First Draft. Comments welcome. I will attach my name and contact information on the one sent to Mike but for security reasons, decline to do so on this forum.
Comments from the board are welcomed.
Mr. Jennings:
I have been asked to act as the voice for a group of investors in NGW who’s holdings in the company have an aggregate total of many millions of shares.
Before voicing any concerns however I must mention how impressed we are all with the company’s execution of the business plan. From an operational standpoint, the company appears to be executing almost flawlessly and when operational decisions have been shown to not be the best possible interests of the company, the company has been quick to jettison those relationships and plot course corrections which are much more lucrative to the company. Collectively, we applaud NGW on what they have achieved. Attaining cash-flow-positive status and having achieved profitability in an industry where almost all are hemorrhaging cash is incredibly impressive. The company is to be commended for this achievement which eludes so many others in the sector.
So, while on one hand we extend huge congratulations on a job well done with respect to the operations side of the company, we do have some concerns with the company’s ability to aggressively distribute the news of those successes to the investing public. Most companies, especially young, small-cap, growth companies rely heavily on news. Consistent distribution of news can attract new investors, New investors can elevate the trading price of that company’s shares. Obviously, as investors, we all have a vested interest in seeing the price per share escalate…………..but so too does the company itself.
It is fully expected that at some point, the company will need to raise capital in order to fund expansion into new facilities, to finance build-out at the Coalinga campus and to lease existing facilities and retrofit them into viable grow facilities. As investors we assume that this funding will be obtained in whole or in part by issuance of new shares. The price per share becomes crucial far beyond a return on investment for existing shareholders. Simply put, the higher the PPS, the less dilution will be required in order to raise the necessary capital.
It is totally understood that the company has been focusing on producing the finest cannabis products available at any price and in that regard you have been immensely successful. Nothing herein is meant to detract from that, but there are times when the lack of press releases from the company are deafening.
We are all huge, huge believers in NGW. You have achieved what few others have and you have done so in a very short time. But we respectfully ask that more effort be put into a consistent and more extensive and thorough P/R department.
Lastly, we fully admit that the day-to-day issues you must wrestle with are beyond our understanding. But the company drastically needs a champion who unashamedly promotes the amazing story which is NGW and aggressively tells that story to all who will listen.
