"Hey Neil - what did you think of the results of the cap raise?"
Mixed results for me. I had hoped that they would have raised more but considering that we are in a pandemic which is effecting global purse strings and that every Tom, Dick and Cannabis company are conducting C.R.'s it was probably to be as good as expected. I saw what ECS raised the other day and some of the other Cannabis companies. I just think many of them have gone too hard - too early in the piece before all the regulatory environment is properly put in place, with the government still concluding their changes to the 1967 Narcotics Drug Act. Many people, investors, at the moment, IMO, have been burnt with the pure recklessness of some of these companies this early in the development phase of the Cannabis industry.
"My take - investors turned their backs on it - many posting here claimed to have thrown the docs in the bin - the whole"
It is reasonable to draw that conclusion if you look at the commentary and see where the sp is at. When I contacted Sholom the other day to ask a few questions about the company I did quiz him about the C.R. specifically. He said that that they had received good inquiry.....so I am not sure that I would agree with your statement that people had turned their backs. I do think, at this time, that people are very cautious about spending money and opening their wallets with the share price at all time lows, not just for CGB, by the way, but for many of the Cannabis companies who have their hands out.
Re the Offer: Pnina and Sholom needed to take up their offer, for sure, and I was happy to see that. I was also pleased to see that their largest shareholder dug in for another $650,000. Considering the state of the economy, and if we purely look at public opinion for CGB, I was pleasantly surprised and somewhat pleased to see a major shareholder invest more in the company.
"the whole thing seemed utterly directionless to me!!"
That is why I waited to see what was going to come out in the Quarterly before I commented. I respect that this is your opinion but, for myself, as a shareholder, who is going long on this stock, I continue to retain an optimistic outlook after reading their Quarterly Overview of Operations.
Disappointment: I will say that I was not happy with the revenues this Quarter, but I am glad that they are showing some fiscal responsibility to continue to enact their fiscal policy to cut costs across the company whilst preserving and increasing their cash holdings. 30.5% reduction on corporate costs and $7.417 ML plus the C.R in the cash account.
$900K back in the kitty was nice to see in the report. Shows that they are focused on getting that debtor ledger under control. I know that you have raised many questions about these issues, and from my first glance, it looks like that they are continuing to tighten the belt buckles.
"Still - I reckon you’ll have bought yourself a tidy parcel - no doubt!!"
No, I didn't participate. I went another path, which I prefer not to mention for privacy.
There is still a long way to go for this company and for many in the Cannabis sector, IMO. With many of us, who still hold, suffering large paper losses, only time will tell if our faith in this sector will pay dividends once the pandemic passes, legislation is properly implemented for Cannabis/Hemp production in Australia and we see Medical Cannabis on the PBS.
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Comments are opinions only and not investment advice. DYOR.
