on the golf course....as your caddie, of course.
LOL! That's why we are slow to taking off...lack of emojis.
Interesting algorithm. All of the stock jumps happen annually between today and tomorrow.
I am not sure what new acquisition news that they may announce...but before 4Q20 earnings they previously projected a $95M revenue for 2021. Knowing that all Starbuds revenue wont be felt until Q2, I anticipate Q1 revenue around 12M and a Q2 revenue to at least double that.
Thanks. I went looking for industry news but couldn't seem to find anything that matched the timeframe.
Any idea what happened late in the day to spike this...and several other stocks? Was it just because of a strong US jobs report?
According to page ii in reference to page F-4 the OS dropped 423,732 from December 2020 and March 2021:
(ii)
Common Stock as of the close of business on March 23, 2021 was 42,169,041.
(F-4)
December 31, 2020 42,601,773
Just because it is something that popped into my head...and really more for an apples-to-apples (Colorado) comparison:
Columbia Care - Colorado Assets:
The Green Solutions - includes 23 dispensaries and six cultivation and manufacturing facilities, cost CCHWF $140M, expected to generate approximately $88.5 million in revenue and $18.5 million in adjusted EBITDA for FY2020.
Schwazze - Colorado Assets:
17 Dispensaries; Starbuds, Mesa Organics and Purplebees, cost SHWZ $123.2M, expected to generate approximately $105-$125 million in revenue and approximately $28-$36 million in adjusted EBITDA for FY2021.
I guess I missed some posts. I cant remember you being chastised. Sorry you feel that way. I thought we all kind of figured a bad 4Q because Starbuds was on the books for such a limited amount of time. In addition, potentially lower consulting revenue...due to COVID...and that all positive amounts would be from Mesa Organics and Purplebees. I was under the impression that we were all hoping for the best while at the same time agreeing that the real numbers would be reported in Q2 earnings...when a full quarter of all Starbuds revenues would be realized.
Steve, it only widened on the downside based on the one recent podcast/interview. Up until that point, and what has been articulated in past PRs, was an estimated revenue of 95M.
Did I hear that correctly, they rebranded their Mesa Organics to Starbuds.