That's not exactly the case....
Their largest acquisition valued dispensary locations at $26MM each, with some of those being rented strip mall locations with very poor performance, and about $2k in furnishings. I have a post or over there with direct links (of exterior and interior pics).
The industry as a whole during 2018 has also seen more successful dispensaries falling not only in that range, but as high as $58MM(each) by other publicly traded companies.
DP I believe holds options in (I believe) the $6-7MM range, but as stated before, the premium alone is worth (this second) many times what this is currently trading at. (Example: 3 options for 21MM total. At a very reasonable price of $10MM each ($30MM) those options carry an automatic $9MM premium. Not sure O/S, but even at $9MM many times greater than currently trading at.
I'll pay the entire amount currently trading at right now to control the 3 for $7MM each. (I know I could flip them all for $15MM each immediately ;)
$1MM outlay to control 3/$45MM? Done deal. Where do I send the check? ;) LOL
Figure should be OS divide by premium (9MM). ($0.36?)
(Entire value should not be used as that would be additional payment) Value as is (premium on options) is indeed a value that exists this second)
25MM OS at $9MM premium is $0.36 a share.(And that is based on $7MM option and $10MM valuation which may very well be a little on the low end given the brand and what it is, and represents.....)
An ever greater value would be hot spot locations (Las Vegas, New York, Chicago, Miami, Socal) which would create a cumulative value much greater than $10MM each.
Could easily see a $20MM (+) valuation for the locations above (each)...
Not a bad deal when $1.5MM to establish the locations ;)...(more or less....) I/we have one location that cost about $900k to get it running about 18 months ago and just passed on a $15MM offer recently.
I think OS by $9MM is fairly reasonable and accurate value. (Even $3MM/$1MM per location premium is several times current)
It's too personal to be business.
