What a joke!
Peaked at $1.21 at the end of August last year, and generally been a pretty steady downward ski slope since then, bottoming out about 39c.
Pops back up to 48c and then the NZX enquire about the price?? :lol::lol::lol:
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What a joke!
Peaked at $1.21 at the end of August last year, and generally been a pretty steady downward ski slope since then, bottoming out about 39c.
Pops back up to 48c and then the NZX enquire about the price?? :lol::lol::lol:
NZX probably want to stop another bs run up to $1.20.
A lot of first time investors got smoked on this stock last year.
Good guy NZX for watching this like a hawk
bought some yesterday at 44 as a punt on the retracement from the recent 'please explain rise'
up this morning already!!
just a smart aleck trade.... so not recommended to anyone else
Dang missed that mini CDB advance .. ;)
just as I missed the massive take off with AMC on the US market in recent days ;)
new info released with some financials!!
Please note that the CEO commentary releases capacity and revenue potential
information relating to the Company's joint venture cultivation facility to
the market for the first time as follows:
Cannasouth Cultivation's current facility has the capability to produce
between 1500 kg - 1800 kg per annum, depending on the variety grown. Current
wholesale pricing estimates for this flower ranges between $3,500 p/kg and
$10,000 p/kg, depending on the market, cannabinoid profile and quality
standard achieved.
Using a market price of $4,500 p/kg, phase one of the facility can produce
circa $8 million in annual revenue.
We are in negotiations with several prospective customers to place these
first harvests and exports are expected to begin in early 2022.
quite frankly I am disappointed in the prices they suggest are attainable.
even the top price they quote of $10,000 per kg is actually less than $300 an oz. so they would do better to sell it on the black market. weed can go for up to $450/oz if its good
at $4500 per kg its only around $130/oz which is cheap as chips on the street.
I guess its a different playing field - the competition for Cannasouth is not the black market, it is other (overseas) medicinal cannabis companies and legal cultivators. $450 an oz is more of a reflection of the amount the NZ blackmarket consumer is being ripped off by their dealer
(duplicate post)
chart looks promising to me....
Cannasouth to Consolidate Operations
https://www.nzx.com/announcements/375070
I don't have a problem with this tbh, this was always going to be a long game.. anyone expecting revenue in the first 3 years were being overly optimistic imo.
They were always planning on buying Midwest from what i recall (had the option to buy outright within 3 years or so from when the JV was announced), as for cultivation - who knows, maybe the referendum had something to do with it? I think its a great move - 100% ownership = 100% profit?
I'm cant see any benefits of being a shareholder in this SSP and general retail offer.
I would've thought there'd be something in it for holders even if it was just an extra option or something.
Half year figures out, gone to pot.
Cash burn, baby burn.https://youtu.be/A_sY2rjxq6M
CBD at an inflection point so no worries
Bright profitable future ahead
Ah, you have 'high' expectations Winner.
We thought you were on the Speed, not the Weed.
as expected....
first commercial crop soon.
Study suggests "weed" may be the next weapon against covid.
https://www.foxnews.com/health/covid...ompounds-study
Has anyone heard any news about the first harvest, which was supposed to be late 2021?
CBD seem to be a bit behind their competition in the communication stakes unfortunately.....
Wow, just when you thought the share price could not get any lower - $0.285!!!
These guys remind me a bit of Blis Technologies - good ideas, but poor commercialisation and communication.
Either they're nearly dead in the water or they've got a positive announcement to make and a bit of inside trading is going on.........
Still holding!
https://www.nzx.com/announcements/395328
Same!
I have a few in my Sharesies account, and I'm only under water about 10% now. which isnt too bad for a very risky and not particularly rational investment.
I only bought after the cannabis rush but still paid too much, oh well never mind... maybe it will continue higher after this latest deal. Havent read the detail of that but I guess my view is that if you can grow the good stuff there will always be a buyer, so the only real question is can they grow the perfect product year after year.
Let us see.
Horticulture is risky.
It costs a lot to control the environment in every aspect but is the only way to go for regular repeated cycles.
I couldnt make it to the CEO's presentation today but I've got a link somewhere........
More money required.....
Cannasouth to launch a pro-rata renounceable rights issue - NZX, New Zealand’s Exchange
Looking like they didn't raise as much money as hoped, or have I missed something. The surprising thing is how much the rights were trading for.
https://www.nzx.com/announcements/404318
Cannasouth Limited (NZX:CBD) is pleased to announce that it has signed a binding term sheet (“Term Sheet”) with the Board of Bay of Plenty based, medicinal cannabis company, Eqalis Group New Zealand Limited (Eqalis) to advance a 50:50 merger between the two companies.
And another capital raise in the new year...:eek2:
merger sounds good in theory, economies of scale, grower boffins sharing ideas, etc etc, but at least in the short term it adds further risk and its difficult for shareholders to gauge the value of the acquisition.
Holy heck .. there will be a marriage but both the bride & groom's relatives & family all
have to pay for their own tickets to ensure the party is large & loud enough ;)
when's the first dividend expected to be hatched out of this shotgun arrangement
obviously chopped into smaller pieces on a larger chopping board ? ;)
bound to be a further Cap raising for the next celebration too and so forth
probably until the cows stop coming home (probably got into the wrong field
and got high on the good stuff) ;)
Perhaps PPH might be able assist with the money collection side of things
even turn it into a regular donation program to support an ever growing
number of dependents onboard :)
This is from an advanced stage cannabis company that has just gone into liquidation -
'Unfortunately, there is no good news to share regarding the New Zealand cannabis industry. Although the long-term prospects of the industry might be strong, the risky nature and small size of New Zealand’s cannabis businesses mean there is no real institutional interest. The companies are still very far away from being profitable and the investors’ support is not there anymore. The tough regulatory scheme, the pandemic, and now the inflationary and geopolitical environment have made the survival of the New Zealand cannabis companies extremely difficult.'
Unfortunately the evidence would suggest this statement is true.....
GFI.NZX is a joke, don't go near it
None of these companies are earning, that's the problem, it's a very high risk sector
Something that surgeons should be aware of?
"One reason: Patients who regularly use cannabis may experience worse pain and nausea after surgery and may require more opioid analgesia, the group said."
https://www.medscape.com/viewarticle...&impID=5079640
Look, I'm not denying this is a risky business and my investment is only tokin' :p, but its important we don't just blow smoke (of any kind ) out of our arse.
I quote from a CBD announcement three months ago
Cannasouth is now generating revenue from the sale of medicines in New
Zealand.
https://www.nzx.com/announcements/407626
Revenue of $141k, total loss of $8.2m, cash in the bank of $1.91m, operating cashflows of -$5.36m.
Market cap of $43m.
What can possibly go wrong....?? ;)
they're going to need to stem (plant word ) the losses pretty quickly.
I'm going straight and selling these now, that looks terrible. take a bit of a 'hit' , oh well,
Looks like the merger is going ahead, definitely looking like the better option out of the 3 medical cannabis listings on the NZX (although GFI and RUA arent exactly tough competition!)
https://www.nzx.com/announcements/412215
Dual listing......
https://www.nzx.com/announcements/415779
Laying the foundations for future capital raising!
• "To enhance shareholder value by providing increased liquidity in a bigger market that is more accustomed to investments in biotech and early-stage businesses." (what they really mean is NZ market for capital raising has now been exhausted we need bigger markets to raise money.)
• "To gain access to mid-cap institutional fund managers who typically invest in businesses on the ASX that can provide liquidity."
(Gaining access to capital from mid-cap fund managers.)
• "To tap into global fund managers who prioritise investments in internationally recognised bourses such as the ASX."
(Again its about gaining access to capital)
• "Recognising Australia's status as the largest and fastest-growing medicinal cannabis market in Australasia, and given Cannasouth's intention to expand its business there."
(They will need much more capital to expand (or stay alive)
it's the entire point of listing though isn't it... to raise capital...
(although GFI and RUA arent exactly tough competition!)
Hahahaha so true GFI is a joke
You're quite right these guys if anything are very much masters at being a public company, they have competed 5 capital raises, made an acquisition and done a merger. If anything they do it better than anyone else, they might even consider becoming an investment bank while they're at it. While its the point of being a listed company, its not the point of raising capital. They are meant to raise capital to create shareholder value and so far they have not created any shareholder value on todays share price. They have just raised capital less than 3 months ago and they are already thinking about their next capital raise, which is what makes the announced dual listing comical.
19/6/2019 - Raised $10m at 50 cents at IPO
Total shares after issue 102,000,000 at 50 cents that’s a $51m company
4/5/2020 – Raised $6m at 38 cents
Total shares after issue 121,321,301 at 38 cents that a $46m company
3/8/2021 – Raised $4.5m at 40 cents
Total shares after issue 135,280,551 at 40 cents that’s $54m company
8/9/2022 – Raised $3.2m at 30 cents
Total shares after issue 147,891,069 at 30 cents that’s a $44m company
30/5/2023 – Raised $7m at 29 cents
Total shares after issue (includes raise and merger) 320,533,594 at 29 cents that’s a $93m company
Todays share price 21.5 cents with 320,533,594 shares on issue with a valuation of $69m
Having raised $30.7m to date
https://www.nzx.com/announcements/417311
Revenue up 5,408%!! :cool:
I would have thunk this would have been on the radar before/when they did the merger? Especially when they aren't so flush with cash and while their "expotential growth in demand" kicks in and translates to sales......:sleep:
https://www.nzx.com/announcements/419292
Cannasouth Ltd (NZX: CBD) announced today that following the merger with Eqalis, effective 1 June 2023, opportunities for cost rationalisation through operational efficiencies and greater focus were identified. A range of initiatives are underway to deliver the efficiency gains and to reduce cash spend by around $400,000 per month once restructuring is fully implemented. The restructure will retain key business intellectual property and functionality to meet immediate revenue goals.
https://www.nzx.com/announcements/421556
Paraphrased to "Please send money....."
https://www.youtube.com/watch?v=6x9crIZFKRU
0:52 We were commissioned by Cannasouth NZX CBD to write some research.
1:20 That chart there is the new cannabis Ventures Global cannabis stock index so new cannabis ventures has been tracking the cannabis sector for the world for the best part of two decades and they've constructed this index from various publicly traded cannabis companies.
1:42 Cannabis is a boom or bust industry when it booms it booms hard, when it busts it busts hard. There've been four booms over the last decade. The biggest was 2013 when Canada formalized the regulatory environment for medicinal cannabis and Canadian stocks led the charge in terms of creating this new industry globally.
There have been subsequent booms in 2016, 2020 during covid and I'm predicting that cannabis 4.0 is coming up but it's going to have to overcome the bear market that's been in since about 2021.
2:47 My thinking is that cannabis is base building at the moment, 24 it's got a decent chance of being in a good year.
2:59 Winners are coming through in terms of profitable and rapidly growing companies benefiting from a rising user base . We're seeing that around the world, US Canada and now we are starting to see it here in Australia.
3:14 TRK a company that we know quite well. And they started from zero and now are up to $90 million in revenues.
4:08 So is Cannasouth over in New Zealand. Companies are working on GMP, good manufacturing practice where they make their cannabis products like you would make regular pharmaceuticals They're going to be one of the winners here. The other winners are companies with clinical data. It no longer cuts it just to say that cannabis would makes a great painkiller what you want to know is that cannabis might act against sleep disorders for example or Autism Spectrum disorders or Parkinson's, or you name the disease condition. Cannabis is a pretty useful molecule.
6:41 This is the chart of Cannasouth on NZX. Hasn't been a great couple of years for Cannasouth. Middle of 2023 they completed a merger with a competitor called Eales so this is now a fully integrated cannabis company based in New Zealand probably the dominant player in that market with a growing suite of products, new generation products coming through, links up to the various distribution channels in in New Zealand, ready to start selling in Australia and globally. The chart looks terrible it's fair to say.
Business at this company has never been better
7:44 Cannasouth, the company's actually given some revenue guidance about how much they expect to make in 2024, they're talking six to 10 million. To give guidance is always a good catalyst.
8:09 So keep an eye on that index we were talking about there. If that starts to move then
Cannasouth can move with it. So let's talk about why investors should put this one on their radar screen. It's got a decent size, it's 57 million market cap on NZX alone, it's contemplating a dual listing on ASX for next year. The important thing is itÂ’s fully integrated. They actually grow the product in a number of cultivation facilities in New Zealand and then process it at a plant they've got at Hamilton on the North Island.
8:42 Strong NZX regulations were put in place by the Ardern government governing how you can act as a medicinal cannabis company in New Zealand and how products can get approved. The New Zealand Market has traditionally been an import market.
9:05 I've been astounded by the number of new patients coming on the market in terms of being able to access cannabis medicines in Australia. This is not the case in New Zealand, but in Australia in the state of Queensland any general practitioner can prescribe a cannabis medicine whether not or not it's an approved product.
9:34 Into 2024 this company's raising some money at the moment hence the briefing we just did over in New Zealand. Our research is good background to that we encourage you to go check it out.
Pitt Street research.com is the place to find that.
More 'trouble at mill'.......
https://www.nzx.com/announcements/424059
Cannasouth Limited (NZX: CBD, Cannasouth) announces that Mrs. Hilary Webber, Independent Non-executive Director, and Mr. Greg Misson, Executive Director, of Cannasouth will step down from their positions with the company effective 1 January and 5 January 2024 respectively. Mr. Misson will continue in his executive management role to 31 March 2024.
Big trouble in CBD world.....
"CBD has sought the trading halt as it is in dispute with some of its secured convertible note holders, which has the potential to prejudice an urgent additional capital raise CBD is seeking to finalise and announce to market. CBD has an urgent need to secure funding to remain solvent."
This won't help in shareholders confidence when supporting a capital raise. Could be massive issues if they can't get the cash coming in to grow this thing to profitability.
Not Holding
Code for, if the convertible notes are not converted from debt to equity then we cannot trade as we are insolvent.
Anyone on this forum pumped money this high risk venture?
Wasn't this one all moonbeams about how the magic stuff just mysteriously took itself off to market
and was a little ripper in progress - so much so that all the boys & girls for as far as the
eye could see were clambering over one another to fill their pockets with CBD stonks ? ;)
What went so badly wrong in just 18 months ? ;) Did the sun stop shining ?
123456789101112
Poor shareholders. Probably wake up to something like a 50 percent dilution of their holdings on Tuesday morning.
Better than the alternative which would be liquidation.
BackAppointment of Voluntary Administrators
28/3/2024, 5:03 pm RACannasouth Limited (NZX:CBD) announces that after careful consideration of the circumstances of the Company, including the challenges of securing additional funding and balancing the interest of shareholders and convertible note holders, the directors’ have made the decision to place the Company into voluntary administration. The appointment has been undertaken in consultation with the note holders who at the invitation of the board nominated the administrators.
The responsibility for preparing a plan for the ongoing operations of the Company with the objective of meeting cashflow positive results, has now passed to Ben Francis and Garry Whimp from Blacklock Rose Limited as joint administrators of the Company.
The administrators will be undertaking a detailed review of the operations of Cannasouth with particular focus on identifying the profitable lines of the company’s products and services. When that has been completed the administrators will be seeking financial support from shareholders and note holders to implement that plan. It is expected that the review being undertaken by the voluntary administrators will take some time to complete as the parent company and its principle trading subsidiary companies are scrutinised.
In the meantime, Cannasouth continues to support its customers with quality products that meet the strict regulatory requirements that apply to the production and supply of medicinal cannabis.
Sad day. Nothing left for the shareholders. Note holders may get a few cents in the dollar if they are lucky.
It's a massive warning to those mums and dads that are invested in this segment.
~$73m in raised capital, impressive feat. Suprising it's going before the real dog GFI.
Gez - that's gone south in record time .. all the boys & girls who jumped in for a piece of the action
won't be happy
This will get interesting. The directors took up the notes around December 23 which were secured against the plant and building assets.
So what went wrong so fast, within a few quick months which included the Xmas break.
What did the Directors (note holders) know that the market didn't.
Should have this been disclosed, and when should have it been disclosed.
From the outside shareholders dived in because the Directors showed a vote of confidence by lending the Company money via the notes.
Something smells of weed here?
Indeed, so what could ultimately unfold if things don't go well with Administrators installed ?
Ultimately it will be a decision that the thing still has some ability to fly with some tinkering under the hood, it gets sold or broken up & hocked off in pieces ; or corporate undertakers get installed to rip out as much loot as they can spy from remains (Liquidator's large lunches all duly provided by the Victim during that period) ..
Liquidation - then what - Directors get their dough back if sold or walk away with plant, buildings etc
and in the fire sale of what remains get a good deal also out of picking up the rest of the bits for a song ? ;)
Let's face it - how's the market currently for purpose built plant & buildings for processing fancy export lots of Weed & fancy byproducts ? Ripping ahead, sold yesterday or begging for any buyer to take away at any discount unless as happens sometimes once in a bluemoon an eager bunch of familiar faces rock up wanting to take the lot off the Corporate undertaker's hands at a deep discount? ;)
No-one mentioned any Notes - did they ? ;)
One way of privatising the job, getting rid of costly pestly public spotlight and nosy stakeholders
by the thousands - all wondering why little is reported as happening and giving the top brass grief ;)
So what future prospect does this operation hold out of the spotlight ?
What was used in initial promotionals for the float was pretty rosy wasn't it ? ;)
And there are still further new operations under way even now who still see the same glowing sun & prosperity in this same industry sector & lucrative potential possible, based in good old NZ.
Who knows - if the Board, or some of the Directors (being also some of the Note holders) may still see glossy things ahead, but don't want the extra truckloads of cumbersome public listed company stakeholders tagging along with all the expense, or there could be genuine warring factions across the Boardroom table ? ;)
All up pretty grim news for the minor stakeholder who threw their pennies onto the table from the start or on joining the story between there & now to potentially be facing walking away with zilch or maybe close to it ..
Hopefully the whiff of aroma coming off really good weed didn't impair or affect things at Board Level or some of the mad budding scientists in the Lab didn't make a grave mistake and send some really bad samples over to the Executive suite instead ;)
I remember when I saw these Cannabis outfits being lined up on the blocks to be floated & having seen similar outfits that launched in same manner over the past 40 years - my instant thoughts were that there will be a large pile of poor sods who may ultimately lose their shirts & grundies out of these along the way ;)
If you take a look at the prelim accounts published on 29 Feb then you quickly conclude that the 31 Dec payables show that there was basically no cash left.
The entire balance sheet is a joke. Intangibles and Goodwill.
It reminds me of Enron. Just whack it on the balance sheet.
I can now see the sticking point. These companies tend to sell the silverware to survive. But in this case the silverware has a security over it.
My main question is still how did this happen so fast. Even the notes were issued for a 24 month period.
Depending on the cash burn from Jan to today (calling that 100 percent liability) add to that the notes value. Then take the plant value ( discount from bv as the market is tough and will take a lengthy period to sell)..... Then the Administrators are only left with one option. That is ask for shareholders to cough up say 10 million. Chances of that happening, I do not know.
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The holders of Eqalis who sold into a merger with CBD their company with $6-7 m cash in kitty only back in
May 2023 for CBD shares must be really happy now ;)
All the extra cash seems to have been gone by CBD's Dec 2023 balance date and it was back to scratching around for further Cap Raise & notes.
Revenue starting in Nov / Dec 2023 of just $200-250 K pm doesn't quite cut it when the merged outfit is bleeding $8-9 M a year .. Administration expenses seems a great burial ground $6-7 M just there alone.
Wonder why the Eqalis Directors who came on board in May 2023 decided to jump overboard in Dec 2023 ?
Obviously if CBD are bleeding about $8-9 million Red ink a year with low very late revenue inflows only starting in Oct 23, then it has to come from somewhere - doesn't it ? ;)
The CEO hasn't come up with where the plantings of the high yielding mysterious fast money trees are located or if they died a painful death by a thousand cuts delivered by the mad scientists hiding in the Lab ;)
The bridge a Gap Conv Notes were only going to cover a small part of the annual net outflows on Revenue deficit side before further digging & begging was necessary.
The CFO & Beancounters dont appear to have grasped the "what Funding Requirements are Needed Plan" before the whole operation reached point of self funding, or something has gone very badly astray ;)
Perhaps there were no further available Merger Targets in the sector with large cash balances in hand that could be considered good marriage prospects able, & willing to part with a large dowry for the privilege ? ;)
Shareprice went into freefall after the merger - my extremely uneducated theory on this, eqalis shareholders who suddenly had their shares converted to cbd ordinary shares may have sold their shares with no escrow in place to stop them getting their cash out, selling at market sell and basically bottoming out the shareprice. It went from 30c at merger to single digits in the space of a year, despite positive announcements of revenue and products being approved. Can’t help but think this was an intentional strategy - will find out once the administrators have their plan for the future of cbd.
Edit: Also interesting to see the CFO has resigned (fallen on sword?) - should we expect the same from the CEO/Chair/Board?
CBD has gone to the pot.
CEO jumps overboard:
https://www.nzx.com/announcements/429429
Wasn't Lucas the founder and largest shareholder?
Newshub reckons should be growing veggies - a real cash crop.....
https://newsroom.co.nz/2024/04/03/ca...iculties-bare/
https://www.nzx.com/announcements/429589
COO terminated and thrown overboard now
https://api.nzx.com/public/announcem...493-420408.pdf
Cannasouth Announces Outcome of Watershed Meeting for Cannasouth Bioscience Limited
Quote:
At the watershed meeting, the creditors of Cannasouth Bioscience Limited resolved to hand
the control of the company back to its directors. Subsequently, Cannasouth Limited (as sole
shareholder) resolved to place the company into liquidation.
Sounds like things are ... South & being Canned ;)
CBL is their r&d arm isn’t it? From what I saw all other entities are now continuing under a DOCA - what does that mean for shareholders? Will it mean shares will be able to be traded still?