This is good news, they have finalized the lease and are on track with build out!
Management knows how to use it's capital wisely - contracting with growers as opposed to sinking capital into purchasing farms; leasing a brick and mortar as opposed to purchase.
They are maintaining their relationship with their growers, establishing new ones in the states for future expansion.
Expenditures when needed, not in anticipation of growth is a wise course of action to follow; any additional expansion will be easily handled using this strategy. This falls into step with current sentiment that the MJ & CBD sectors need to begin showing profits for investments made (The Street last week). Serious investors will begin holding companies accountable to perform; I see a shift occurring in the next few months to better, long term holdings, CVSI will be one of the few which will be profitable not only because of growth, but wise use of resources. Last quarter CVSI posted payout for Mr. Mona's departure, I don't expect to see a $9M expense on the books for unexpected costs for Q2; nor an additional issuance of shares in this matter. I do expect to see his departure shares posted in FY19Q2 financials, so we should see roughly 110M outstanding shares.
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