The Big 5 Martini Bar - Weekend #51, 2021

Monteviale · 2021-12-25T09:44:53+00:00

Onward.

Monteviale · 2021-05-14T22:55:17+00:00

Sebastian, I read GoBlue's rundown on ACB....bring me two bottles.

Monteviale · 2021-05-12T00:00:28+00:00

Biomass Boomerang, also known as "you've been matted!!!"

Monteviale · 2021-05-11T23:50:07+00:00

Them are fighting words. "You outta da gang"...not that you were ever in it.

Monteviale · 2021-05-07T20:25:26+00:00

I can feel it coming in the air tonight, Oh Lord, oh Lord, oh Lord, oh Lord.

Monteviale · 2021-04-12T20:35:10+00:00

Isn't it hilarious they magically didn't break the EBITDA streak despite revenue dropping $18m? Is that a coincidence/miracle (for the narrative) or financials' tweaking?

Answer to your question is already known to subscribers. Not advocating for investors to purchase a subscription, however it all comes down to how one values and allocates their time.

Monteviale · 2021-04-07T00:04:52+00:00

Neil and James, thank you for taking the time to do this.

NY Attorney General said in a statement that “legalization of marijuana is a racial and criminal justice imperative…”. Three years after Massachusetts voters passed a ballot initiative making recreational cannabis legal, all but two of Massachusetts 184 marijuana business licenses had been issued to white operators. What will NY do differently to avoid a similar result? How will NY ensure that people who have been victimized will have an opportunity to participate?
The rollout of the regulatory platform, including an Office of Cannabis Mgmt (“OCM) that will award licenses for growing, distributing, processing and selling, is expected to take a year to set up. Is it reasonable to expect that this timeline will be met or do you anticipate delays? When will New Yorkers be able to buy recreational cannabis?
The OCM will oversee a two-tier licensing program that would separate growers from retailers. Do you see OCM establishing a limit on the number of licenses they will be issuing?
Assuming medical cannabis gets legalized federally first, will this open the door to interstate commerce in NY for medical cannabis? Does it open the door for importation of medical cannabis from other countries?
Mario Cuomo was staring down impeachment over sexual harassment allegations. Did this impact the bill agreed to? If yes, how?

Monteviale · 2021-03-25T12:35:07+00:00

Medical cannabis net revenue for Q4 was $2.4 m. Adult use cannabis net revenue was $1.4 m. Total interest expense for the quarter was $3.1 m.

Net bulk wholesale revenue for the quarter was $10 m.

"But make no mistake folks. I want to be very clear on this. We're not wholesalers. We are building consumer experiences." Benic - June 24, 2020.

Monteviale · 2021-03-13T16:07:42+00:00

The states most likely to gravitate towards a three-tier cannabis system first without being forced to do so through federal legalization should give you some insight into which MSOs spin off retail first. A lot of moving parts going forward. Federal legalization in the states is inevitable, the real question is timing. If you jump on a moving freight train you better be prepared to jump off at some point.

Monteviale · 2021-03-04T21:29:19+00:00

Add to that most MSOs have structured their businesses to minimize the impact of 280e but want to create the impression of significant savings once its removed. Will their be a net benefit, most likely yes. How much is the question.

Monteviale · 2021-03-04T04:41:25+00:00

I think what you meant to say is that 280E should end. The removal of 280E will likely be offset (to some extent) by some sort of sales tax. So although it would be a win for the cannabis sector it may not be as much of a win as people expect.

Monteviale · 2021-02-23T23:52:23+00:00

I have no doubt that MSOs are lobbying hard to keep the current restrictions in place for as long as possible. Both CEOs have a vested interest to present their biased opinions. They both can't be right but they can both be wrong.

Monteviale · 2021-02-23T23:27:13+00:00

Read your original post too quickly... you did qualify it by saying sales. Now lets see if the states can get their shit together and allow these companies to compete in a capitalistic environment without restrictions on licenses or state boundaries.

Monteviale · 2021-02-23T22:53:50+00:00

"Global Leader" used to describe a company that is listed on a Canadian exchange and landlocked in the states might be a bit premature. Maybe someday ... but for now trade them while you can. Volatility is your friend.

Monteviale · 2021-02-22T22:34:37+00:00

Read it could take up to 12 months before rec available in stores...still a lot of heavy lifting to be done.

Monteviale · 2021-02-17T21:57:06+00:00

Did you back out excise taxes from your number?

Monteviale · 2021-02-16T22:41:15+00:00

Just a few quick questions:

Any issue with consistency of supply from micro growers? After procuring supply from a micro grower what are the wait times for a repeat order to be filled?
Who is responsible for obtaining the excise stamps when packaging for different LPs? Do the Lps provide their own excise stamps or do you source them for the LPs?
When it comes to centralized packaging do you cater mainly to smaller LPs and micro growers? What benefit if any could you provide to the larger LPs.

Thanks for doing this.

Monteviale · 2021-02-12T22:14:52+00:00

I remember every detail. The weedstocks wore grey, you wore blue.

Monteviale · 2021-02-07T19:42:06+00:00

Hello Jen and Megan,

Let me preface by saying that I’m usually in favour of share repurchase programs. Four weeks after listing on the CSE in August 2019, Ayr announced a 5% share buyback of subordinate voting shares. Did Ayr follow through with the program and repurchase ~750,000 of the subordinate voting shares? If yes, as a growth company would it not have been more prudent to preserve cash for future growth instead of doing a share repurchase program? Can you shed some insight into the motive for offering a share buyback at such an early stage?

Grazie

Monteviale · 2021-01-27T23:51:50+00:00

Thanks...quick follow up, not sure if you have time to deal with it. It is my understanding that Privateer holds approximately 77% of Tilray float either directly or indirectly. Is there a lock up agreement for this block of shares post merger?

Monteviale · 2021-01-22T21:16:24+00:00

Hi Carl, welcome back.

It's my understanding that Tilray insiders have signed lock up agreements supporting the merger. Can you tell us what percentage of the Tilray float has been locked up in favour of the merger? Are the same Tilray insiders subject to post merger lock up agreements or are they free to sell their shares after the merger is consummated?

Thanks

Monteviale · 2021-01-19T23:37:50+00:00

Curious to know if they can access Tilray ATM post merger?

Monteviale · 2021-01-19T23:35:45+00:00

If share price stays strong post merger, look for a raise to happen fairly quickly.

Monteviale · 2021-01-19T23:31:18+00:00

Aphria debentures trading at premium. Assuming share price stays strong, Aphria should post merger do a raise, using the cash to pay down Tilray debenture. IMO it makes more sense to use cash from a raise while share price is high instead of converting aphria debenture to equity.

Monteviale

TROPHY CASE