Easy! No pre-approval, max capacity of 80,000sqft, and they'll begin working in a 20,000sqft space. In my opinion they are too small! Look at the expansion potential that the major LPs have right now....
They're getting $900k to set up a facility which is nowhere close to the magnitude of Supreme. As The Free Nebula mentioned a while back: nothing comes for free.
We don't know how the financing deal is going to work here, but even after we raise that 5 million our O/S will sill be under 80 million, very shy compared to our old O/S....So I don't really consider that to be "massive" dilution. For a group of gold miners and oil and gas junkies I am pretty impressed with the way they've entered this sector, especially juxtaposed to their competitors coming from a similar position....
Without the R/S we'd be adding another 50million odd shares to the O/S and we'd still have a low share price such that any institutional interest would be non-existent, especially with over 400 million shares outstanding...
Nobody is a fan of losing shares, but the R/S will, IMO, prove to be a good thing after MMPR is released...
Big news to come, IMO. This stock doesn't work like the 'stinky pinky' micropennies. And keep in mind that these guys used to trade on the TSX, a reputable exchange up here, but there are more people playing the MMJ stocks on CNSX.... And it's interesting to watch the nature of both SL and SPRWD, volume traded, fluctuations, etc. If you'd like to feel a bit better about things you should take a look at the Canadian ticker ;) lol...
