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This looks like a convenient way to pass of this bad investment in Dixie Elixers to the shareholders of CANN. Dixie has never performed, not even in Colorado where they began. Their operation is a joke.
It appears the sale of warrants and stock options is the only thing bringing in enough cash to keep this boat afloat. Revenues are flat and there continue to be cash operating losses of 5-600,000 per quarter. A tough way to "grow" into profitability.
Companies HATE booking derivative liabilities --- they do it because it is required by accounting standards put forward by the FASB and the AICPA. They don't do it for a tax deduction.
Even without considering the derivative liability, the company had a CASH (EBITDA) loss of over $1.5 million last year. The business segments operated at a loss (when considered in total) and then corporate overhead costs brought the amount up to $1.5 million.
In my previous post, I was wrong about the O/S shares...looks like we're up to 19.3 million shares as of last week.
Alan:
I agree completely. The only segment of the company that is not losing company is the rental division which still only has that one small grow facility in Pueblo. The O/S count as of last week was over 17 million shares, with more dilution to come as soon as the price starts plunging again. Bad business model and terrible management in this dog.
The 10K annual report is due March 31 but it can be extended until April 15th.
They won't release earnings before the audit is complete, which will be the end of March at the soonest. Remember, this is the annual 10K report. You're right that the quarterly reports that come out throughout the year come out 5-6 weeks after the end of the period, but not this one.
Earnings have to be reported in the 10K annual report which is due March 31, but they can extend the deadline up to 15 days beyond that.
The sellers are lining up, and they're not waiting for the S-1 to be effective. Once that dilution hits, and management cashes out more of the $10 million in warrants that are earmarked for their "incentive plan:, the pps will plummet. As far as acquisitions go, the company usually issues stock and warrants to purchase their subsidiaries. What value will they have and who is going to want to play with that?
I too made some significant profits in the runup to the election. That does NOT mean that this stock has anything going for it fundamentally, and it is bound to keep falling at this point.
What a truly ridiculous article. When will these analysts understand that there is a difference between revenue and profit? The statement that "CANN is making real money" is completely false....the company is currently burning 750K in cash each quarter. As their revenue grows, so do their costs. Where is the profit???????
The warrant holders can't sell the 9 million shares until the SEC approves the S-1 filing, which will take a few months. The S-1 filing is hurting the stock price because all of the financials of the company are out there in plain view and they are terrible. Revenue is up but so are the operational costs, so the divisions are not making anything, plus you have a $3 million corporate nut each year at this run rate. Add the massive dilution to that, and the stock has no where to go over time but way down.
All the cannabis stocks are tanking today: AMMJ, SRNA, MJNA.... the pre-election hype that caused this bubble is deflating.
This has nothing to do with CANN or cannabis, in general. Donald Trump is the "law and order" candidate who does not like cannabis and has threatened to enforce federal law.
Peter B. is having to step up because Michael Feinsod has already loaned the company $1mm and is probably tapped out.
That $50,000 will only cover Robert Frichtel's salary for 4 months. The Company has a severe cash crunch going on.
The problem with this business model is that the revenue is not growing at a fast enough rate to cover the huge short-term debt load that keeps increasing. With the stock trading where it is, how does the company raise additional capital?
You folks must be looking at a different report than I am. What I see is four operating divisions that when consolidated lost money for the quarter, and then a huge corporate overhead amount added to that to
create a quarter's loss of over $800,000! Then add the fact that the current liabilities on the balance sheet are almost 10 times the current assets, and you have an insolvent company with no way to survive without constantly borrowing more money. It is NOT growing itself into profitability.
Looks like another worthless subsidiary of FWDG:
https://www.firstwordpharma.com/node/1404496
The SEC requires that the 10Q be filed by August 15th. CANN can file for a 5 day extension, which would put the drop dead date at Friday, August 19th, two weeks from today.
Did anyone hear how the grand opening for the Chiefton store went? Haven't heard anything...
How can they possibly own that amount of stock that is listed in those filings when the entire amount of outstanding common stock is 15,495,421 as of May 9, 2016? Those two guys would have a combined total of 25 million shares?
These 3 Form 4 filings relate to options that have been granted by the Company, not any stock that they've purchased.
What happens after no bid?
LOL...absolutely hilarious!
Well said, Alan.
Stocks are down for the entire cannabis industry, including the VERY FEW companies that are actually performing. At some point the accounting equation kicks in, which basically says that more has to come in than goes out. A lot of these companies are using toxic, dilutive debt just to keep the doors open.
Of the over 300 publicly traded cannabis stocks, I think that only 5-10% will avoid bankruptcy in the coming two years.
A monitoring well is a long way off from a fully producing commercial well permit. The adjudication process for water rights in Colorado is a lengthy and expensive process. So far no one in Huerfano County seems to have been able to do it.
How do you book $57 million to goodwill? No auditor in their right mind would allow this entry.
Yes, please do....I'm in.
If you want to see some ridiculous claims from Cameron Cox, check out this video from CFN. It was from the New York conference earlier this year. Interesting how he drops the name of Genifer Murray, who was recently thrown out of her own company by the board of Cann Labs.
http://www.cannabisfn.com/cfnvideo/?id=bVgM9iPR
If you want to see some ridiculous claims from Cameron Cox, check out this video from CFN. It was from the New York conference earlier this year. Interesting how he drops the name of Genifer Murray, who was recently thrown out of her own company by the board of Cann Labs.
http://www.cannabisfn.com/cfnvideo/?id=bVgM9iPR
The FUTL property is not worth that much. The comps that you are talking about are the result of the big land purchase that closed last week within the Walsenburg city limits, which includes access to city sewer, water, and utilities and all the other infrastructure that comes from being there. That is what made the land worth $4,000 an acre, compared to rural land with questionable water rights.
Check out this ridiculous posting on their facebook page..
https://www.facebook.com/futurelandcorp/
What they don't say is that the Martra property is within the city limits of Walsenburg and has complete access to water and utilities from the city. What good is land in the middle of nowhere with no water?
Why would anyone sign a lease for a grow that has no water?
Spinning off subs to create "value" is simply a ponzi scheme.
If this company was real, the cost of developing all of these lines of business would be extremely high and your theory that just needing one item to succeed wouldn't matter because they would already be bankrupt. My guess is they haven't developed anything at all.
Why the attack on 420 Investor? EVERYBODY who has been involved in cannabis stocks for the last two years has taken it in the shorts. As far as PHOT goes, everyone in the stock universe was on board.
It doesn't matter if you are an ancillary --- believe me, I worked in a publicly traded company that invested in real estate to lease to growers. You have to disclose everything, including who your tenants are, and you get lumped in. It took over a year to get the S-1 effective.
Very true....and no auditor in the world in their right mind would allow a company to book those assets.