Congrats to all today with the trading. Welcome to any new Investors.
Even though these are still early days it was great to finally see the stock stick its head above 0.01 and touch the Oppie Conv. price of 0.012 with a line wipe @0.012.
It was also good to see, in spite of some earlier attempts at retracing, that it was able to hold its price at 0.012 at COB and wasn't a major P & D, as some may have been predicting. I did notice that CGB was able to hold its ground at 100% up where others had MORE significant retraces today. Market support was positive for a good day's finish, I believe.
VALUE OF SHARES TRADED: $11.2ML. Has been a long time since we have seen those numbers.
THE C.R. ANN. (People are welcome to agree or disagree with me).
I think the announcement is a sensible step in the right direction at this critical phase of their development going into 2021, and before the CannTab delivery ann. This stock has been under a nuclear microscope, as many know, for almost 3 years now, which for any newcomers might help you understand some of the criticism/skepticism you see in posts over the past few days.
SENTIMENT
As mentioned above, even though this is only one day of positive trading, with the previous sentiment we have seen across SM, I don't think many people believed that the company could/would deliver tangible results after the horrible 12-month suspension period followed by the shorting of stock after their relisting in Aug. 2019; which eventually saw the price drop to 0.007 in March and stay there. CGB, formerly QBL, also faced investor pressure with these ongoing US-China-Australia Trade Wars which affected the Mining discussions with prospective Chinese offtake clients back in 2018. So the CannTab news, and the growing Food and Hemp Asia businesses, have certainly been a welcomed relief for many of CGB's shareholders, I believe. Today's ann/share price result is like a Vitamin shot. Very grateful!
WAITING FOR CANNTAB
As I remarked last week, it is good to see that they are actually ahead of schedule in the delivery of CannTab's patented hard pill pharmaceuticals, with respect to the normal 10 years Pharma development cycle. That should give the market and especially give the big end of town more confidence to invest in them, as we possibly saw today. The CR being fully taken up by Soph's and professional investors is a big confidence booster, for sure.
WIPING DEBT
Their decision to wipe their entire debt book at this time is a well-timed and clever business decision for management to make, IMO, and in spite of criticism of this recent TH on SM, it is evident today with over $11ML dollars of volume churned, that the market is also pleased with the actions taken by management.
Their timing to come back on today when Cannabis stocks are in the 2nd phase of the sentiment increase was a smart move. CGB can now move into 2021 debt-free and with a blank debt book to launch their CannTab pill formulations to market with a healthy bank book. It was pleasing to see that the CR was fully covered by Investors considering how close this was to the previous CR which was for Retailers and investors.
ANALYSING
Breaking it down CGB had a fairly high Debt to Equity Ratio (44%) before the Raise. Even though it was required from the reports, it was too high IMO. From my past experience, high debt/equity ratios is never an attractive appendage for a Micro Cap stock, in particular, and carries significant risks. as far as the money guys and their deep pockets at the mid/big-end of town are concerned. Being debt-free will also potentially slow down or deal with any future dilution, IMO.
I have gone back and looked at the company's Debt/Equity figures before the CR.
Table from Simply Wall Street
Again, I think today's announcement/market reaction is a welcomed piece of good news for CGB investors leading into Christmas.
Let's see if the market can build on this tomorrow.
