Replies to post #19806 on Medicine Man Technologies Inc (SHWZ)

[Future2016]

They literally gave 4 different ways to use the money.

[In Plain Sight]

Couple of points discussed here. Reread the call transcript. Respectfully disagree on refi as a current option or suggested as an option. Also, I don't see this as the time to add shares while the stock is low per DamAcon1? How would that be beneficial and perhaps be guaranteeing a true penny stock by being further dilutive? I think that as an option is an avoidable self-inflicted wound. Am ready to hear the argument for, but oh, my I hate the idea as an existing shareholder. As follows, I can't find where anyone following the CFO's comments disagreed with the use and allocation of cash generation. The options as listed and discussed, as I found listed several times by the principal speakers, were confined to:

debt service
product development
wholesale ops of same (products/cultivation as req)
expanded retail ops
M&A activity that adds new markets such as an opportunity to lead in a new state or where they are not now in CO and NM.

From the call re "refinancing" (using MS Word) the word appears once "financing" appears twice, both herein:

Unidentified Analyst

Thank you. And Forrest, how about a comment on your debt position right now?

Forrest Hoffmaster

Yes, strong balance sheet, debt-to-equity ratio is 1.4, debt-to-EBITDA is 1.7. Again, mention liquidity we're strong on liquidity and working capital, generating operating cash from operations. We're very aware of our interest and principle obligations in the out year, and our intention is to improve cash position, deploy it wisely to continue to meet those debt obligations.

Unidentified Analyst

Thank you. Just one more question here regarding refinancing possibilities for your debt. Will you be using positive cash flow generation to be paying off some of the debt to lower the large payments due in 2025?

Forrest Hoffmaster

Yes, that's our plan. Right now as we all know, not necessarily the environment to go to the market and look for financing. So, our whole focus right now is generating free cash flow from operations and making sure we're satisfying our obligations. (emphasis added)