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Looks like this thing is just going to bounce around in the $0.20s until they get FL and MA up and running. They desperately need more profitable dispensaries open. I'm curious about the details of the CBD sale. Hopefully that cleans up a lot of the trouble on the balance sheet.
Looks pretty bad in the short term, but if they can steady the ship and start opening dispensaries as profitable as their first two, $20m+ annually each, it could be a solid company down the road. Think...
10 dispensaries * $20m/yr = $200m
20 dispensaries * $20m/yr = $400m
40+ dispensaries? holy cow!
2 or 3 years from now COULD be nice for longs that just wait it out. I think they obviously expanded a bit too fast for the little bit of revenue they got out of the CBD side... Maybe they thought there would have been more hype/intrigue in their products and less FDA regulations/red tape leading up to the holiday season, who knows, but I can't believe they would assemble this retail team for a scam and put all of this money toward it. They have a clear direction now and fewer liabilities/overhead. Might as well hold on to it now and see where it goes.
https://eresearch.fidelity.com/eresearch/evaluate/news/basicNewsStory.jhtml?symbols=GGBXF&storyid=202002111020MRKTWTCHNEWS_SVC000265&provider=MRKTWTCH&product=NEWS_SVC
This doesn't sound good. Hopefully they can find a way through this.
Among U.S. cannabis names, Green Growth Brands Inc. (GGBXF) is in the most precarious position with less than a month's worth of liquidity available to it, according to the analysis. MedMen Enterprises Inc. (MMNFF) (MMNFF) , which MarketWatch reported recently was offering shares in exchange for cannabis to stock its shelves (http:// www.marketwatch.com/story/us-pot-retailer-medmen-says-its-trying-to-use-stock-to-pay-its-bills-amid-cannabis-industrys- cash-crunch-2020-01-23), has half a year's worth of cash remaining, while Harvest Health & Recreation Inc. (HRVSF) has just more than nine months of available liquidity, according to the report. MedMen (MMNFF) and Harvest Health did not respond to requests for comment.
"The entire sector is experiencing a considerable cash crunch," a Green Growth spokeswoman wrote in an email. "Like many of our peers, we are closely monitoring capital and are working with key investors to secure additional funding."
Yeah none of this looks too good, but a lot of this might be panic selling. IF they get through this and stabilize their business and supply chain, this is potentially the buy of a lifetime. It is getting scary dumping more money into this though.
I'm holding because, at this point, why the hell not. But I think I might be done buying until I hear some good news from management.
I plan to watch this later lol I'm sitting at work. Although I added today as well and have been and will be consistently adding all year.
I agree that I do not believe they would even consider closing the doors this early, but I'm sure crazier things have happened. They just have too much time, effort, and money wrapped up in this at this early stage, and they haven't even begun to open up the majority of the dispensaries that can bring in $20m+ annually each.
I, like a lot of people, am down A LOT right now, so I might as well see this through at this point.
I find it hard to believe that they would ever let this fail and go bankrupt this early after opening so many mall shops and investing all of this money. I'll buy and take my chances that this thing turns around in a year or two. Hopefully those of us who stuck around and kept adding will look back on this in shock that we were able to pick up shares at this price.
Even AMZN went from $85.06 in Nov 1999 to $5.97 in Sept 2001 before finally taking off again in 2003+. The decline happened well before 9/11, and I believe that was all after their 3 stock splits. That would have been Amazon losing 93% of its value in that time frame.
States are continually legalizing mj and CBD I believe will catch on big time. Once the FDA chills out a bit, this could be an amazing buy 4 or 5 years down the road.
OR, they could decide to pull the plug this year or next lol who knows.
Yeah I agree, and I just keep leaning on the fact that they are barely a year into this and have just finally gotten all of their mall shops opened up. These managers have run successful businesses in the past, so I think they know what they are doing and how to move product and sell to consumers. It was just so damn expensive to expand like they did. If they become even close to profitable by next Spring and open a few more dispensaries throughout the year, I think it will be considered a pretty successful year, and hopefully the share price will follow and move back up. This is definitely scary though.
Interesting... Majority of the pot sector is getting slammed today, except GGB. This stock never seems to move logically based on good/bad news or sector movement. Drives me nuts trying to figure this one out. How has it been this low for this long?! I'll just keep adding, but I wonder if this just isn't well known yet, or if a lot of big time investors are just waiting on the sidelines still.
EXPOSURE!
Green Growth Brands To Speak At Premier Retail Industry Event
BY PR Newswire
— 8:00 AM ET 01/09/2020
CMO, Jann Parish, is speaking at NRF 2020 Vision: Retail's Big Show
COLUMBUS, OH, Jan. 9, 2020 /PRNewswire/ - Green Growth Brands Inc. (GGB or the Company) (CSE: GGB) is pleased to announce Jann Parish, Chief Marketing Officer, will be speaking at NRF 2020 Vision: Retail's Big Show in New York City from January 12-14, 2020.
Parish will be speaking on Sunday, January 12 at 2:00 PM ET on a panel entitled, "Disruption: Rapid growth of CBD products impacting big box, digital, specialty and department stores". Parish will be speaking alongside The Vitamin Shoppe CEO, Sharon Leite and GfK Consumer Life Senior Consultant Rachel Bonsignore. The discussion will be moderated by Stephanie Wissink, Jefferies Consumer Research Managing Director. The panel will discuss how the new category is integrating through all retail touchpoints.
"NRF is a hugely influential organization. For CBD to be included in the dialogue at the Big Show says so much about the strides the industry has made in destigmatizing cannabis and creating consumer-friendly brands and products," said Parish. "We are really honored to be sharing our perspective at the event among the most innovative retailers in the world."
Among the 40,000 attendees from over 100 countries, there will be 16,000 retailers from companies including Sephora, Poshmark, Walmart, Nordstrom and goop.
A short squeeze would be nice right about now on this one... At least enough to get it moving back into the 1s. This share price has got to be under valuing this company right now, even with the messy financials. They do need to open some more dispensaries, but they have a huge retail presence now across the country. From here, it should just be creating awareness and building the brands.
https://www.marketwatch.com/story/shorting-cannabis-stocks-was-a-billion-dollar-idea-in-2019-2020-01-03?mod=mw_quote_news
Interesting about the short selling in the sector... Hopefully this doesn't last too much longer.
I honestly haven't agreed with anything you have said until the salary comment. I was just looking at that...
Horvath - $828,827.42 salary plus $441,150.52 bonus and $25,781.58 "other" compensation = $1,295,759.52 for 2019
Logan - $201,414.13
Whitaker - $279,576.06
Galitsky - $80,000.00
Moore - $328,034.03
Posner - $105,876.12
Stoute - $16,543.14
Lehmann - $16,543.14
That's $2,323,746.14 in director salaries alone for 2019 for a struggling start-up company. wtf
On the plus side, all of these individuals own tons of shares, so they have a dog in the fight and are motivated to get the share price up I suppose.
https://www.marketwatch.com/press-release/green-growth-brands-connects-with-consumers-during-holiday-season-2020-01-07-820200?mod=mw_quote_news
This looks like it could be a pretty big quarter :) $30m+?
Nice couple of days to end the week... Hopefully this keeps going next week
Also, if we were just strictly looking at revenue and financial statements, this company is nowhere near being profitable yet, even with the increased revenue. It would appear at the moment that they don't even have enough cash and receivables to cover their debt in the short term (1 year). We all think we know what this can turn into, but until they get their name out there and get sales up drastically, big money traders can and will move this stock wherever they want apparently.
So, potentially a silver lining here is, IF they do not go bankrupt and the stock essentially becomes worthless, and IF they can work their way to profitability within the next couple of years, then the share price will certainly follow. That would mean that shares at this price will certainly triple or quadruple.
I'd like to think the billionaire family backing this thing won't let it die this quickly before seeing their entire plan come to fruition, so my stubborn ass is going to see this through whether it takes another year or two, or five.
Also, the executives own large amounts of shares, so they are sure to be fully intent and focused on turning this around.
What in the actual hell is happening to this thing today?!?! My Goodness
It just baffles me how other companies in the sector are posting big losses and issuing convertible debt/diluting shares and are blowing through cash, but the stock valuations are still staying somewhat higher relative to revenue for those companies than this. Is there something being missed with GGBXF? On the surface, $0.80 for this potential looks like a steal.
Big selling today... getting a bit nervous now. I never thought I'd see it this low.
So, I just received my first order from seventh sense... I got a hand cream and foot cream that were on sale for $5 and $10 for the girlfriend to try out. I'll be honest, I was impressed with the packaging. They have their own nice boxes, and it came with free samples of a few of their other products. I just ordered the 1000mg vanilla CBD bliss drops today... $65 but $10 off for cyber Monday. I can't wait to try this stuff. My girlfriend has anxiety problems at times, so this just might do the trick for someone like that.
Their revenue this quarter should be HUGE
This is actually true more than likely... Someone asked about Organigram on Mad Money, and Cramer basically said he wouldn't invest in any pot stocks until Canopy hits bottom. I'm sure there are a lot of investors just waiting on the sidelines looking for the signs to jump into all of these companies.
The revenue increasing is huge, though. As long as that trend continues, 2020 should be a much better year for the entire sector, and especially GGB.
Yeah I just read this... Solid revenue growth this quarter. Still have significant debt and liabilities, but that should work itself out hopefully with continued growth in revenue all of next year. They will go to the next level once they start opening the dispensaries in Florida, etc.
I know, it's highly frustrating. On such a good day for the whole sector, this is still only up less than a dime. It was beaten down so much, it's going to be a steep uphill climb it feels like. Solid revenue #s are the only thing that are going to save this thing.
It's good that the house passed a bill trying to lift the federal ban on mj, but somehow I feel like even if they do legalize at the federal level, most of the big time money will be going to the big boys in the sector anyways... CGC, ACB, TLRY, APHA, Cron, CURLF, etc.
https://www.marketwatch.com/story/cannabis-companies-rally-for-a-second-day-ahead-of-historic-vote-that-would-lift-federal-ban-on-weed-2019-11-20?mod=mw_latestnews
I just keep telling myself this was meant to be a longer term investment anyways, but it's hard to see this sinking day after day and maintain hope. Serious doubt and nervousness is creeping in. Is anyone adding shares consistently? It feels like that's all I can do is to just keep adding and lowering my average little bit by little and pray that this bounces back.
Didn't they need to keep this stock around $2.07 for some reason?
Curious as to how low this thing can really go... My goodness. I'm not in the greatest shape, but I imagine some people would need this thing to multiply 4-5 times to get their money back. Does anyone have realistic thoughts or expectations about where they want/need this stock to be to feel good?
On a positive note, I've been able to add throughout this sell off in the MJ sector, and I'll continue to do so below $2 and hope it takes off at some point. I've averaged down to $2.83, and hopefully I'll be able to get that average down to the mid $2s in the near future. If I could have originally bought this in the mid $2s knowing what this company can be in the next few years, I'd still do that all day long.
So for the sake of this board, rather than discussing that irrelevant topic, we should be a bit concerned about the fact that they are needing to issue even more debt for general working capital. The cash situation is not the greatest right now. Hopefully they can open all the shops that were planned to be opened and focus all of next year on making this thing profitable/cleaning up the balance sheet.
A bond is actually a synonym of the word debenture if you look it up lmao
Looks like a secured convertible debenture works the same as a bond, just with the option to convert to shares... sav79, you are a troll.
What Is a Convertible Debenture?
A convertible debenture is a type of long-term debt issued by a company that can be converted into stock after a specified period. Convertible debentures are usually unsecured bonds or loans meaning that there is no underlying collateral connected to the debt.
These long-term debt securities pay interest returns to the bondholder, who is the lender. The unique feature of convertible debentures is that they are convertible into stock at specified times. This feature gives the bondholder some security that may offset some of the risk involved with investing in unsecured debt.
Convertible Debentures Explained
Typically, companies raise capital by issuing debt, in the form of bonds, or equity, in the form of shares of stock. Some companies may use more debt than equity to raise capital to fund operations or vice versa.
A convertible debenture is a hybrid financial debt product with benefits of both debt and equity. Companies use convertible debentures as fixed-rate loans, paying the bondholder fixed interest payments. Bondholders of the convertible debenture also have the option of holding the loan product until maturity—at which point they receive the return of principal—or of converting into stock shares at a stated date. The loan can only be converted into stock after at a predetermined time as specified in the bond's offering.
A convertible debenture will usually return a lower interest rate since the debt holder has the option to convert the loan to stock. Investors are willing to accept a lower rate of interest in exchange for the embedded option to convert to common shares. Convertible debentures allow investors to participate in share price appreciation once the debentures are converted into stock.
The number of shares a bondholder receives for each debenture is determined at the time of issue based on a conversion ratio. For example, the company might distribute 10 shares of stock for each debenture with a face value of $1,000, which is a 10:1 conversion ratio.
The convertible debt feature is factored into the calculation of the diluted per-share metrics of the stock. The conversion will increase the share count—number of shares available—and reduces metrics such as earnings per share (EPS).
Another risk of the unsecured debentures is that in the case of bankruptcy and liquidation they receive payment after other fixed-income holders.
Key Takeaways
A convertible debenture is a type of long-term debt issued by a company that has a stock conversion option.
Debentures are unsecured by any underlying collateral.
Convertible debentures are hybrid products that try to strike a balance between debt and equity.
Investors gain the benefit of fixed interest payments while also having the option to convert the loan to equity if the stock price rises over time.
I still think there's potential here, but unfortunately I think all of the mj stock pumping had already happened across the board for the most part, and the stocks were selling at a much higher valuation than what any of these companies should have been valued at at this point in their life span. Hindsight is 20/20, but damn I should have known better and waited. Congrats to the new investors that waited for stock prices to dive 60%-70% in this sector.
Still holding, but I'll be getting pretty nervous if this thing doesn't gain any momentum after the next earning's release. I know they are backed by a wealthy family, but wow that's a lot of debt and losses on the books.
Could have been much worse today after weaker revenue than I hoped for. The selling started early but it bounced back nicely. I'll be excited to see their progress over the next few quarters. They really need to hit a big number the next two quarters ending Sept & Dec to make the stock jump back up towards the 2s imo. Feb reporting should be interesting to see holiday revenue for all 200 shops.
glta
I'm in the same boat man... Avg about $2.95. Kicking myself for not having a little more patience, but I went all in when it dipped down in the 2s back in May thinking it would jump back up to $4. I've since been able to add about 500+ shares on its way down, but unfortunately the bills need paid lol
8 more days like today and it's back to $4 lmao nice to see a bit of a rebound though, $0.85 to $1.14. Hopefully this has momentum behind it for a change.
I can't wait to see the revenue numbers from this holiday season once all of these stores are opened up. With an increased percentage of repeat customers over the next year and clearing off some of the initial 1 time debt off the books from opening these shops, holiday season 2020 will be HUGE and hopefully in the black. :)
Well, at least they'll be releasing earnings in October AND November for consecutive quarters. Hope to God that provides some much needed positive publicity and attention to this company.
Any little run it makes, it just drops right back down lol like someone is determined to keep this thing low... Whole sector got hammered again today though, so I guess it's good this didn't drop another 6%+
I'll be honest, I never thought it would get THIS low. Still holding until I make my money back, but looking like it could be a while. I do believe in what this company is doing and think it can be big, but maybe we all jumped the gun on this one. Disappointing.