Yeah CAN is absolute rubbish. CEO just left too.
CAN boys like deb are mad about my analysis on CAN , its not hard to go and look up financial statements on similar companies around the world, you look at the financial statements , its clear to see the indoor grows not working, huge losses and not trending in the right direction, and that is even talking companies with no debt, in a good regulatory environment with quality management, qualities that CAN does not have.
Since inception CAN management has spent over $176 million. They are in debt over $56 million (more at this point). They are burning through cash at an average rate of over $10.4 million a quarter. Again after all this time and spending, still producing less cannabis than ECS (company thats growing more with only $20 million in total spent)
As of last quarter CAN had 1.7 million in cash left (not even close to a quarter of spending for them which is 10.4 million). To make money they need to make product the big hail mary of the OTC product, which will require them running their newly licensed facility (licenses ECS has held for years). This facililty will require staff of 140 (according to CAN themselves). This staff need to be paid (an extra expense CAN didnt have when burning through $10.4 million a quarter for the last 4 and half years.) They will also have huge energy costs in running the facility (another expense to add.)
CAN will need more money , as to why they are trying to raise more right now, another 10 million at 22cents , this wont even last another 6 months at current cash burn, this should be glaringly obvious now as they are nearly done with what they have before the facility has even opened.
Their expensive facility will then be producing the same grade cannabis product that companies like ECS are producing out doors. (Yes same GMP grade, TGA regulated product.) Yet ECS is producing this for 10 times less cost, so CAN has no competitive advnatage.
So the end result is an over priced product from a company in heavy debt, that needs to spend more than they are currently, with no competitive advantage of the final product, CAN is using a blue print of an outdated business model (Canada 3 years ago) and its not even working in Canada, thats a better regulatory environment to operate in, so there is no way CAN will make it work here.
I dont know how more obvious in can be here.
The one thing CAN holdesrs point to as the big saving grace is going to get try to approved for the OTC sleep product, but several other companies are going for the same OTC product , literally the same sleep CBD aid, and these other companies have better management and no debt and better sales (again here CAN has no competitive advantage), CAN using inputs of their own grown over priced cannabis, leading to an over priced OTC product. Thats going to be the saving grace to pull this company out of a debt spiral?
They will have competition for OTC product from companies like CAU (which also got CBD sleep trials going for an OTC product) and CAU happen to use ECS product for their input , hence creating a cheaper more competitive product....
Like always in these stories with companies like this, it will be management walking away scott free, like the CEO just did after being paid a great salary for over half a decade, and shareholders being the big losers. Can see CAN selling the facility to cents on the dollar to the likes of Cannatrek or some other private company, and then operating as a pharma with a few products the way of AC8, ZLD, etc.
With all this information you can see why CAN holders might be a bit frustrated and bitter and need to lash out on shares they dont hold, futures not looking bright.
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