45 million new shares at .11, page-25

Humans of hotcopper/MMJ. In my view this company is uninvestable. Here are just some of the reasons why.

1. More than half claimed NTA is in unlisted ‘investments’.Given how the listed ones have gone, and how cannabis stocks have performed generally of late, how can anyone believe the valuations ascribed to the unlisted components?
2. Only a few months ago MMJ bought back 5.75m shares for nearly $1.5m. That’s 26cps. Yet now they want to issue about 10x that many shares for just 42% of that price.How can anyone trust MMJ to appropriately allocate capital?
3. The email to holders promoting the SPP focuses on two ‘discounts’ – a 10.9% discount to the sp before the SPP was announced, and a 51% discount to 31/1 NTA. Both figures are literally accurate but in my view misleading by omission.The sp is of course now hovering around the SPP price, and as for (claimed) NTA…well CVE:HVT has crashed a further 30%+ since 31/1 NTA was determined. So the $11m in HVT at 31/1 is now more like $7.5m. How can anyone trust MMJ when it is quoting old and knowingly optimistic figures when asking its own shs for cash?
4. The directors haven’t exactly been wading into the market with their own cash. If MMJ is such a bargain, why haven’t they?Receiving cash and shares and options for their VERY HARD WORK is a pretty sweet gig, but demonstrates exactly nil about their true conviction in relation to MMJ. Their willingness – or otherwise – to actually pay money for equity speaks volumes.
5. MMJ claims an SPP is the “fairest and most efficient means of raising equity”.That claim is patently absurd. There is only one fair way to raise capital: a pro-rata rights issue. SPPs are astonishingly unfair to larger holders, who (assuming the SPP actually raises material funds) are badly diluted by them.

And I haven’t even looked into the cross-investing alleged by some on this forum.