You sir are 100% correct in both your points 1 and 2.
Both myself and my friend have been in Titan since day 1 - in fact sort of before day 1 as we participated in the PP before it went public. So that being said it went public in June of 2008 and we both lightened up our positions in March / April /May. We really turned on harder selling around April/May and were probably even a little responsible for driving the price down through the $1.50 range (I am talking CAN - it's now about $1.35 now).
Management could potentially be the worst management team for a public market company I have ever seen. They care ZERO about shareholders in my opinion (and by my opinion I mean both mine and my friends - who even after selling a substantial position probably still might be one of the largest retail shareholders of Titan) and don't deserve our money.
Hargrove only cares about the project and has no idea how to run a public company with shareholders. He should be president only and they should hire a proper CEO who knows both capital markets and public markets. Rayman should be COO. Nice guy but cannot make a decision. Talk to him and it's always "yes" to everything. Give him ideas or constructive criticism and you get agreement and then no follow up.
As shareholders they have F_ _KED us.
Positives are that they have an amazing product. More negatives are they screwed the shareholders in that if they were to have a product today the most on average a company would pay for this company would be a double. Let's be real positive and say a triple. Wow, after all the money these guys have raised $4.00?????
They have killed this. Just because you get the FDA does not mean your market cap jumps to $2 or $3 billion over night.
Anyway, they are doing a great job on the product but you will never get what we really should be getting if they focussed on treating shareholders properly.
I hope they have a real plan for funding as they are out of money by my calculations by December. This was based on how much cash they had in the bank when we were at the AGM and what their burn is.
I have no idea what is in store for us shareholders but they will need money.
If management had spent time talking to shareholders sad promoting the Titan story their share price would be higher. They did none of that - at least in Canada. Why do I mention Canada? Because that's where all their financing were done. No real significant US institutions stepped in so you need to keep your shareholders happy - which they have not done as reflected by the price.
So all that being said Titan management had the bull by the horns and blew it. If they had treated shareholders with respect and promoted even a little bit they might have a higher share price and the warrants would be exercised. Where are we now? First set soon to expire worthless. All managements fault. They should resign with their heads hung in shame. Note: Fowler is not included in this mess. He has nothing to do with it.
FYI, Randall is amazing. He gets it but his hands are tied. They also need to get rid of dead wood directors too. All just my opinion.
To answer the second part of your question, yes I / we took lots if money and invested it into some other deals. I will discuss a couple very briefly.
One deal will be listed in the next 30-45 days or on the US market - the QX like Titan is currently. It's called Golden Leaf Holdings and the symbol in Canada is GLH. It's by far the best marijuana play on both sides of the border (Cabada and US).
The company is operating in Oregon and is the largest producer of oils and edibles. Correctly they have revenue in the range of $1.2 million per month and they are capacity constrained - until now. Last month they had 2 new machines come on stream, this month another 2 and next month another 2. This will more than double their revenues to over US $25 million per year. They are actually shooting for $60 million.
Margins with purchasing their trim are 40% however they have their own facility coming on stream where they expect to be able to grow enough trim (not including the flower) to satisfy almost whatever their machines can produce drive the margins to 80% or higher.
The company is run by one of the best CEO's I have met so far - formerly CEO of Mars Canada (Mars as in Mars Bar) as well as Cara Foods which just has a very successful IPO and Don Robinson retired from Cara in December 2013 before becoming bored again.
If you compare GLH to the current market leader in Canada Canopy Growth Corporation - CGC who has a market cap around $200 million, losses money each quarter and has revenue in the $600,000 range for the quarter, Golden Leaf Holding becomes a no brainer. It's got 62 million shares outstanding and closed at CAN $1.34 on Friday. This should have at least the same market cap as CGC. Lastly, they have shareholder friendly management unlike TMD. Both my friend and I got in the pre-public round last August when it had almost no revenue and we have been on the open market at these levels. Last purchase was as high as $1.25 for full disclosure.
I will be publishing a lot on this company and if anyone wants some info please feel free to inbox me direct.
The other company we invested in heavily and are down on it but not even concerned a bit is a company Distinct Infrastructure Group. This will do exceptionally well given the Liberal Government has just gotten into power in Canada and will be spending billions on infrastructure.
They have about $33 million in revenue and I expect to see closer to $100 million in the next 12 months or less through organic growth and acquisitions.
This might be less attractive to the US investors on this board as they will not be getting a US listing. They trade under the symbol DUG.
There are a few more investments that have worked out better than holding Titan so I have no regrets. FYI I /we still hold a substantial position and are trying to decide on what to do.
If they do a financing which they will need sooner than later it will most certainly have some type of a discount to the market - probably 10% to 25% on the high side. This will drive the price down again.
Anyway, sorry for being long winded but I say it as it is.
Still a little long but NOT as strong
Point
