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Well, will have to see how the rest of the year plays out. Not a lot going on right now.
From your post. “Schumer said, adding that the same bipartisanship will be “essential in a divided government” to pass additional priority legislation”
You know I read something recently about how the congress pasted just 22 bill in 2023, leaving over 300 more unaddressed. I do believe there will be a lot movement in 24, election year and all.
I agree, but things have a way of sorting out in a election year.
Way under the 200day, oh well
Is this under the 50 day, gee, thats too bad.
And yet they still lost 400,000 , 3 million in assets, job well done there. LOL!
The hang up seems to be prolonged effects. I'm aware of the mice study from a few years back, maybe there are others. But currently the FDA is holding it up on what effects long term, and at what quantity would be a safe amount. That is still on going, and again that is for FDA approval
So what your saying is all the stocks in the CBD sector are dying or dead. Well, yes I have to agree.
I don't think this is a good thing. FYI -The use of CBD raises safety concerns, especially with long-term use. Scientific studies show possible harm to the male reproductive system, including testicular atrophy, harm to the liver, and interactions with certain medications.
Can THC or CBD products be sold as dietary supplements? A. No. Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act [21 U.S.C.Sep 28, 2023
FYI- According to data from SPIN, via Natural Products Insider (NPI), in the year ending April 23, 2023, sales of supplements containing CBD as the primary functional ingredient in the US declined about 20% year over year (YOY) from about $54.5 million to roughly $44 million.Sep 22, 2023
Inflation seems to be taking a toll on CBD sales in the U.S., based on insights from global measurement and data analytics company NielsenIQ (NIQ). From March 2022 to March 2023, hemp-based CBD product sales declined by 10% nationwide.Sep 12, 2023
What is the #1 CBD company in America?
Charlotte's Web
The leading CBD company in the U.S. was Charlotte's Web. The company held a 2.27 percent share of the market, based on revenue. Your CBD Store and Medterra were the next leading companies.Nov 15, 2023
Hmmmmmmmmmmm. Topic seems to be paid pumpers working for cvsi. Well, certainly not paid. I mean the reality of it is they would have been fired long ago, failure to achieve don’t you know.
I think many others think the same thing. Heavy on that dysfunctional part and now proven to be true. IMO.
I mentioned several months ago these policy/political decisions would get more bank for the buck if they would occur in the election year. Meaning specifically from the people who pass them.
Was hoping SAFE would pass before now, was thinking it could, but even that failed to happen.
CVSI decided to make a buy. They bought a small Polish plant food company last week. The market responded with a yawn. Water under the bridge now, the next thing is tax loss selling, only 2 weeks left to harvest.
Going thru the notes and the 8k I find some interesting little nuggets. The price paid does include taking care of indebtedness Cultured Foods owed. I would guess that’s standard. In regards to the spares, 7,074,270 restricted shares of Company common stock {wanted to make sure those were common shares} CVSI has a tight control of selling those shares. From the Sec filing.
“Pursuant to the Purchase Agreement, the Member agreed that he will not, on any single trading day sell, transfer or otherwise dispose of any Company common stock, including the Closing Shares, in an aggregate amount exceeding the greater of (i) 15% of the of the Company’s common stock sold in the aggregate based on the greater of the current or proceeding trading day, and (ii) $3,000 in gross value; provided, however, that in the event that the Company enters into a leak-out agreement with any third party on terms more favorable than the foregoing, the Member shall be afforded the same more favorable terms offered to such third party”
I also need to check if this is a ship out only from the Poland to those 15 other countries.
Also, of note that the sellers {McWhorter’s} can’t start up another competitive business for a 1-year period.
Anyway,
Market action on this is low volume and a drop in share price. Seems like the big nothing. Only 24 trades , almost 3 hr's in. Yawn !
Well, it does sound encouraging, I guess the devil is in the details. I think the time frame will also be interesting. Still, it does sound like movement.
Well that is certainly interesting. Within your post we have :
“Current Hemp Market
According to the report, the U.S. Department of Agriculture said that the farm-level value of total utilized hemp production was $238.4 million in 2022, down from $824 million in 2021”
Only ¼ farm level value utilized. Sales drying up? 600 million less than the previous year. Wonder what this year will be.
FYI - FL politics - A new poll found that 67 percent of Florida voters support a marijuana legalization initiative that the state attorney general is trying to keep off the 2024 ballot. There’s majority support in every single political, age, gender and race demographic.
Reminder only - The aggregate principal amount of the Notes currently outstanding is US$130,000,000. As set forth in the notice of redemption, the redemption date will be December 1, 2023 ("the Redemption Date"), and the redemption price is 100% of the principal redeemed, plus accrued and unpaid interest up to, but excluding, the Redemption Date
However none of them are FDA approved. Oh well !
However, 1,000 isn’t a lot of trading, well for CVSI it is, but in general. Our resident pumpaholics need to get busy, they need to run with the ball. Not enough effort so far is all I can say. 😜
And let’s not forget CVSI Management. That new bonus program they voted for themselves of 35 million shares per year plus 4 percent every year after equals over 1 million dollars this year. Put that on top of their wages, well, they ARE living the dream. They have been the tip of the spear ever since this was 6 dollars, just 5 years ago. About time they got paid for what they did!😅
Many thanks to both wolfy and Thomas for the last couple of hundreds posts they put out on CVSI to get those brave 21 on board!
Well, there you go. It did make it to 1000 dollars in trades today. 1053 to be exact. 21 trades, $50.14 on average.
4hr's in $743 in total trades. DEAD IN THE WATER
Well Wolfy, who wrote that, I certainly didn’t. In regards to your triangular merger, sure hope it fits.
A day of giving Thanks. First, I thank myself for not holding this dead in the water failed stock. Now I know some here have held from 5,6 dollars down to 3 cents and are still happy to promote. I am also thankful for not being them. Many thanks for having the common sense to understand what this company is all about. Hard pass time.
And a very special Thanks to the blue-sky pumpaholic’s who in live in the land of make believe, may you have a great Thanksgiving, may your crow be chewy, and may the day be warmer than this stock.
Sure, it’s an accounting measure done by the accountant for this company. That’s what it is. What is means gets more into the weeds of things, however it doesn’t really have a direct impact on sales, earning, price. Will have an effect on assets and enterprise value. Also, non gaap vs gaap.
Should NOT have an effect on price going up, or down, will not have an effect on direct earnings.
If an average investor chooses to ignore it, it would be understandable.
For a larger peek at the nuts and bolts I’ll also post the long version
https://www.investopedia.com/terms/g/goodwill.asp
Have a good T-day as well.
What it appears to be is a made up, make believe story telling and nothing more.LOL!
Wolfy, I don't know how many failing European companies that want to sellout. You should look it up. DD time.
OMG, gab a thesaurus, pull up acquire, you will notice merger is NOT listed.
What about term in business “acquire vs merge”
Unlike mergers, acquisitions do not result in the formation of a new company. Instead, the purchased company gets fully absorbed by the acquiring company. Sometimes this means the acquired company gets liquidated. Acquiring a business is similar to buying an existing business or franchise.
Merger -- A merger is when two or more companies—usually similar in power or size—voluntarily combine their assets to create a new company or legal entity.
Wolfy please contact Websters and get this corrected so you can be happy.
From the CC posted we have a answer on acquire and acquisition.
As stated:
“With that context, I am pleased to announce that we have executed a nonbinding letter of intent to acquire a plant-based food company in Europe. Closing of this important strategic acquisition is expected to occur before the end of the year.”
This should clear up any confusion on a merger. It’s a acquisition. Now we will have to see how they are going to pay for it.
The last CC- just wanted to get this out on the record.
CV Sciences, Inc. (PNK:CVSI) Q3 2023 Earnings Call Transcript November 14, 2023
Operator: Good day, and welcome to the CV Sciences, Inc. Third Quarter 2023 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to CV Sciences. Please go ahead.
Brendan Hawkins: Thank you, and good morning, everyone. With us today with prepared remarks are CV Sciences’ Chief Executive Officer, Joseph Dowling; and Joerg Grasser, Chief Financial Officer. After prepared remarks, we will take questions from the analyst community. I would like to remind you that during this call, management’s prepared remarks may contain forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those anticipated by CV Sciences at this time. When used in this call, the words anticipate, should, could, estimate, intend, expect, believe, potential, will, project and similar expressions as they relate to CV Sciences are as such forward-looking statements.
Finally, please note that on today’s call, management will refer to non-GAAP financial measures in which CV Sciences excludes certain expenses from its GAAP financial results. Please refer to CV Sciences’ press release from earlier today for a full reconciliation of its non-GAAP performance measures to the most comparable GAAP financial measures. This morning, the company issued a press release announcing its financial results. Participants on this call who may not have already done so, may wish to look at the press release as the company provides a summary of the results on this call. The press release may be found at cvsciences.com. I’d like to now turn the call over to CV Sciences’ Chief Executive Officer, Mr. Joseph Dowling. Joe?
Joseph Dowling: Good morning, everyone. Thank you for joining our call. This morning, we issued a press release reporting results for our third quarter ended September 30, 2023. We are very pleased with our Q3 results as we continue to move towards a profitable and positive cash flow operation. Significant financial highlights during Q3 included: we increased our revenue to $4.1 million for the third quarter 2023, which is both a sequential and year-over-year increase in a very competitive environment where many of our competitors are experiencing significant revenue declines. We achieved a gross margin of 45.1% in the third quarter, which is again both a sequential and year-over-year increase. For the 9 months ended — of 2023 — for the first 9 months of 2023, we generated cash flow from operations of $2.4 million, which included the collection of $2.5 million of governmental tax credits.
Nevertheless, it is a huge improvement when compared to cash used in operations of $2.1 million for the first 9 months of 2022. We continue to have a balanced mix of B2B and B2C revenue, and maintained our number one position in the natural products retail channel. We are increasing our market share in the natural product retail channel while brand contraction and consolidation continue to weed out weaker brands. We are aggressively managing working capital to ensure timely conversion of our receivables and inventory to cash. And our cost efficiency efforts continue to result in a lower overall company cost structure with efficiency gains and cash savings in several areas, including SG&A. Joerg will provide details on each of these areas during his remarks.
Our Q3 financial highlights illustrate the tremendous progress that we have made to achieve profitability and positive cash flow. We have strengthened our operations and positioned the company to pursue and leverage both organic and M&A growth opportunities. Our asset-light business model is well-positioned to take advantage of an industry that is contracting and maturing requiring greater professional capability and trustworthiness. Q3 was a continuation of the diligent work of our team as we continue to see the positive financial impact of several years of hard work in properly scaling the company, putting us in a position to leverage the strength of our assets, including our B2B and B2C distribution, our flagship PlusCBD brand and the quality of our employees.
On the revenue side, our short-term goal continues to be to get the company back to a $5 million plus third quarter revenue run rate and much higher. During Q3, we continue to make progress in overcoming the supply chain issues we experienced during 2022. Brand contraction in all B2B sales channel is continuing as retailers are working through old inventory and removing slow-moving brands. As I mentioned, we are the number one selling brand in the natural product retail channel, and we continue to see market gains for CV Sciences and our flagship brand, PlusCBD. Customers are loyal to brands they trust, and we continue to see movement to our PlusCBD brand, which continues to be at the top of the list in the important natural product retail channel.
Our B2C sales channel continues to improve. Our B2C infrastructure is scalable and can support nearly unlimited traffic and activity. On a daily basis, our team works to optimize our merchandising and marketing efforts to optimize our ROI and to ensure that we are achieving our return on ad spend targets. We are seeing results in all critical B2C KPIs, including visitors despite much lower digital marketing spend. Brand contraction, increased education and consumer trust will all help grow the B2C channel, and we are prepared to grow the channel and take market share as the category contracts and evolves. We believe our B2B and B2C channels work closely together as our customers often learn about or even try our products from a B2B retailer and then over time, transition to a B2C customer.
The strength of our combined B2B and B2C distribution is a key asset and strategic consideration in our M&A strategy, which I will discuss in a few minutes. Product development will continue to be important for our growth strategy. We know that consumers are looking for high-quality and trusted brands like ours PlusCBD product that can address specific need states. We continue to address this trend and plan to launch new products similar to our wellness line, including our Sleep, Calm and Relief products, and our over-the-counter topical line. Earlier this year, we launched our innovative Reserve line to extremely favorable customer reviews and demand. We will continue to innovate and launch new products that are responsive to our customers and their specific needs, including for anxiety, pain and sleep disorders.
We believe that strong science supports our product claims and will win the trust and loyalty of our existing and new customers. On regulatory matters, we remain active with the U.S. Hemp Roundtable and other advocacy groups to provide Congress and the FDA with data and the information needed to advance sensible legislation for the hemp industry. As discussed during our Q2 2023 earnings call, a recent subcommittee hearing of the House Oversight Committee included strong testimony regarding CBD safety along with regulatory recommendations from industry experts to advocate for FDA and Congress to regulate CBD as a dietary supplement and food and beverage additive. We strongly agree with this recommendation and believe that current regulations governing dietary supplements are the starting point to establish a regulatory framework for the CBD industry.
The absence of federal regulation continues to be a challenge. This void has led many states to enact regulations that are extremely challenging and costly for companies to comply with. This has led to confusion for both retailers and consumers. Inaction by FDA and Congress is frustrating, but we will continue our active involvement at both the federal and state level, and will remain persistent in pushing Congress and FDA to make progress. We all know that a sensible regulatory framework will significantly benefit our industry and consumers and will create an environment where quality companies and products can be trusted to grow the category responsibly. Before I turn the call over to Joerg to discuss our financials, I want to briefly discuss our M&A strategy to help grow the company and increase shareholder value.
Our company has numerous strengths and assets that can be leveraged much further. This includes our B2B and B2C distribution, the strength of our flagship brand PlusCBD, our scalable infrastructure in systems and process, and most important, the talent and expertise of our employees. We are transitioning to become a global health and wellness company that will not only participate in the CBD category, but also leverage our strengths to pursue non-CBD nutraceuticals and other plant-based food products. Over the last several quarters, we have discussed our participation in select M&A opportunities. As part of this process, we have evaluated numerous opportunities that would allow us to leverage our strength and assets that I just described. We are being extremely selective, making sure that anything we do must be a good strategic fit with favorable economics to our shareholders.
With that context, I am pleased to announce that we have executed a nonbinding letter of intent to acquire a plant-based food company in Europe. Closing of this important strategic acquisition is expected to occur before the end of the year. The challenges in our industry continue, but we are well positioned with an efficient business model and operating structure. We continue to streamline operation, increase cost efficiency and are positioned to leverage our company’s assets and strengths, both organically and through our M&A strategy. We are moving towards profitability and cash flow positive in the near term because of tough decisions that we have made over the last several years. Let me pause now, and I will turn the call over to Joerg.
Joerg Grasser: Thank you, Joe, and also good morning to everyone. During the third quarter, we saw the results of several of our key initiatives, which we talked about in previous earnings calls. We realized top line revenue growth in a very competitive market where most of our competitors are experiencing sales declines and we continue to see a positive financial impact of our cost-efficiency measures across all functional areas of the company. Over the last several years, we have significantly reduced our cost structure without significant productivity losses. And we are well positioned for operating leverage as we continue to increase revenue, all with the main goal of creating shareholder value. Our third quarter revenue increased by 9% to $4.1 million compared to $3.8 million in the third quarter of 2022 and sequentially by 3% from the second quarter of 2023.
The year-over-year increase is mostly due to higher sales volume of 6.1% and higher average sales prices per unit of 3.2%. We were able to take market share from our competitors across all of our sales channels. Our new product introductions were successful and our team is doing a nice job on executing on our go-to-market strategy. New products introduced since the beginning of 2022 represented 36.4% of our Q3 2023 revenues, which shows the importance of new product innovation. Overall CBD market continues to be fragmented and very competitive. We don’t see this changing anytime soon, but we see further brand consolidation and brand contraction, which are opportunities to continue to increase our market share and increase our revenue base. Our direct-to-consumer business continued to perform well with modest digital marketing spend and associated sales represented 40.9% of total revenue in the third quarter compared to 43.8% a year earlier and 42.3% in the second quarter of 2023.
Our B2C revenue grew by 2% on a year-over-year basis as our team made solid improvements to our main digital KPIs. We were able to continue to increase our business to our website on a sequential basis despite lower paid advertisement spend. Our e-commerce team also made good improvements to our subscription and loyalty programs and increase our overall customer base, all good signs for further revenue growth in this channel. Gross margin for the third quarter of 2023 was 45.1%, our best gross margin in the last 8 quarters. We recognized gross margin of 41.6% in the third quarter of 2022 and 43.3% in the second quarter of 2023. The improvement in gross margin compared to the prior year is mostly due to reduced shipping and fulfillment costs, lower overall overhead as well as higher average sale prices.
We are working on further cost efficiencies in order to continue to improve our gross margin. SG&A expense for the third quarter was $2.2 million, down from $2.4 million a year ago. These improvements are a direct result of our ongoing efforts to reduce our overall cost structure. We have taken cost out from all areas of our business and continue to do so in order to generate positive cash flows. For the third quarter 2023, we generated an operating loss of $0.4 million compared to an operating loss of $0.9 million a year ago. Our adjusted EBITDA loss for the third quarter was also $0.4 million compared to $1.2 million in the third quarter of 2022. The improved operating performance and adjusted EBITDA loss is the result of our asset-light business model, which allowed us to implement cost savings throughout the organization to minimize our cash outflow.
On a GAAP basis, we reported a third quarter 2023 net loss of $0.4 million compared to a net loss of $1 million in the third quarter of 2022. Now let me turn to our balance sheet. We continue to manage our cash position very carefully and ended the third quarter of 2023 with $1.6 million of cash compared to $0.6 million at the end of fiscal 2022. Cash generated by operations during the first 9 months of 2023 was $2.4 million, a significant improvement from the same period a year ago, which had cash usage of $2.1 million. The improvement in our operating cash are mostly due to the receipt of ERC fund of $2.5 million and lower cost of operations. Excluding the ERC fund, our cash flow from operations is essentially breakeven. During the third quarter of 2023, we used a modest amount of $19,000 in operating cash.
We continue to aggressively manage our overall cash position with improved cash collections on our outstanding AR and daily management of our inventory and vendor payables. We continue to adjust our cost structure to be in line with our expected revenue, both overarching goal of generating positive operating cash on a continuous basis. Our inventory was $5.7 million at the end of the quarter compared to $6.6 million at the end of the year as we continue to focus on efficient cash management and converting our raw materials into cash. Our raw materials mostly consists of hemp oil, which we previously purchased and continue to convert into finished products. Our raw material balance has decreased from $3.6 million at year-end to $2.9 million as of September 30, 2023.
Also, in April 2023, we extinguished our note payable with Streeterville, and are now essentially debt-free. In addition, we have working capital of $2.4 million. With our improved balance sheet and our reduced cost structure in place, we have the financial flexibility to continue executing our plan and look forward to improving trends as the year unfolds. Now, I’ll turn the call back over to Joe.
Joseph Dowling: Joerg, thank you. As Joerg and I have discussed this morning, in spite of the challenging environment, we will continue to move the company to profitability and positive cash flow in the near term. Our Q3 results show progress not only in growing revenue but doing so profitably. The contraction and consolidation of our industry continues to be a positive trend as the number of brands and products on shelf and online both declining significantly, allowing us to increase market share in both B2B and B2C channels. As I mentioned in my earlier remarks, we are doing everything possible to advance sensible regulation at both the state and federal level. We are working closely with our industry peers and advocacy groups to bring a unified voice to Congress and FDA.
Our drug development program in treatment of smokeless tobacco use and addiction remains a valuable asset of the company, with patent already granted in the United States, Canada, Australia, Japan and 6 EU countries. We continue to believe that this drug development program has significant value. And even though we have paused development of this program internally, we continue to see collaboration partners on this program. We are excited about the short- and long-term opportunity for our company, the CBD category and the global health and wellness opportunity that we are pursuing as part of our M&A strategy. We are working through the final details of the M&A transaction I mentioned earlier in my remarks and are looking to close before the end of the year.
We are continuing to look at other domestic M&A opportunities and select international opportunities. We are making continuous improvement to ensure that we are scaled properly, operating efficiently and are focused on adding long-term shareholder value. We will continue to focus on our customers, retail partners and new product and market development as we continue to position the company for long-term success. Thank you very much for listening this morning. I will now turn the call back over to the operator for any calls from the analyst community.
No, was not referring to the CARES act loan. At this point we don’t have enough info to determine, well, anything. What size of this company, what cost? I don’t think they are buying a company bigger than they are {3mil currently} If under that they could go the way of last year’s Streeterville a secured promissory note. The Streeterville Note was secured by all of the Company’s assets. They got 1.6 mil and in a very short time frame had to pay back 2. Mil by weekly payments. But again, we don’t know the size of the company/value. We also don’t know if it’s a private company without stock. We don’t know if they will accept stock in trade.
All of those questions will be resolved once the company presents to the shareholders. And at this point it’s just a letter on intent.
Yes, it did. That is more to do with accounting measures determined. There is a specific to your question and a general overview. I’ll list both, all coming from the 10Q.
“During the three months ended June 30, 2023, the Company continued to experience a declined stock price resulting in the market capitalization being less than the carrying value of the reporting unit. The Company updated the March 31, 2023 valuation, as of June 30, 2023, with no impairment identified finding all inputs, including but not limited to future operating performance, gross margins, probability of achieving cash flows, and multiples of comparable public companies, either maintained consistency or trended positively for the three months ended June 30, 2023. Furthermore, the Company performed a sensitivity test on the income approach updating for the exit of the Massachusetts operations identifying the Massachusetts exit accretive to earnings as the Massachusetts assets were underperforming. However, the Company concluded the sustained stock price decline was a triggering event to perform an interim quantitative goodwill impairment test, as of June 30, 2023, specific to the stock price decline and resulting market capitalization of the Company. As the sole risk to the value of goodwill was the stock price, the Company concluded it most appropriate to transition to a market approach. The results of the Company’s interim test for impairment as of June 30, 2023, utilizing a market approach, indicated that the reporting unit's fair value fell below the carrying value. Based on the results of the goodwill impairment procedures, the Company recorded a $307.6 million goodwill impairment for the single reporting unit during the three months ended June 30, 2023.”
Overview.
“Critical Accounting Estimates and Judgments
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates in our condensed consolidated financial statements, include, but are not limited to, accounting for acquisitions and business combinations; initial valuation and subsequent impairment testing of goodwill, other intangible assets and long-lived assets; leases; fair value of financial instruments, income taxes; inventory; share-based payment arrangements, and commitment and contingencies. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.”
and
“Management's Use of Non-GAAP Measures
Our management uses a financial measure that is not in accordance with generally accepted accounting principles in the U.S., or GAAP, in addition to financial measures in accordance with GAAP to evaluate our operating results. This non-GAAP financial measure should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. Adjusted EBITDA is a financial measure that is not defined under GAAP. Our management uses this non-GAAP financial measure and believes it enhances an investor’s understanding of our financial and operating performance from period to period because it excludes certain material non-cash items and certain other adjustments management believes are not reflective of our ongoing operations and performance. Adjusted EBITDA excludes from net income as reported interest, provision for income taxes, and depreciation and amortization to arrive at EBITDA. This is then adjusted for items that do not represent the operations of the core business such as integration and transition costs, acquisition and transaction costs, inventory step-up for fair value adjustments in purchase accounting, other non-recurring costs such as contributions to specific initiative campaigns (such as Smart and Safe Florida), expenses related to the COVID-19 pandemic, impairments and disposals of long-lived assets, the results of entities consolidated as variable interest entities ("VIEs") but not legally controlled and operated by the Company, discontinued operations, and other income and expense items. Integration and transition costs include those costs related to integration of acquired entities and to transition major systems or processes. Acquisition and transaction costs relate to specific transactions such as acquisitions whether contemplated or completed and regulatory filings and costs related to equity and debt issuances. Other non-recurring costs includes miscellaneous items which are not expected to reoccur frequently such as inventory”
Geez, I under estimated just how much Kool aid you drank.
Let’s see here. The press release stated acquisition, the conf call when the CEO mentioned acquisition, seems to point to an acquisition. The only person to mention a merger is YOU. Now I suppose the CEO isn’t smart enough to know the difference, but he should have had somebody in the company mention the difference before he spoke, you think?
As far as a loan, depending on the number they certainly could get one. Just like they did last time, put the whole company up to secure. You seem to be under the impression that this acquisition is going to be for a company the same size or bigger. Why? Were was that mentioned. It could be for a company smaller to very much smaller than the 3 mil this company is worth. You don’t know, do you. You can play your make-believe game but at the end of the day you don’t have a clue. As I stated, they will come out with whatever they are going to try and do to the shareholders. Wait till you have some facts before you go off the deep end.
Some what happy to help.
Sorry your confused. Here -- What is the difference between an acquisition and a merger?
The terms "mergers" and "acquisitions" are often used interchangeably, but they differ in meaning. In an acquisition, one company purchases another outright. A merger is the combination of two firms, which subsequently form a new legal entity under the banner of one corporate name.
As stated by the company, this is a acquisition.
Doesn't have to be done with swaps. They can just get a loan, the banks make those things available you know.
Happy to help!