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Thanks for sharing! Terry has always done a fantastic job articulating the technology and doing so in a patient, yet completely, relatable and down to earth way. That is why when Lexaria sold off their THC subsidiary, in preparation of uplisting, I was confident that they sold it to the right company.
I dont know the companies specific numbers but Colorado was on pace to do $2.2B in annual sales for 2020. This is approximately half a billion higher than their 2019 sales. Roughly a 21% increase in total state sales revenue from 2019 to 2020.
SQFT is was the angle played by the Canadian LPs, in late 2018, and you see where that got them. SHWZ is vertically integrated. They are growing. They are fiscally responsible. If they have a problem it is that they didnt have enough cultivation to feed COVID demand. Their intent is to build a stronghold in Colorado before considering other states/being an MSO. Initially, I was game for them being an MSO, because MSO meant major player...and this is what investors are considering the "right play". However the more I have thought about it, and continue to think about it, the more I favor their SSO strategy. Colorado is a developed state, if not the most advanced in terms of legislation. It is second in revenue generated, second to California...I know, larger states will be coming online (like Florida and NY) that will probably/eventually move them down the list. The benefit of focusing on Colorado before trying to branch out is that THEY KNOW Colorado. If they prove their business model in a well established state they will be in demand....because as I see it, as more states come online it will be exciting to investors, but for operators it will be challenging. Applying for a license, acquiring/establishing/building out a business is going to cost A LOT of money. Then you add in the fact that this is new territory to the state/govt and rules/regulations/laws, tax laws, will all be different and fluid...a businesses worst nightmare constantly changing rules/regulations. For example, early on the govt of California practically sunk the smaller players with their constantly changing product labeling requirements. I believe the sit and wait on the sidelines play is the right one. I believe it is the fiscally responsible and shareholder valued move. Where the Canadian LPs had a cultivation land grab race that ultimately flopped (still flopping with all their quarterly 'write downs'), I think a similar situation will play out in the states. I think there will be overpriced acquisitions...which isnt JDs style. I think eventually businesses that operate in the new states that open, that arent acquired, will eventually be hard up on cash/funding. They will have products and market share and be looking for a better established, bigger player, with proven success, to partner with and help them succeed.
Sorry for the length...these are my constantly evolving thoughts.
Thank you. Great find! Been looking EVERYWHERE for that information. I wonder how the stock will respond on Monday. I would assume that people might want in. IPOs and Robinhood seem to be HUGE right now. Plus anyone currently in has been aware of this coming for a LONG time. So I feel like the stock wont take a dump.
My trading app posted a notification saying that LXRP's earnings date is expected on 1/13. Does anyone know if that is accurate?
Your statement sums it up completely:
"Despite being wildly bullish I feel sick about buying more too which probably means there’s no better time."
Playing with fire...
I assume taking your chances that the uplist was going to be delayed?
I am torn on my decision. I kick a thousand thoughts through my head justifying it...then since a bought a little earlier this week I also want to hold out for a better price. This stock drives me crazy. You see the 100K bids out there...and think FOMO...then they disappear. You hit the ask and it doesn't go...then you set a low all-day bid and it does. I cant wrap my head around it.
Been debating all day picking up a little more. Right now my avg is over the 0.25 that they said they were planning the 30:1 around...so me buying will cost avg down...but might make the post-RS a better deal. I still feel like this will RS higher up than 0.25. I think if anything we learned their endgame might be an uplist at $7.50. I keep watching the Nasdaq IPO website and have not seen LEXX listed; with a definitive date or upcoming.
Look at the premarket activity. Bye bye shorts. I was out in my trading app and noticed a 1.86 bid pop up...then disappear to the 1.77 currently out there. Market open could test the 1.85/1.88 rather quickly. Placed a small 'just incase' bid in the event it wants to retest support after hitting that level of resistance.
That would be nice, and I think it will come, but not this year. I hope I am wrong, but I think decriminalization along with something banking/280E tax related to happen this year. Man wouldnt it be nice if, by the end of the 1st quarter, the MORE Act passes and SHWZ makes the 7 Starbuds announcement along with uplist news. Think of the upcoming catalysts. Starbuds is exciting by itself...but news that SHWZ being added to an ETF...and/or...uplisting to a major exchange. They say cannabis is still in the first inning...it definitely is for SHWZ. Good times ahead for sure!
Nor the cojones to call a spade a spade and inform the public that they are US major exchange listed but DO NOT operate in the US marketplace. You want to talk about pumping dreams. I get that they dont want to promote an OTC stock, but they should play the gray area and push the ETF, MSOS.
Yeah I get it...its a CYA. Just upset at a few things in there. Most especially the 30:1, to get to $7.50. Not that shareholders didnt vote/approve the 30:1...we were also told it was to get the price to $5...and that they were expecting it get it closer to the 2:1 range. I would have been fine with anything up to a 25:1, to get to 7.50, because that is an RS right on my avg. Also, they will maintain their 220M authorized shares. They have minimized dilution thus far...so I am hoping they continue to minimize it in the future...but if we drop down to 3.5M share, that is A LOT of room for future dilution.
The s1 that was posted made the end of the world seem like a better option...with its 100 page risk assessment write up.
Officials said they want all counts done by 1pm. If it takes that long to conclude then we could see a late day push too.
It is interesting to follow that is for sure. Definitely closer than I thought. Everything I read/listened to expected only 1 seat flipping.
Thanks lazur, and all for weighing in. I could see January buyback...but I didnt think that usually happened until the middle of the month. Per usual, I tend to overanalyze situations.
Thanks. Interesting...because that is a Sunday, but supposedly it was the date specified in the Constitution (and not a day of the week). I found a 2021 Congressional Calendar and both the House and Senate were supposedly in session on the 3rd...and the Senate is not back in session until the 6th...so that rules out the 5th. If Jodi's statement is correct then it looks like this will end up being reintroduced...and probably after both the inauguration and Georgia decision.
I was hoping the same until I looked at the others, US and Canadian, and they all made similar/more drastic moves.
The House vote was postponed for an anticipated DEM majority House. With Georgia in contention, I thought the same. The vote would occur after...but there is a lot of chatter on other forums that it is tomorrow. The buying this morning could possibly suggest that however I was unable to find a definitive answer on when the vote will take place.
Can I play devils advocate...and bounce a thought off you guys? So, I know that there is company news coming. I also think, yet I am not 100% sure, that tomorrow could be the MORE Act vote in the Senate (if someone knows definitively, let me know). Regarding the industry spike that occurred this morning...most would assume that people are just trying to get in ahead of industry news, per usual, to sell the news. Yes there is industry excitement, but if you dont think that the Senate will vote in favor of the MORE Act, thoughts on it being short positions figuring a negative vote will cause an industry wide sell off? Something with the movement of the industry this morning just gave me a bad feeling, It was too synchronous. Did anyone else get the same feeling? Still confidently bullish in SHWZ, just not necessarily this week.
I wonder if SHWZ is considering Terrapin Care Station. They have 6 dispensaries in Colorado (their headquarters) as well as operations in Pennsylvania and Michigan. I like their company story. They believe in corporate responsibility and competitive pricing. A local paper published a medicinal cannabis article recently, on how PA is overpriced compared to other states, and spoke favorably of them doing their best to price their product (well under the state avg) to assist medical consumers.
I use that as my excuse but really I have no idea. I have also been trying not too look figuring this was an easy target...since its movement isnt drastic and there is an RS (with uplist...but undetermined consolidation value) looming.
I am glad I look at this late in the day. I had about 10 mins to move some funds to pick up a few more shares just before the bell. However if the usual happens after I buy, tomorrow will be a better opportunity for everyone else.
Rail, as an FYI (not trying to be rude...just informative) if you select the image option around that link it will display the image in your post and not the hyperlink?
Yeah, I know the same but had a odd feeling this week might cause some FOMO with people wanting in before January...and selling their others for an EoY tax loss.
I added a few more at the low earlier today, was hoping for a dip-and-rip that didnt happen.
A lot of half cent sales today. I am guessing some shorts have exited their position today.
DD, nice work on the intro. Thanks for putting in the time.
Good point. I didn't realize he was a moderator. I know I dont plan on changing it...but he can.
DD, liking the facelift! Any objection to adding a recent news section at the bottom that can be removed later. I snagged this from New Cannabis Ventures:
DECEMBER 21, 2020:
+Schwazze Acquires Six Star Buds Dispensaries in Colorado
+Star Buds is one of the Most Recognized and Successful Retail Cannabis Operators in North America
+Company Projects Pro Forma Revenue for Schwazze and its Two Acquisitions (Mesa Organics and Star Buds) of $95 Million in 2020
+Company Expects to Be Cash Flow Positive Beginning in January 2021
+Company Anticipates Acquiring Remaining Seven Star Buds Retail Dispensaries in Colorado during the First Quarter 2021
John, the board is titled appropriately. If you go to the SEC page the company is still found under Medicine Man Technologies...or SHWZ.
I am curious how this plays out. It might set the tone toward how other situations are handled in the industry/future. I need to look into the patent more to see what exactly where they feel the infringement is...because CO2 extraction is common across the entire industry.
Chris has used Epidiolex as an example when talking about DehydraTECH. Not that I think GW will change anything...plus if they did right now they might look guilty...but I wonder if the outcome somehow pressures GW in changing their methods, and if they do, is adding DehydraTECH to the process enough to negate the infringement?
Canopy suing GW Pharmaceuticals over patent infringement on CBD extraction.
https://mjbizdaily.com/daily-news/#cannabis-firm-canopy-growth-sues-gw-pharma-claiming-patent-infringement
Future, I was able to use the delay in loading the subscriber popup to select all, copy and paste the information. We might see another buying op between now and when the remaining 7 dispensaries close:
"The company expects to close on the remaining seven outlets in Q1 2021"
THE BUSINESS JOURNALS
Denver company acquires 6 Colorado cannabis stores in $37.1M deal
By Jonathan Rose – Associate Editor, Denver Business Journal
Dec 21, 2020, 2:48pm MST Updated Dec 21, 2020, 3:10pm MST
Star Buds, one of the iconic names in Colorado cannabis, has sold six of its retail stores to Schwazze, a Denver-based cannabis holding company with ties to the Albertson's grocery store chain, for $37.1 million, Schwazze announced Monday, Dec. 21.
The six stores are part of a 13-store deal that Schwazze, formerly Medicine Man Technologies, announced in June. The transaction brings the total number of retail outlets owned by Schwazze to 10, including four Mesa Organics retail outlets in Southern Colorado it closed on in April.
“The addition of these six Star Buds dispensaries builds on our customer-centric focus, significantly expands our retail operations footprint, and enables us to reach positive cash flow beginning in January," Schwazze CEO Justin Dye said in a prepared release. "With the projected closing of 13 total Star Buds locations, this expands Schwazze’s retail footprint to 17 total dispensary locations in the Denver metro and southern Colorado region, with aggressive expansion plans underway in other areas of the state, positioning Schwazze to be the premier cannabis seed to sale company in Colorado.”
The six stores Schwazze acquired are located in Commerce City, Denver, Longmont, Niwot, Pueblo and Pueblo West.
All 13 of the Star Buds stores are "represented by 13 different ownership groups and arrangements," according to the press release. The company expects to close on the remaining seven outlets in Q1 2021 "subject to securing the requisite funding," the release says.
The $37.1 million purchase price for the six outlets consists of $13.9 million in cash, a $13.9 million seller's note and preferred stock of $9.3 million, according to the company.
Dye's private equity firm, Dye Capital, is Schwazze's biggest investor.
Dye was part of the Cerberus Capital Management team that led the 2006 purchase of a significant portion of grocery chain Albertsons Inc. and its conversion to Albertsons Companies. Albertsons would later merge with Safeway. He then served as Albertsons’ chief administration officer. In 2019, he told Denver Business Journal that his company still owned a "valuable stake" in Albertson's.
Dye has since onboarded several former Albertson's leaders to top-level roles at Schwazze, and explained to DBJ in that 2019 interview what the cannabis industry can learn from the grocery-store industry.
Schwazze entered the Colorado market with a bang in 2019, announcing plans to purchase about a dozen Colorado cannabis entities.It is the 14th largest Denver-area cannabis company when ranked by number of employees, according to DBJ research. The company said it recently eliminated 15 positions in the press release. The majority of its employees are in Denver.
But the realities of the cannabis sector — where due diligence is iffy, public markets saw a late 2019 bubble burst (Schwazze is traded on over-the-counter markets with the ticker symbol SHWZ) and cash can be hard to come by, especially during the Covid slowdown — have impacted its plans. About half of the deals it announced in 2019 have been canceled for various reasons, the company told DBJ in October.
Still, the company now owns four well-known Colorado cannabis brands in Star Buds, Purplebee's (an extractor and manufacturer), Mesa Organics and Medicine Man Technologies, and three brands that may be lesser known but still important in the vertical-integration supply chain: Three A Light (growing and cultivation guidance), Success Nutrients and The Big Tomato (gardening supplies).
Thank you Abundance. And good memory Millennial.
Was it me or did he give the wrong US stock symbol at the end. I listed to it like 10 times and swear he said LXRT....maybe Easter egg on new symbol upon uplist?
But yes, I agree. Very informative...and nice teasers in regards to the news set to come out this week AND the comment on additional company discussions that cant be commented further on because there was no official press release.
Here is an interview with Chris that posted 16 hours ago:
Supi, great find. Thanks for sharing.
Yeah influenza would be huge. Google says that the flu vaccine is 40-60% effective, annually...however over the last few years I remember the local new stating it was moreso around the 25-30% mark. From that article, the line that jumped out at me was, "would be able to produce 1 million to 3 million doses a week". Without an official word, this has to be with the assistance on DehydraTECH.