Sunniva (CSE: SNN) senior management shows their belief in California plan
Sunniva (CSE: SNN) (OTCQB: SNNVF) reports a closing of CAD $5,772,879 of the unsecured promissory notes with warrants announced earlier. Dr. Anthony Holler, CEO, Kevin Wilkerson, President and David Lyle, CFO subscribed directly or indirectly for $1,619,955 of the total.
SNN reports a secondary closing of the offering in the next ten days. The proceeds will be used to provide short term working capital for California operations, capital costs at the California campus and for general corporate purposes. I remind you that SNN expects the sale of the Okanagan Falls property to close in August 2019.
I interpret this as the strongest possible statement from SNN senior management of their belief in the California plan. In addition it is also a comment on the pending sale of the Okanagan Falls property and we shouldn’t forget that Natural Health Services is also being sold.
Finally, an answer to a news report and rumours that California was having trouble approving grow licenses and there is some risk that SNN could lose out. NOT CORRECT. In California, original licenses were Temporary licenses issued while the States processed applications for annual licenses. As the deadline for converting Temporary licenses to Annual licenses approached, it was clear that a large number of Temporary licensees would not be approved so California began issuing Provisional licenses so that companies that had made applications for Annual licenses would not experience any disruption in business.
Sunniva has all the Provisional licenses required for its active operations. Sunniva has made all applications for Annual licenses and continues to work with regulators to complete the application processes.