Hi Crossthetea Just a few comments on your recent post Your statement that every company has cash burn is incorrect, loss making company’s burn cash, profitable company’s generate cash You are surprised by how low the cash burn is ? This company is burning vasts amounts of cash per month just to survive & will be out of cash at the end of this year Why do you think there is money in IP licensing ? This company has not invented anything new, they have put artificial cannabinoids into face creams, which any other company could easily do ? I do not understand your OEM sales statement, If CBX are the original equipment manufacturer, who have nothing original, who are they going to sell too instead of direct to consumers ? If the stroke of genius for this company is selling smaller pots of the same products that don’t sell in larger pots is their recipe for success, sorry but I do not hold the same view I assume you are a shareholder due to your views
AM01 The company is listed on the standard list of the LSE, one of their many rules for being listed is if there is any news that the company is aware of that could effect the share price in this manner it must be published to all shareholders via a RNS, so yes the company does need to announce these things.
The company should have issued a RNS to cover themselves either way 1. We don’t know why the share price has moved up x%, no problem 2. The reason why the share price has moved up x% is this, no problem
If they announce tomorrow fantastic news like a tie up with selfridges or a takeover has been approved/ etc. that would have insider information / trading stamped all over it
They are not capitalising on one of the few benefits of being a small company, being nimble, small company's like CBX should be exciting, snappy, like watching a flyweight boxer, always on their toes, always moving, creating ideas
Try one advertising idea, it does not work, so what, change it quickly People don't like the packaging, so what, change it quickly The website needs updating, so what, change it quickly
As a small company you can do these things, large conglomerates cant they are like supertankers, they take ages to turn ideas around, i feel the last thing this company needed was a CEO from a conglomerate,
Time is running out, they need some exciting brilliant ideas before its too late
Rushden Shareholders aren't selling because they cant, if you want to sell a lot of shares you need to find someone who wants to buy a lot of shares.
A great example of this happened today in Guild Esports ( GILD ) they announced a sponsorship deal with Coca-Cola, great news on the surface, but it is still a tiny loss making company nearly out of cash,
The gullible, naive private investors fell over themselves buying shares sending the share price rocketing, fantastic news for the larger holders that were desperate to offload this stock who gladly sold them the shares they wanted
Have a look at that one in a few months time it will be a lot lower than today
1. The cash on the balance sheet will be gone at the end of this year 2. They have next to no sales 3. An equity raise for this company, in this sector, in this market, could prove nearly impossible 4. Taking on debt is a joke, they will have spent £13m at the end of this year to produce nothing, who would lend them money ?
My personal view is many private investors in penny shares do not understand business in general, they may like a product or idea but do not understand the business process behind it
If this company does not raise more funds soon when the auditors sign off the accounts year ending 31 August 2022 released beginning December 2022, they will have to stamp the accounts with “ There is a material uncertainty as to wether it will be able to pay its bills as they fall due over the next 12 months “
This is a massive red flag to all as to wether the company will survive for the next 12 months, so talking about long term future etc is nonsense, the long term future of this company will be decided between now and the beginning of December