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I don't understand the issue. The thesis is the Congressional action will stimulate demand. But has demand been constrained by the regulatory environment? How?
The Brightfield report predicted market growing to $22B by 2022.
https://www.myprimelife.com/hemp-cbd-market-projected-to-grow-to-22-billion/
That's pretty solid growth for the industry. Has some recent regulatory action made the predictions no longer operative? I know about the letter that FDA send out regarding unsubstantiated health claims, but nothing else. Have I missed something?
If it is about that letter... well... I mean, were Brightfield's market projections based on fake health claims? If the whole market growth was premised on selling CBD on fake claims, then... good luck. What, will Congress pass a law to make fake claims OK? That can't be.
What is it, regulatory-wise, that is derailing the predicted growth of the market, which now must be reversed by Congress to restore the growth?
I'm missing something here. Can someone explain?
good call
Neal, agree! If they can generate strong revenue and keep expenses down, they can re-pay the Note with cash (avoiding dilution), pay their other debts and payables, and we all win and are happy.
So what are we talking about? Did Andy provide guidance?
The EXDI guidance for 2019 from April was Revenue of $32M, Net Income of $21M.
https://www.globenewswire.com/fr/news-release/2019/04/29/1811475/0/en/Exactus-Initiates-Operations-on-Two-100-Acre-SW-Oregon-Industrial-Hemp-Farms.html
(000s) 2019
Total Revenue 32,557
Cost of Sales 3,540
Net Income 21,462
Now, I doubt that these are still operative, CBD prices have gone down quite a bit since April. I have pricing data from hempbenchmarks.com, which shows for April and December, respectively:
Biomass (100k – 1M pounds) p/p/p
April: $3.66
December: $1.45
Decline: ~40%
Dry Flower (Bulk) $/pound
April: $326
December: $221
Decline: ~40%
So prices dropped by 40% from April to December, HOWEVER, in the fall Exactus pre-announced flower harvest per acre was 50% higher than projections, and then in October they purchased the 49.9% of the harvest that they didn't own, for stock.
So you add it up, prices dropped by 40%, but revenue acreage doubled, and on on top of it you have 50% higher yield per acre? You should get about the same ballpark, $30M. Yes or no?
Frankly, I'd be happy if they get even half that for the year: $15M-ish...
What did Andy say?
Neal, any specifics on the Note and on the # of shares outstanding?
Convertible Debt was exchanged for Series A pref, which are convertible into 2.9M common shares. That could explain some of the bump, yes.
in half-a-quarter, literally. An eighth :)
Not exactly the same.
Here's what has been disclosed:
09/30/19: 40,024,389 shares (10-Q and S-1)
12/18/19: 40,848,558 shares (S-1)
02/01/20: 48,986,825 shares (8-K)
pretty hefty jump from 12/18/20 to now...
Another question I have is with regard to common shares outstanding.
The S-1 filed in December says there were 40,848,558 common shares outstanding as of December 18, 2019. Yesterday's 8-K lists 48,986,825 common shares issued and outstanding, after the grant of 1,955,000 shares to executives, employees and consultants on February 1st.
That means about 6,000,000 shares were added between December 18 and January 31st, prior to the stock grant on February 1st. These have not been disclosed, and I am pretty sure that these are not coming from the Note converting.
It will be interesting to see where these 6,000,000 or so shares came from.
Yes, we don't know if the Second Closing took place or not (as you had predicted before).
However, I am pretty sure that no conversion has been effected by the Note-holders, as redemptions start at 90 days after the initial closing, which would be end of this month. So I don't think any shares have been issued to the Note-holders, yet.
I think, based on the message history here, most people would agree that it was an honest omission on your part, regarding HempHealthy.
Which brings up two questions:
1. Is it adequate disclosure practice for a company to pronounce a pending acquisition in multiple press releases and a company presentation, and then to bury its failure to close in a Friday afternoon 8-K among other items. If a savvy investor with Wall Str. experience can get fooled, what does that say about the disclosures?
2. In your meetings with the company, why did nobody correct you for months on? On the convertible Note, they jumped with clarifying press releases in response to posts here. Yet, they left your wrong posts without clarification: neither publicly, neither to you personally, as far as I understand.
There are two questions on the convertible Notes.
1. Are the Second and Third Closing happening?
tigerpac in Posts 522 and 524 opined that they were not happening. tiger was challenged to explain by Andy (Post525) but he didn't.
The Second Closing was supposed to happen on the third day after filing an S-1 registration, i.e. early January. It hasn't been disclosed.
It is not clear if they need to disclose it, since it is part of the same Purchase Agreement that was already disclosed.
So the question to clarify is, whether Second Closing happened or it didn't happen as tigerpac predicted. (Third closing is after the S-1 becomes effective)
2. How much is the Note holder paying for shares?
a. tigerpac and bcblbrm calculated the conversion price at $0.147 (Posts 522, 523)
b. in response the company issued a press release claiming $0.50
c. hempspeculator calculated it at $0.32 in Post 577
Which one is it?
The convertibles are a good question, but how are we going to hear from Andrew Johnson on them? Is he posting on the Board? LOL ;))) ;)))
Neal, you and I are the only people on this board who have chosen to disclose their true identity. This allows people to search and find all relevant information about me, as tigerpac apparently has done. I-Hub policies strongly protect anonymity and do not require any disclosures from posters, including moderators.
That is unfortunate, I'd love to see some other people disclose their identity, in particular Andyman23, however we need to respect the site's policies.
As for hempspeculator: I have no idea, but can only speculate the reason is that he posted disparaging materials about I-Hub. As far as I am concerned, he is more than welcome to come back and post, but I am not Admin.
This whole discussion is off-topic, and it may be taken down by the Admin. I will stop here, and I strongly suggest that you stop as well. If you want to continue off-line, find me on LinkedIn.
Cheers.
:))) Trust me, Neal, you don't want that!
(But also it's not condoned by I-Hub: they want discussion on the stock/company not on the posters, unfortunately.)
Andyman23, I own EXDI shares and have other vested interests in the legitimate financial success of Exactus, which are disclosed in public records.
Companies don't rise and demise on message boards. The things that matter are solid strategy, clean execution, and strong management. In addition, for public companies, effective and credible communication practices are also essential, while private companies can be successful without them.
Andyman23,
Your post echoes your comments from Post559, which you posted after a conversation with Mr Johnson. Did Mr. Johnson intimate to you the deal that was just announced, and which provides Exactus with a CBG source?
That would be quite troublesome from RegFD perspective.
Please, explain.
buzinessman
Another direction they are also exploring, porn actresses:
https://twitter.com/nicolette_shea/status/1157333842757394433?lang=ca
(no judgement, just info)
To clarify:
Green Goddess is a U.K.-based brand, and their website is greengoddesswellness[dot]com
The Exactus brand is called Green Goddess Extracts, and is offered through exactushemp[dot]com
Neal,
Thank you for your contribution in posting this.
Could you, please, post the last (signature) page of this same 8-K, and if you have any comments on the CEO/President change in Exactus that is disclosed there?
Thanks again!
Welcome aboard!
nealhugh, I “get” it: a sophisticated investor, with experience on Wall Street, who has cultivated relationship with the IR Director of the company did NOT KNOW the status of the retail and marketing development.
The thing is, that’s not how public stocks work, at all! Public companies are supposed to provide enough material disclosure about their operations so that even non-sophisticated investors can make informed decisions, let alone former Wall Str. guys who talk intimately to the company.
How did this happen?
Hempspeculator,
yes, it was disclosed: https://www.sec.gov/Archives/edgar/data/1552189/000165495419004342/exdi_8k.htm
This was on April 12, 2019, yet, you kept posting in July and over the summer about HempHealthy being owned by Exactus and being a key for their retail strategy. The Curaleaf article you linked is also from July...
You need to explain better your conduct, it does not seem honorable.
What do you mean by this:
"It was for this specific reason that I decided to not only rely on press releases but cultivate a relationship with Andrew." If Andrew told you that the Press Release was unreliable, why did you keep posting here as if HempHealthy is an Exactus brand? Why did you re-post a link to the "fake" PR yesterday, if Andrew had told you that it was not to be relied on? Also, the PR has Andrew's contact at the bottom, are you are saying that Phil issued it without Andrew's knowledge?
I don't follow at all what you are saying, you need to explain better.
Hempspeculator, you link to sources with false information. Hemp Healthy was never acquired by Exactus. These are false reports, and a sophisticated investor, who is in frequent contact with the company should know this. FDA has absolutely nothing to do with this, the brand and the website is still in operation (www.buyhempcbd.com), but it was never owned by Exactus. For you to continue to spread misinformation and false facts is NOT kosher at all.
kd
hempspeculator,
You are correct that EXDI is a speculative investment, and you shouldn’t be held accountable for your past predictions regarding PPS, market/industry dynamics, etc.
HOWEVER, you DO need to provide answers regarding statements like this:
Post 250 from 07/08/2019, “ At the end of this year we will be selling high quality CBD oil under our Hemp Healthy brand and be fully integrated, from "Ceed2Meed" to the retail customer.”
The HempHealthy brand was never owned by Exactus, yet in several post you said that it would be central to the company’s retail strategy. You are sophisticated investor, with experience on Wall Street and in frequent contact with the VP at Exactus (Johnson). It was not OK for you to spread factual misinformation.
being wrong on speculative predictions about the future is OK; spreading factually incorrect info is not OK, and you should have known it.
Happy New Year and GLTY
Sir, you absolutely project like an experienced, sophisticated, and diligent investor. You have even spoken directly to the IR person at Exactus. Can you elaborate a bit more on your view of how HempHealthy(R) is going to drive the company’s retail strategy, as you wrote in a previous post. Did the IR person convey this to you? Thanks in advance!
Yes, exactly. Thanks for the clarification, and I apologize my question was not clear.
This is interesting posting on both of yours part.
Yes, exactly. Thanks for the clarification, and I apologize my question was not clear.
This is interesting posting on both of yours part.
Cane, why do you think so?
We have a lot to say about this company. Patience.
This is Dr. Krassen Dimitrov, is this the best Board for EXDI?
I just received a strange letter from Harvey Kesner, who seems to be quite popular in the penny-stock community. Kesner is a Founder, Lender, former Stock Transfer Agent... and who knows what else for the EXDI public shell. Now looks like he's presenting himself as an attorney for EXDI, as well. :))) Things will get interesting for EXDI.