Ann: Half Yearly Report and Accounts, page-2

@Rthek @amb005

Thought I would bring the conversation over here so as to not muddy the waters on other threads.

I've taken a deeper look at the financials and there are multiple areas of concern (e.g. auditors conclusion) but the biggest for me is that debt-to-equity has blown out from 0.62 to 1.5. It looks like they’ve sold off some assets and funds received were chewed up by negative operating cashflow. In a company that's performing well you would expect total assets to stay the same as cash received from an asset sale makes it way to cash and cash equivalents. Total liabilities have also gone up so they haven't been able to use the funds from asset sales to make any dent in this either. Given the numbers, it looks like these were forced asset sales to keep the company afloat.

The company is in a significantly weaker position now than it was in Dec 2022 and needs fresh capital desperately. It’s no secret that the only lending available to the cannabis sector is asset-backed financing and they are nowhere near being able to secure that with their balance sheet. I expect further dilution is incoming for shareholders unfortunately.