CBD - Cannasouth Ltd

[peat]

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,

[deez_nutz]

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

[Sideshow Bob]

Dual listing......

https://www.nzx.com/announcements/415779

[silverblizzard888]

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)

[Rawz]

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)

Haha yep well said i thought the exact same thing.

They have raised all they can from all the NZ investor suckers,, plenty more over the ditch to tap into.

[t.rexjr]

it's the entire point of listing though isn't it... to raise capital...

[shareman]

(although GFI and RUA arent exactly tough competition!)

Hahahaha so true GFI is a joke

[silverblizzard888]

it's the entire point of listing though isn't it... to raise capital...

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

[Sideshow Bob]

https://www.nzx.com/announcements/417311

Revenue up 5,408%!!

[Sideshow Bob]

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......


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.