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  1. #41
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    At least this should create some interesting banter between the bulls and the bears

  2. #42
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    Going to put some into this, might end up with a good high in green or left with just sinking red eyes

  3. #43
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    From the PDS, Cannasouth will have an implied market capitalisation post IPO of $46m - $51m yet has no revenue or even products?!?

    The lucky wholesale investors who invested in August stand to make a 6.4x return in 9 months! While the poor investors who waited a month, stand only to make a 2x return in 8 months....!

    Summary of Capital Raising Initiatives and Commercial Milestones

    • in August 2018, Cannasouth undertook its first external capital raising where
    it raised $1.2 million at a pre-investment valuation of $5 million from several
    “wholesale investors” (as that term is defined in the Financial Markets Conduct
    Act); and

    • in October 2018, Cannasouth undertook its second external capital raising,
    where it raised $2.5 million at a pre-investment valuation of $18 million from
    approximately 38 “wholesale investors” (as that term is defined in the Financial
    Markets Conduct Act).
    Madness
    Last edited by Jaa; 29-05-2019 at 07:29 PM. Reason: Edited after SilverBlizard's comment below.

  4. #44
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    It used to be tulips.... now its dope.....

  5. #45
    Membaa
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    Quote Originally Posted by Jaa View Post
    From the PDS, Cannasouth will have an implied market capitalisation post IPO of $46m - $51m yet has no revenue or even products?!?

    The lucky wholesale investors who invested in August stand to make a 10x return in 9 months! While the poor investors who waited a month, stand only to make a 2.7x return in 8 months....!



    Madness
    Not madness at all, ask yourself why the wholesale (early) investors agreed to IPO? Surely not to get rich(er)? either way they win, by selling into the post IPO euphoria or by holding shares that are are 10 baggers.

    Sort of like private equity floats, or back door promoters, they expect pretty much instant returns of 10x+ multiples and it's the dumb f*ck punters who fund it.

    And you're right, no product, no revenue and they're a biotech research company. May never be any products, let alone whether any one wants to buy them if they do have products.

    And for that reason, I'm out.

    Edit: or the ability for production at scale, sales, marketing, distribution ... so many unknowns.
    Last edited by Baa_Baa; 29-05-2019 at 07:20 PM.

  6. #46
    2019 NZ Stock Picking Winner silverblizzard888's Avatar
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    Quote Originally Posted by Jaa View Post
    From the PDS, Cannasouth will have an implied market capitalisation post IPO of $46m - $51m yet has no revenue or even products?!?

    The lucky wholesale investors who invested in August stand to make a 10x return in 9 months! While the poor investors who waited a month, stand only to make a 2.7x return in 8 months....!

    Madness

    Actually technically thats not right, since post IPO valuation includes dilution of existing shares. $46-51 million includes the raised $5-10 million. So valuation before dilution is $41 million

    August raise is calculated at $5 million valuation + $1.2 million raise = $6.2 million valuation after raise = 41/ 6.2 = 6.6x

    October raise is $18 million + $2.5 million = $20.5 million = 41/20.5 = 2x

    Still massive gains but not as high as you originally though, though comes with the risk thats why the gains are higher. Its only great when you win, but you'll also have to consider how many other investments that don't make it and to justify the risk they have to give a high reward. By no means do I think the valuation is worth it given no revenues and no ideal future prospects yet, though markets are not rational and think about the big possibilities that could happen.
    Last edited by silverblizzard888; 29-05-2019 at 07:25 PM.

  7. #47
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    Quote Originally Posted by silverblizzard888 View Post
    Actually technically thats not right, since post IPO valuation includes dilution of existing shares. $46-51 million includes the raised $5-10 million. So valuation before dilution is $41 million

    August raise is calculated at $5 million valuation + $1.2 million raise = $6.2 million valuation after raise = 41/ 6.2 = 6.6x

    October raise is $18 million + $2.5 million = $20.5 million = 41/20.5 = 2x

    Still massive gains but not as high as you originally though.
    Thanks silverblizzard888 that's really clear, will remember to exclude the money raised next time.

    Still massively exploitative.
    Last edited by Jaa; 29-05-2019 at 07:35 PM.

  8. #48
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    ...What I found interesting is the low amounts the directors are currently paid.

    Anthony Ho - $40,000
    Conor English - $40,000
    Mark Lucas - $80,000
    Nic Foreman - $80,000

    Furthermore
    "No prospective financial information provided"
    "Cannasouth has yet to generate any revenue as at the date of this PDS, andhas no contractual arrangements in place which provide for the generation offuture revenues"

    Last edited by vorno; 30-05-2019 at 12:39 PM.

  9. #49
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    Can some one post Brian Gaynors Saturday N Z Herald business column, not too flattering comments me thinks and only for the very very very brave imho !!!

    buyer beware imo.

  10. #50
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    Tim Preston, Sean Joyce and John Sorensen .............. not much else you really need to know....

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