Thanks "DS CPA" for the detailed DD. I would like to say, "go on"; I can soak up all of the DD you are willing to share.
One point so many investors overlook about the extraction business in general is that there are going to be many more non-public companies getting into the business than there are public companies.
That's going to allow for the phone to ring off the hook with buyers who have what they think are "better ideas" or "better products". What they all need is the essential ingredient that only the extraction companies can provide.
Extraction companies provide essential products much like the public water utility provides essential water to a community and is always guaranteed a profit. That's why their dividends are so secure, as are their municipal bonds.
Now NEPT will never be guaranteed a profit, but they provide an essential service / product that the rest of the cannabis industry needs for part of the overall brand portfolio. Moreover, few companies got into this end of the business. Most just wanted to grow the most amount of weed.
Extraction is just "so-not-sexy-at-all", and the PPS's will never fly like some of the other high flying notable high market cap companies, but their steady stream of revenues from long term contracts will sustain steady PPS growth based on solid GAAP black fundamentals. Extractors will be profitable a long time before the giant cannabis names.
Here is an example of steady revenue:
Neptune Signs Multi-Year Extraction Agreement for 230,000 kg Including Turnkey Solutions with The Green Organic Dutchman
Regarding the private placement, you have to love this move:
"John Moretz, Chairman of the Board, and Michael Cammarata, President and CEO of Neptune, invested US$5.0 million in the aggregate as part of this ..." US$41 Million Private Placement. That's commitment and putting your money where your mouth is.
Thanks for sharing the folling DS CPA. Please feel free to add to it. I promise I won't get bored :-)