This is supposedly a hyper-growth company, it has been explained to me that is why the price/sales ratio is higher than almost every company listed on the Nasdaq. Yet if you read the last report, 3rd qtr. revenues were down 27% from than the average of the first two quarters, that tells me growth is slowing. And this was the quarter following the announcement of making 7.5 million products to meet "initial demand requirements."
Someone mentioned they meant 7.5 million to be the value in dollars, but if that is the case, why not correct the damn press release? They obviously were way off in estimating initial demand. And more importantly, they were off in estimating the impact of everybody and their mother getting into the CBD business.
The problem is the CBDU brand has no value. It is not listed anywhere on Google as a trusted brand, please show me if I am wrong. It is not on a list of Top CBD companies ranked by sales, trust, reputation, you name it. CBDmd, Charlotte's Web, Medterra, these are brands consumers know and trust (for now). The first two are market leaders and trading for less than EDXC on nearly every financial metric. Maybe one of you can explain to me why you are invested in EDXC when you could invest in these companies with brand cachet and CASH.
Cash is king, and EDXC has very little cash, savvy investors know this and they will be able to squeeze a ton of shares out of them for financing. This is why the stock is going down, the situation is getting worse by the day as the stock tumbles in anticipation of the massive dilution that will be needed. It is a death spiral.
Todd already pays most of his expenses in stock when he can. Wouldn't you love to have your own printing press? TyCobb mentioned that Dustin, who apparently is the next Steve Jobs, is becoming an owner of the company. No kidding, that he is because he is being paid mostly in stock!
Add to this fact you are in an industry under threat of an FDA ban. They will be more strict now that they got burned on vaping.
Now you have a long list of characters sitting on millions of shares hoping and praying for one more run to glory. But I doubt this dog will hunt anymore.
I've said all I am going to say. Truth is I am short so little in dollar terms at this point that it isn't even worth my time. I only wish they wouldn't require so much damn margin to hold the position.
Good luck to everyone, and never fall in love with a stock, especially a pink sheet stock. And always pay attention to the history of the people in charge.