Chalice Brands Ltd (CHALF)

[Marillionaire]

One of the reasons it’s trading low compared to peers is because of previous balance sheet issues but management has done a great job turning this around the past year, according to the last earnings call they’re cash flow positive (from operations) and were EBITA positive the last month of the previous quarter. That’s quite a dramatic turnaround and one for the reasons I think it’s very under valued. The underlying business is solid (Search: chalice farms Dispensory and the brand has significant room to grow. Any company thriving in Oregon’s saturated (and commoditized) market has been through the ringer and will be highly competitive as new markets open. Untested companies will struggle.

But hey, we’re all just a bunch of amateurs, only time will tell who the winners are. My advice to anyone is don’t invest money you aren’t willing to lose and if you like the underlying business the daily share price shouldn’t matter.

Edit: I should also add, the previous round of g had management contributing 20% on top of pay cuts (to help the company become profitable). If management is this confident it’s time to start paying attention.

Included in the Non-Brokered Offering were subscriptions from certain directors and officers, who were issued Units at a deemed issue price of C$0.05 in satisfaction of foregone 2020 compensation totaling C$404,528.