Dragon's Corner

[dragon52]

Pros and Cons...

Looking at potential of CDIX and DGCD.


The problem with CDIX is having a lot of baggage to get rid of by selling off their other businesses. Having debentures to sell down or get rid off= totally. On the positive side, selling their entities lessens liabilities and debt. It bring the company down to two entities... their Tax off shoot and Arcela, making it easier for Arcela to take on a new name and symbol, something it does not have but is desired. This slow boat to China route is long but shorter than if Arcel were to go alone and try to jump all the hurdles. In other words, the only reason this is not considered a "R/M" is because neither is a shell and are cleaned.

With DGCD it is quite the opposite. GRN Funds picks up DGCD and is doing a R/M. Technically, at this point it is the same as CDIX having a division called Arcela.

DGCD has been cleaned out and management changed new name applied for. CUSIP change, might take a bit... and imo there is no rush. It might be another month before that is done... or it could be as fast as mid-Sept. But it will be done eventually. So what changes should the new ticker take effect and a name is assigned. Absolutely nothing. Why? Because they have no product or service. Buyers are buying air on the premise that it will merge with something down the road. But, it will bring value with a low float and a clean shell.

DGCD will want to merge with a company that is bringing in revenue, that is operational and has assets.

What would be interesting is if GRNH (GRN Holding) picks a Private Company like what CDIX is doing with Arcela.

GRNH would not have that problem and could merge with a private company taking them public and creating value.

There will come a point when DGCD aka GRNH is put on hold. Nothing will happen. Until they find acquisition targets. Profit taking will occur since the ride was nice and long considering Booming from .002 to over $1.00 then back down, now going back up... until the float is gone. But then what?

I see CDIX in the same process but taking a little bit longer to ride up. Come Tuesday, we will know the fate of the deal, which imo is already done. Now the formalities... 8K and CC coming up.

https://acelacbd.com/faqs/

https://maysville-online.com/news/165654/acela-cbd-to-have-open-house-for-its-hemp-business

Okay, so what else...

What I see is CDIX selling or reducing their holdings and keeping their Tax division. It will become useful down the road.

The merger will be complete with Arcela becoming part of the CDIX fold.
Once CDIX reaches their goal of what they want to have remaining and where they are, CDIX already having ties with Arcela will have a management change, with Arcela taking the lead and just a name change would be needed, no CUSIP change since everything would be under one roof. By then, clean with no old debts or debentures, notes to pay.

Should be a smooth transition to do this.

Arcela projects with what they already have, $30 Mil - $90 Mil in revs; they have 138 Farms, 2 million plants, 300 acres... You get the point... It is already operational and making money. They are a cradle to grave company, which makes them stand alone. A complete package.

Whereas, DGCD will have to start looking for an income generator and producer.

Any opinions welcome?