LHS – Structure & Current State 01/19

Been awhile since I last looked at LHS. Share price volatility has been somewhat typical for sector, but this one (unlike other US based shops) hasn’t yet seen the love (and revenue expansion) that other operators are starting to show. Let’s see what the financials have to say…. $1MM/month in revenues reported. Promise of more stores opening underway - IIRC, was to be 25 14 of them by end of February. They’re stating they’ll have 14 up and operating by June. Some good news, in that an operator in the state is allowed up to 25 stores - it's been bumped up to 30 now.…

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Cronos – Structure and Current State – 08/18

I've only had a cursory glance at Cronos in the past. It's not because I'm not interested, Mike Gorenstein has given an in depth tour of his facilities to /r/TheCannalysts. I've levered off of /u/GoBlueCdn's efforts so far, but it's time to have my own look at the financials, and see what stands out.Right to it.....$90MM in facilities/PP&E, $75MM of that in progress. Huge buildout under way....execution and project delivery critical.Intangibles/goodwill at $12MM, mostly HC licenses. Fashionable for earlier in-sector entrants, demonstrates how much resources were required in the early days. Minuscule compared to WEED, who I recall is around $480MM.G&A relatively steep, but…

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CannTrust – Structure & Current State – 08/18

Cash is deep and holding. Run rates consistent with build.Build assets accumulating. Straight line.Selling and shipping costs accelerating. Inelegant at this stage.Salaries & G&A & those pesky shipping costs above taking flight.Good positioning in net income. Despite the hiccup in costs, they appear to be tracking.Nothing too exciting in optionality struck.If I’m happy to see $300k of intangibles, it’s because future payments (offset) is linked to performance, and is entirely based upon genetics acquisition. Like walking out of a fresh shower compared to much of the sector (Note 9. Can be used as a benchmark against other in-sector intangible bookings).ST investments all in GIC’s.Mortgage…

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Supreme Cannabis – Structure & Current State – 09/18

Well, another day, another year end.Supreme's declaration of record sales caught my eye, because while top line handwaving like this typically is something positive, given they've had almost an entire year of quietly producing/refining, I'd expect exactly what they announced. And I'm far more curious about the optionality and SBC they've got tied to their ass.24% gross margin reported, inelegant. I'll leave the GoB unwinding to Blue, but.....I have a feeling what'll come out of it.$5.5MM in SBC (ka-ching baby), and another $10MM in G&A and wages.Wrote up an 'investment' in a software company by a million. Looks like they got a mark1 ,…

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The Hydropothecary Corporation – Structure and Current State – 07/18

This is the first time I’ve darkened their financial door (as it were) in any detail, although I’ve viewed them from afar as a possible regional hedge of producer exposure.And despite my less than ebullient view of the provincial marketplace they are about to launch and expand within, they do have a large supply deal with a wretch (the provincial monopoly) that will at least get their product into stores and shelves.Straight to it:$2.5MM license capitalized, aggregate $4.5MM in intangibles. Pretty negligible, and alot less than $500MM.Note 10 reads like a shitty Victorian romance novel: ornate, fussy, unclear, and ultimately ends up with a…

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