RE: Dilution?13 Mar 2022 19:05
Hey Pill. What makes you think the logistics problem is a short term problem? Is it because they said they have a new logistics partner in February 22. Do you think its just a matter of throwing the switch back on. If you read the RNS they also said .....
" As a result of supply chain delays, previously announced additional orders valued at approximately US$1,000,000 may not all become recognisable revenue by the end of the current financial year. The Chill Brands' Board is confident that any remaining orders will be placed with distribution and retail partners during the first half of the next financial year."
Read that again...and try and spot the urgency of the message
So they are confident that remaining orders will be distributed to retail partners sometime in the next six months !!
They are so confident that they gave themselves a six month window just to supply existing shops with orders already received BUT could not be supplied this financial year , and have given themselves a six month window into the next financial year to deliver them. God knows what will happen to any new orders during this time ...............their words do not smack of confidence to me, but the opposite.
Don't forget this company has form now. If they were in any other profession other than calling themselves AIM entrepreneurs they would either have been sacked for incompetence, or in court for deserting their posts.
I think they are talking about two sales channels . The old one of 2500 outlets ( across massive geographical areas) in place but suffocating with lack of units being distributed to sell .....withering on the vine
Then the new February 22 hope where the micro distribution hubs will deliver "locally only" - and this is a new venture that they hope to grow fast to make up for the 2500 outlets stranded. Its going to be 12- 18 months catch-up at least. IMO
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