Canadian CANNAINVESTOR Magazine November / December 2019 | Page 147

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https://canadabis.com/

CC: As demand is currently outweighing supply, we are not seeing price contractions in the market. Stigma Grow is committed to producing high-quality craft cannabis. We believe our customers will be willing to pay a small premium for the extra care that goes into producing an ultra-premium product. Having said that, our grow team and research staff are constantly looking for new interesting ways to grow more efficiently while maintaining the high-quality standard that we expect Stigma Grow to be known for.

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CIM: What does your balance sheet look like currently? How much debt and liabilities versus cash?

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CC: At April 30, 2019, the Company had a net debt surplus of $0.7 million including $1.8 million in cash and 1.1 million of total liabilities. Our acquisition of Goldstream Cannabis in August 2019 provided us with an additional $2 million in cash as well. The capital from the Goldstream acquisition gives us the ability to partially complete Phase 2 of the Stigma Grow cultivation facility and produce approximately 1,800 kgs of cannabis per year.

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CIM: You have $2M from the Goldstream acquisition, completed a raise $4.3M and will need to raise another $30M for phase 2, 3, and 4. Would you have significant cash flows to operate and grow the business at that point or would there be a need to raise more capital?

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