Member Info for LGO-fan

"Slow, very slowly"

Had a look on Amazon to see what the noise is about. Two things hit me:

1. We are talking about 30-40 reviews per CG product
2. Tiny in comparison to product containing Hyaluronic Acid, where we are literally talking about tens fo thousands of reviews.

Shows you scale of what CBX is up against.

Not just in numbers, but also the marketing challenge is enormous: why on earth CBD/G instead of Hyaluronic Acid for example. Swimming against the tide doesn't even beging to desribe it. I think the whole product strategy of CBX is absolute madness (but I may have said this before, lol)

The increase in cash burn per month is a concern, particularly in light of the flop that was the "soft launch".

And we also know that with marketing investment done during Q2, and the hires they have done, that the increasing trend cash burn can only continue. That is so plainly to see that quite frankly arguing about it is a little bit silly, IMHO.

Sales needs to be ramped up far beyond the capabilities of CBX to hit break even.

That does not mean it's the end of CBX; certainly not. It simply means there will be an equity raise. Now, if they spend that money wisely and get to grow the business, then this raise could be great.

However, CBX will need a convincing strategy to show what they are going to do differently with the cash to turnaround fortunes.

*broken

Being dishonest is like being pregnant: you either are or you aren't.

They have been dishonest. Full stop. Investors trust their money to a BOD, once trust has been broek that is a terribly hard thing to fix.

A cash raise is all but a given:
3 months sales: £13k
3 months cashburn: circa £1.9 million
Clearly this can't last for very long.

Assuming that CG has a gross margin of 75% and has the same cashburn (we know it will be higher due to new hires, product launches and marketing investments), sales will need to hit £2.5 million per qtr just to hit break even.

So the task for CBX is to turn £13k sales per quarter into £2.5 million.

Clint would ask: "how lucky do you feel, punk?!"

(these are just back of the enveloppe calculations)

just had another idea for a competition:

"Given the 13k sales CBX announced in the last RNS, how long before their supplier decides to sell the same products to other companies?

Or do we believe they will stay loyal to CBX to defend the massive business they enjoy together? Just a thought

should read "They could reposition the travel size to a trial size"

From a marketing POV, travel sizes only make sense if your base business has enough traction. Retailers will demand high rate of sales (ROS) for travel sizes as they obviously don't make a lot of money per pack sold. So this needs to be compensated by lots of units sold (high ROS). You don't get those unless your base business is established well enough, as consumers don't buy a travel size of something they don't know.

They could reposition the travel size and trial sizes, trying to drive market penetration and generate some first time sales with consumers, assuming that if they product experience is brilliant, the repeat purchases will follow.

All IMHO

Sept22
1.25p

Don't worry Windows, little Ad really has no
clue what she is talking about.

To me it means: equity raise in 4-6 months max , unless by some miracle CBX starts selling like hell. It's always possible, just like little Ad could one day become sensible.

Who knows, time will tell :)

I am pretty certain that Little Ad is neither Swiss, nor d'Artagnan!

I seem to have missed some interesting conversations on this illustrious BB: I admit, I am "omnipresent ", and therefore you are all as much me, as I am you.

Spare a moment for poor Ad who is having spasms after having realised the above. Him and I are, wait for it, ONE AND THE SAME!!!! (that explains the rash I had this am!)

I can not believe how deluded you are: if the IPO sp was 2p and it is now 20p, I would understand. But to suggest in current circumstances that shareholders missed out on a 25% (ignoring as you always do further facts like spread% ) than you are even more out of touch I thought possible.

Quite an achievement! lol

Joke all you want. Facts are simple:
1. 5,5 mn cash
2. Monthly cash burn of 630-700k pcm
3. Marketing not delivering
4. Range is pathetic

Question, any sensible investor will ask is: "when will the cash run out?". Knowing it takes about 3 months to sort out a raise out, do the math when the raise will occur.

It really is that simple. If I were to meet any potential investor, I could tell them hand on heart what the risks and upsides are of CBX.

The likes of you would only be able to tell them about upsides, rainbows and unicorns.

Just from experience; you can grow a very long beard waiting to get listed in major retailers. It takes a lot of time.

And CBX still doesn't have a full range, so that won't make it easier.

Finally, don't forget that the retailer might list you but he will have minimum expectations in terms of rate of sales. If you don't hit those, you will be quickly delisted. And without marketing investment to drive sufficient demand this is going to be incredibly challenging

A Scottish retailer.... ok, it's a start I guess
Marketing director and a head of sales, new product launches, marketing investments...that £628k cash burn will only go up significantly. That is of course fine, if sales and profit follow quickly, if not we will be looking at an equity raise soon.

All IMHO

i think those who had a shocker probably bough in around IPO time after having listened to guys like you. The so-called "honest" folks.

You don't understand. You see according to Ad, this is better than what he expected

should read "divided by 3.5 months "

From the RNS dated 18/2/22

"The Company's cash and cash equivalent balances were £7.73m as at 18 February 2022"

From today's RNS :"cash was £5.528m as at 30 May 2022"

That is £2.2mn cash burned; divided by 3.4 gives you £628k burned per month. With product launches, new hires and marketing campaigns to fund, I assume that cash burn can only go up.

That is only my assumption, no doubt the next trading update will clarify that.