Replies to post #15122 on Medicine Man Technologies Inc (SHWZ)

[damAcon1]

So many thoughts on this subject, based on information heard across podcasts, but I held off until I could locate some of the sound bites to backup my comment. Unfortunately, I wasnt able to get them all...but I now have a notebook next to me so I will try to jot down reference points for the future.

First: In agreement with Knife's comment. Key Investment Partners - Scott Jordan Sept 15th podcast, at the 14:27 mark: "The top 15 to 20 companies are only properly bankable. If you look at the numbers Viridian put out only 5 of the top 10 show a net profit. Other companies have shown EBITDA positive, but banks dont loan on EBITDA positive, they want to make sure that you are able to make a profit." For SHWZ to receive an approval for a loan that is above their OTCMarkets page market cap is incredible.

Second: The rate displayed is not always the 'true' rate. There could be an extra 3%-4% on top of the posted amount for (and I could not find the podcast for the exact term used...but essentially) administration fees related to gray market operations/services. Personally, I wonder if SHWZ is revealing the true value of their percent whereas Curaleaf is only revealing the posted interest rate (without any behind-the-scenes extras). I only really mention this because Curaleaf is still reporting in IFRS, and not GAAP accounting. Side note: This annoys me...and I consider it 'shady' behavior. First of all, I wonder just how 'Top MSO' the company would be if it had to report in GAAP. But in addition to that, for a company who has one of the most vocal mouthpieces in the US industry...to spend all 2021 hyping up US federal legalization and interstate commerce...the continued company's operations dont match the speak. The company is not ready for uplisting and the company is still approaching the market treating the forever US landscape as State run, and not federal, with limited licensing.

Third: Key Investment Partners - Scott Jordan Sept 15th podcast, at the 21.06 mark: "Many times speed is one of the important factors." The speed of the close could also dictate the interest rate. Maybe Curaleaf has been working on this funding for some time and was willing to wait for a lower rate whereas SHWZ saw an opportunity, and instead of waiting accepted a higher interest so it could move forward with the deal.

[Future2016]

I am in line with your estimates but I am curious to see how the debt take-on affects the profitability. I also think it's the first quarter with a large output from SCG because I think their outdoor crop was completed in October. It may not be much, but it could be enough to offset their debt fees. They didn't have that luxury when they reported Q4 2019. It is also possible that SCG doesn't count toward SHWZ numbers in 2021 because Nancy said bulk cannabis like that is pre-planned out in purchasing. However, cannabis I think is paid for on or after delivery. I'm also really curious to see what NM is going to do for the quarterly numbers.