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Originally Posted by fulham
Has anyone been touching Canadian cannabis stocks? ive done my due diligence and I feel like there's a couple with some insane potential.
Zenabis was at $3-$4 a year ago. It was hammered hard, yet survived. I bought in at .05 and again at .085
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This is all my opinion, I am not a financial advisor, and consider myself a novice in investing.
I finally got a chance to look up Zenabis, I would stay away. They have diluted their shareholders twice this year. And they have warrants outstanding that could add around 50% units. They used the last dilution PO to pay off debt, and the way I read the article, to pay for operating expenses (though they didn't directly state that). This doesn't seem like a growth company, this seems like a company that is struggling to survive.
They are also trying to sell a facility, and are having to reduce their price by 10%, selling a facility into this type of market screams despite to me. They are also taking over a contract to bring Choklat's product to market, from Namaste because of issues between Choklat and Namaste. I am not bullish on this move as Namaste has a 49% share of Choklat, so, what was so bad that Namaste wanted to get rid of the contract? Oh, and Choklat didn't have the professionalism to release at the same time, in fact, Zeabis still hasn't released, so this is fishy.
Now their facials, they miss-classified account payables as property? They went from releasing a 1.5m loss to adjusting to a 7.7m loss... Right now their operation seems underwater, in 2019 they lost more than their gross revenue. I don't see any mention of who audited their financial statements in 2019, and based on the mistake in the last quarter mentioned earlier, I doubt they are audited.
The more I look at this company, the more it looks like they are headed to pink sheets. I wouldn't' invest in this company personally.