Hi All,
I feel like a lot of you misunderstood the company and simply just want the share price to go up. Let me explain in a few points:
1. Institution Investor - institution investor cannot invest in NGW not because of the share price being under $1. There are multiple reason - 1) canabis is still Sch.1 drug at the fed level therefore most investment policies prohibit investment in that area unless you're in Canada of course, 2) SAFE Act and MORE Act are the next catalyst that will need to get approved by the Senate. They were approved by Congress,3) depending on the fund, most reputable fund cannot invest in over the counter stock or penny stock because financial reporting for OTC market is not strict enough since company are not required to report every quarter.
Therefore, NGW can attract big investor interest by getting bigger and enough to get up listed to a major exchange such as TSX and NYSE. To do that, you need to have a certain market cap and have a PPS of over $1. Some hint, all big major canabis companies were once traded on OTC. When we are big enough, up listing to major exchange will significantly boost volume and attract new kind of investors.
2. Management - based on the reading in this forum, I think some of us dont understand how options grant work. The new management dont just get stock, they get the right to buy stock at certain price - in the recent case the exercise price is at .35 CAD. The fund go to the company.
On management compensation - I dont agree that they are getting too much.i think might get around 200K a year.
And to someone question about how much share management hold. Its about 50 million share which is around 30% of outstanding shares. Mike alone hold 30 million shares.
3. Share Price - someone kept saying that $20m in Rev a year is not big enough to get attention. I'd suggest that you go check all big comparable canabis companies and you will understand which stage of cmgrowth we are at. And I dont care too much about PR guys, let management build the company foundation. They are on the right track.
In my opinion, our valuation should be at the IPO valuation right now - which is at $120 million.
To close, the expansion is a great milestone. But our real catalyst here are the approval of the SAFE and MORE acts by Senate next year.
A bit about me - I'm an engineer who structure contract and terms for mega rail transit project in North America. And, I have held NGW since Oct 2018. A few of us would understand that journey :)
Cheers,
