CITATION IS LIHT FOR BANKRUPTCY IN 2020!
The MD&A report from July 26th is hilarious! No license in Canada (never gonna get it, never gonna get it), no more revenue from California (was solely acquired for purposes of pumping stock), and still almost no sales from Nevada!
Straight from the report...
Divesting of it's only revenue producing asset
The Company, through 420 Express Delivery dba Green Leaf Wellness (“Green Leaf”), is operating a dispensary in Desert Hot Springs, California which currently holds a temporary adult use and medical retail license. On March 5, 2019, the Company signed a letter of intent (the “LOI”) with respect to a proposed acquisition by Cannabis One Holdings Inc. (“Cannabis One”) of 51% of the Company’s interest in Green leaf. Under the LOI, Cannabis One will carry out a rebranding of the dispensary under Cannabis One's The JointTM banner, and has a right of first refusal to purchase the remaining 49% of Green Leaf. Closing of the transaction is subject to among other things, Green Leaf’s receipt of an operating retail license.
As a result of the LOI, the assets and liabilities of Green Leaf were classified as a disposal group, and as at March 31, 2019, the assets and liabilities of Green Leaf were reclassified to assets held for sale.
No revenue stream but look at the increase in all the "fees", which is just a fancy way of saying "we're stealing your money."
The increase in consulting fees was primarily due to consulting agreements entered into by the Company with certain investors who participated on the May 18, 2018 and June 11, 2018 private placements related to capital markets, M&As and other advisory services. The Company paid fees of $3,535 and $8,170 during the three
and twelve months ended March 31, 2019, respectively, related to these agreements. (See “Contingencies”) In addition, during the three and twelve months ended March 31, 2019, the Company issued an aggregate of
4.7 million shares at a fair value of $1,697 pursuant to consulting agreements and 1.5 million shares at a fair value of $405 in settlement of a contract with a former director of the Company.
Shareholder and investor relations increased by $725 and $384 during the three and twelve months ended March 31, 2019, respectively, as a result of the increase in investor relations activities primarily related to
private placements and acquisitions completed during the year.
Management fees and wages increased by $202 and $239 during the three and twelve months ended March 31, 2019 as a result of the appointment of a new CEO and the increase in management team from two during
the year ended March 31, 2018 to a total of four during the year ended March 31, 2019. See “Management Changes”
