Cannabis Strategic Ventures (NUGS)

[miestro]

The good the bad and the ugly

The good: Seems Yu has enough capital to keep things running for a while. Sales continue to improve. Cutting dead weight and moving forward. With the costs of the farm, they should be able to make an overall large profit from it.

The bad: Another $1.5mil in liability. Not much transparency in the #'s at the farm. Seems that could be being operated and managed better than it currently is. I believe in the Q it says they are still in the process of finding a good management team for it? This makes it seem like he is trying to run it himself, and just doing what he can with private contractors instead of maximizing it's full potential.

The ugly: The AS is pretty much absorbed by the execs in their preferred shares. Seems as though they can convert preferreds to commons at will? If any of them exhausted all their preferreds the OS is going to go through the roof. 30% sales bonuses when carrying $1.5mil in liability to the holders tastes a bit sour to me.

Seems as though they could be a great company. But must find a way to manage things better. If they really care about creating stockholder value they need to go cheap on spendings a few Q's and show that they actually can begin to reduce the deficit. Can't finally begin to make $3mil+ a Q and keep adding to the deficit and expect a ton of investor confidence from it.

Open to thoughts.