Hi kyba, theres not much dilution in CAN currently. This means the SP can easily be influenced by trades on low volumes particularly at this level.
If a stock is heavily diluted, it can take ages for the SP to move, even on good announcements. Dilution can occur when CRs are done at relatively low SPs, CAN did most of their CRs at prices way above IPO. Check the announcement history.
Unfortunately we find ourselves in a bit of a pickle, CAN were not able to raise the full amount of the previous CR, its likely that investors were a bit ticked off by the results of the clinical trials and lack of results from the cultivation arm evidencing any decent sales margins. Hence why we have the agreement described in the recent announcements and discussed by Wasko.
As far as dilution goes, we are in a pretty good position compared to others in the industry who chose to raise capital with unfortunate timing.
The whole industry is now striving to demonstrate self sufficiency. CAN group are behind the eight ball and leave a lot to be desired in this regard - refer to any of Wasko's posts. I believe this is due mostly to their previous focus at registering an OTC product plus the challenges with construction during covid and now interest rates.
I know others on here have indicated that competitors were also attempting to register products with similar timings, though I am yet to notice any CBD prodcuts on the shelves though so would be interested to hear if any were successful and be given an update. (Anyone???)
We are only just beginning to see the results of optimisation of the cultivation side of the business. It will become apparent whether or not it is possible for CAN to become profitable in the coming quarters.
