Private placement investors don't have an expectation for an immediate ROI. And how could those investors (or any of us for that matter) have predicted the 80-90% downturn in the sector? So, the argument is misleading because it totally ignores the overall performance of the sector.
Those who understand private investing know that expectation is for the investment to support immediate growth of the business, so the share price can appreciate later.
This is why they invested, per the recent PR:
"2019 was a growth-oriented year for Canbiola as we invested heavily back into the Company," said CEO, Marco Alfonsi. "I am very pleased with the significant progress we’ve made over the past year. Our year-over-year top-line growth was significant"
Although it has not been filed, Alfonsi knows what the 2019 revenues are. Why would he say Year over Year growth was significant if it wasn't?
Another tell for the upcoming filings:
"directing more resources to our Duramed Medical Device division, which has been far outperforming projections and poised for a break out year in 2020. These efforts will allow Canbiola to have strong organic growth, achieve profitability, and increase cash flow."
We will know soon, and the reverse split will be long forgotten. New investors coming in won't even care.
Canb went up 50% last week on more than double volume (others in the CBD space also did quite well) on news regarding MJ sales and legalization. This definitly demonstrates that what is soon to be a $20+ billion industry is certainly not dead.
Investors flock to triple digit growth, and that's what we are going to have with Canb.
