Zenabis Global Announces First Quarter 2019 Financial Results

Rich discusses Zenabis Global (TSXV:ZENA) (OTC:ZBISF) First Quarter 2019 Financial Results. Find out his take on the company’s earnings report.

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00:04
good morning good afternoon good evening
00:07
this is your captain speaking rich from
00:09
rich TV live and I wanted to talk to you
00:12
about Xena basis’ q1 financial results
00:17
so the Zen abyss announced their first
00:21
quarter 2019 financial results the
00:26
results reflect rapid corporate
00:28
development and significant revenue
00:31
momentum even though the entire world
00:34
economy is collapsing and even though
00:38
everything is falling right now hmm on
00:40
the New York Stock Exchange and the
00:42
Nasdaq overall everything is falling
00:45
hard what are the catalysts for this
00:49
well there’s a us-china trade war that
00:54
doesn’t seem to ever want to get out of
00:55
the news it’s the end of the month for
00:59
May which is typically statistically a
01:01
pretty bad month and we’re going into
01:05
June which I believe is going to be
01:06
another tough month going into the
01:09
summertime especially here in Canada a
01:12
lot of people don’t have a really good
01:13
summer so June is one of the best months
01:15
in the summer it’s the beginning of the
01:18
summer is just gonna be a lot of
01:20
distractions people want to get away
01:22
from their laptops they want to get away
01:23
from the markets they want to get away
01:25
from the hustle bustle and they want to
01:28
go to the beach they want to go on
01:29
vacation they want to spend time with
01:30
their friends and their family so that’s
01:32
what they’re gonna do when that happens
01:35
typically what you see is that June is
01:37
pretty bad and usually it’s bad all the
01:40
way for the whole summer but I believe
01:42
we have a few catalysts to look forward
01:45
to here in the cannabis sector we’ve got
01:48
legalization of edibles coming we have
01:52
legalization of cannabis in America
01:54
happening with all of these catalysts
01:57
that are coming I see and I foresee
01:59
greater things in the cannabis sector so
02:02
what I think we’re seeing here more than
02:04
anything else is just a consolidation an
02:06
opportunity for all the big boys to
02:08
position themselves at lower prices
02:10
right now Shorter’s are winning the war
02:12
they’re going
02:13
continue to short these stocks it’s not
02:15
just the cannabis stocks all the stocks
02:17
all over the world right now are heavily
02:19
under selling pressure now the thing I
02:22
like about Zen abyss is that they just
02:24
reported their q1 financial results
02:27
let’s talk about it
02:28
Zen abyss Global Inc today announced its
02:31
financial results for the first quarter
02:33
ended March 31st 2019 and provided an
02:37
update on operations this is Zen abysus
02:40
first quarterly financial report since
02:43
the public listing of its shares in
02:45
January of 2019 the public listing of
02:49
our shares and our recent graduation to
02:51
the toronto stock exchange which i think
02:53
is huge for Zen abyss reflect the
02:57
ambitions we have for our company and
02:59
our important milestones in the Zen
03:01
abyss growth story we have successfully
03:05
undertaken a range of tangible corporate
03:08
development initiatives in the past
03:10
several months including securing key
03:13
supply and distribution arrangements and
03:16
additional licenses and approvals
03:19
expanding our product offerings across
03:21
Canada developing relationships in
03:24
Europe and obtaining financing to
03:26
support our rapid growth andrew Greve
03:31
chief executive officer of zen abyss
03:34
also commented we are commenced
03:37
providing monthly reports we also
03:40
commence providing monthly reports on
03:42
our operations and look forward to
03:44
continuing to update our shareholders
03:46
and our broader investment community on
03:48
our progress since the legalization of
03:52
cannabis in Canada last fall it has
03:54
become clear that the winners in this
03:56
industry will be those who can produce
03:59
reliable supply despite being a new
04:02
entrant into the cannabis market we
04:05
demonstrated a clear ability to expand
04:07
production and cultivation output during
04:10
the first quarter of 2009 teen on April
04:14
our April 2019 output exceeded our
04:18
design capacity by more than 31 percent
04:21
this is an abyss and our overall
04:23
cultivation output was 63% greater than
04:26
4
04:27
for the three harvests thus far in May
04:30
we have exceeded design capacity by 28%
04:34
with an additional harvest being
04:36
accelerated from June into May we
04:40
anticipate further strong total
04:42
cultivation performance in May relative
04:45
to forecast this out performance
04:48
demonstrates the capabilities of our
04:50
experienced cultivation team and the
04:52
quality of our facilities across Canada
04:55
our results demonstrate progress towards
04:59
our goal of becoming one of the largest
05:01
licensed producers of medical and adult
05:04
use recreation cannabis in Canada
05:07
building on the proven agricultural
05:10
heritage and cultivation excellence of
05:12
our predecessor company Bevo agro Inc we
05:17
are investing in initiatives that will
05:20
grow our production to meet demand
05:21
across our key markets enhance value of
05:25
our shareholders and deliver value to
05:27
all of our stakeholders looking ahead we
05:30
expect further growth from our cannabis
05:34
operations continued expansion of our
05:37
facilities and significant increases in
05:40
cannabis revenue commenting on Zeinab
05:43
is’s revenue growth expectations for the
05:46
second quarter of 2019 mr greaves said
05:49
now remember their revenue last quarter
05:52
was 4 million the revenue the quarter
05:55
before that was 4 million the revenue
05:58
the quarter before that was 16 million
06:01
when they showed 16 million in revenue
06:04
the stock was at 6 dollars and 85 cents
06:07
then they showed 4 million in revenue
06:10
and the stock plummeted
06:11
they showed another 4 million in revenue
06:13
the stock plummeted even more now the
06:16
stock is around $1 70 they just showed
06:19
11 million so they went from 16 million
06:22
to 4 million to 4 million and now
06:24
they’re back to 11 point 6 million
06:26
listen to what they’re gonna do next
06:28
quarter we currently anticipate revenue
06:31
from the plant propagation business to
06:34
be in the range of 16 to 18 million next
06:37
quarter which is more than they’ve ever
06:40
done and when they did 16 million the
06:43
stock was trading at six dollars and 85
06:45
cents
06:46
will we see a resurrection for Zen abyss
06:49
I say yes
06:51
do I know when no I’m not telling you to
06:53
go buy it today I’m not telling you to
06:56
go buy it at all
06:56
remember rich TV live is strictly for
06:58
education and entertainment purposes
07:00
always do your due diligence always do
07:02
your research before you invest in
07:04
anything that we talk about here in rich
07:05
TV live always invest in the best
07:07
because the best is blessed Zen abyss
07:09
has a chance to be one of the best with
07:12
revenue growth in the range next quarter
07:14
of 16 to 18 million I believe that this
07:16
company is undervalued when you compare
07:19
them to their peers look at this so the
07:23
revenue is at eleven point six it was
07:25
four million last quarter four million
07:27
the quarter before that thank you for
07:29
the likes I really appreciate it guys
07:30
and now it jumps to eleven point six and
07:33
they’re projecting sixteen to eighteen
07:35
million next quarter which will be a
07:37
historic quarter for Zen abyss zeti na
07:42
in Canada on the toronto stock exchange
07:44
it is now graduated to the toronto stock
07:46
exchange look at the way this company is
07:48
growing folks this is a company that’s
07:51
not messing around okay this is a
07:53
company that has a plan
07:55
how you doing JD how you doing human
07:57
resources this is a company that has a
07:59
plan companies don’t plan to fail they
08:04
fail to plan this is a company that has
08:06
a plan and they’re following their plan
08:07
they are underappreciated undervalued
08:10
and under exposed I will not be
08:13
surprised to see that abyss skyrocket I
08:16
will not be surprised to see Zen abyss
08:18
go to five dollars I will not be
08:19
surprised to sees an abyss go to ten
08:21
dollars I will not be surprised since
08:23
then let’s go to twenty dollars I will
08:25
not be surprised to sees an abyss go to
08:27
fifty dollars I will not be surprised to
08:29
sees an abyss go to $100 one day when I
08:32
don’t know I’m an Aquarius I think 50
08:36
years ahead of my time sometimes I’m
08:38
thinking too far ahead I don’t know when
08:40
it’s gonna happen but you know what i
08:42
foreseen I saw this I told you guys the
08:45
revenue we’re gonna grow and it has and
08:48
it will continue to and I believe every
08:51
quarter from now on Zen abyss only gets
08:53
bigger
08:54
is my prediction so with their revenue
08:57
in the range of 16 18 million next
08:59
quarter and net revenue from the
09:01
cannabis business to be in the range of
09:03
10 to 12 million net cannabis revenue is
09:07
subject to the timing of shipments this
09:10
net cannabis revenue does not yet
09:12
include any meaningful impact from the
09:14
production of oil products as the third
09:17
party supply chain for all oil products
09:19
including post processing as a
09:21
considerable amount of time from
09:24
cultivation to realization of revenue
09:26
now they are one of the only companies
09:31
in Canada that has a license to sell
09:33
CBDs the only other company other than
09:36
them is aurora cannabis which has a
09:38
license to sell CBD oil Xen abyss has a
09:42
license to sell CBD oil they are the
09:45
only the second company I know of in
09:47
Canada that has a license to sell CBD
09:50
oil this bodes very well for Zeinab Asst
09:53
the time differential is expected to be
09:55
significantly reduced upon completion of
09:58
post-processing and additional
10:00
extraction capacity adds an abyss Delta
10:03
currently a significant amount of
10:06
existing cannabis inventory is allocated
10:08
to the third party oil processing supply
10:12
chain first quarter 2019 highlights
10:16
completed a reverse takeover the RTO of
10:19
Bevo agro Inc by Sun Pharma Investments
10:23
Limited to become Xena base Global Inc
10:25
On January 8th 2019 and began trading on
10:28
the tsx venture exchange under the
10:30
symbol TSX V under the symbol Xena
10:36
On January 10th 2019 they’re now on the
10:40
TSX that was just January look at how
10:44
fast these guys are moving entered into
10:46
supply arrangements with the provinces
10:48
of Alberta Manitoba Quebec and Prince
10:51
Edward Island expanding Z nobis supply
10:54
arrangements to a total of eight
10:56
provinces and one territory through its
10:59
subsidiary Bevo completed the
11:02
acquisition of top grow Holdings Limited
11:05
which includes ten point four acres of
11:07
greenhouse on 50 acres of land in
11:10
Aldergrove British Columbia added a new
11:14
product line with the acquisition of 51%
11:17
of Hillsboro Corp Inc a kombucha company
11:21
with expertise in the creation of
11:23
cultured tea beverages entered into
11:27
supply agreements with shoppers Drug
11:29
Mart there’s the big one yes they did
11:33
post results these are the results 11.6
11:39
million in revenue up from four million
11:42
last quarter and four million the
11:43
quarter before that this is a huge jump
11:46
in revenue frozen abyss and I predict
11:49
that they will only get bigger every
11:51
single quarter from here on in this is a
11:54
company that everyone needs to put on
11:56
full alert this is a company that
11:58
everyone needs to put on the watchlist
11:59
this is a company that everyone needs to
12:02
put on the radar if you missed out on or
12:04
or cannabis if you missed on canopy
12:06
growth if you missed on áfreeá before
12:08
they ran now you have Zen abyss that’s
12:11
just the fact they’ve got supply
12:15
agreements with shoppers Drug Mart once
12:17
they start supplying Shoppers Drug Mart
12:19
it’s game over received approval to
12:24
cultivate and grow cannabis at its 255
12:26
thousand square foot facility in stellar
12:29
ttan nova scotia with the initial
12:32
licensed area adding design capacity of
12:34
800 kilograms of dried cannabis per year
12:38
obtained a license to process and sell
12:40
cannabis oil products in Canada enabling
12:43
Zen abyss to sell cannabis oil produced
12:46
at its Alphaville
12:48
New Brunswick facility and makes them
12:51
only the second company in Canada to be
12:54
able to sell CBD oil there it is obtain
12:59
a license to produce and sell cannabis
13:01
oil products in Canada enabling Xenakis
13:04
to sell products cannabis oil produced
13:07
at its Alphaville
13:09
New Brunswick facility that is huge I
13:12
can’t explain to you how big that is
13:14
nobody else can sell CBDs in Canada
13:18
other than canopy growth and now Zen
13:21
abyss
13:21
this is going to increase their revenue
13:23
tenfold achieved cultivation output of
13:31
1472 kgs last quarter they did 800 kgs
13:38
11 percent greater than designed
13:41
capacity of 1330 kgs they are out
13:47
producing their design capacity folks
13:50
understand what this news is saying I
13:53
predict Zen abyss is going to explode
13:55
it might not happened today it might
13:58
happen Monday but it’s gonna happen
14:01
achieve cultivation output of 1472 kgs
14:06
when they did 800 kgs last quarter
14:09
achieved financial performance in line
14:12
with ramped up expectations including
14:14
total gross revenues of twelve point
14:17
three million and net revenues of eleven
14:19
point six million after excise taxes
14:23
gross margin before fair value
14:26
adjustment of three point nine million
14:29
operating expenses of eighteen point
14:32
eight million adjusted ebody of six
14:35
point four million net loss of four
14:39
million so anyone that’s shorting a
14:42
stock anyone that wants to be negative
14:43
about this is going to go to the four
14:46
million net loss and saying they still
14:49
showed a net loss of four million
14:50
however when you compare the net loss of
14:55
four million to some of their peers
14:57
which is like in the neighborhood or
14:59
like a ver or cannabis in the tens of
15:02
millions and can it be growth which is
15:06
in like like the hundreds of millions
15:08
when you look at some of the losses that
15:10
some of the behemoths are having and
15:12
then you look at Z nobis 4 million
15:15
doesn’t seem very scary
15:17
considering they just raised twenty five
15:19
million this is a company that’s going
15:22
to be very profitable they’re gonna be
15:24
run very very well I’ve been to their
15:26
facilities I’ve seen them with my own
15:27
eyes look into the developments listen
15:30
to this recent developments since the
15:33
creation of Z nobis via
15:35
January 2019 RTO more than doubled
15:39
licensed production capacity from 6000
15:42
kgs to 13,000 400 kgs as of May 30th
15:47
2019 so they can do 13,000 kgs they just
15:51
only did 1300 they’re gonna be able to
15:55
do 10 times their capacity what is that
15:59
going to mean for revenue that means the
16:03
revenue is gonna grow by 10 times when
16:05
we see Zen abyss report a hundred
16:08
million in a quarter instead of 11
16:12
million what do you think it’s gonna
16:14
trade at JD says but like you said in
16:23
the short term they may be fundraising
16:24
so every bump might have that sell-off
16:29
absolutely I mean every one of these
16:32
companies in the early stages they’re
16:33
focused on raising money because they
16:35
need the money to grow their facilities
16:38
the thing about Zen abyss that’s
16:39
different is they already have the
16:40
facilities they don’t need to acquire
16:42
facilities they don’t need to acquire
16:43
anything they are a behemoth on their
16:47
own
16:48
they don’t need to go and use stock to
16:50
go and acquire their growth like we’re
16:52
seeing aurora cannabis do they don’t
16:54
need to go and use cash and stock to
16:56
acquire their growth like we’ve seen
16:57
canopy growth do they are just a
16:59
behemoth they’re enormous on their own
17:03
that is a huge advantage they do need
17:06
cash so there is going to need to be a
17:09
spike in the stock at some point so they
17:12
can raise another 50 million I believe
17:14
we see that bike the next time we see a
17:17
huge explosion in the cannabis sector
17:19
we’re going to see Zen of his way higher
17:22
I’m telling you we’re gonna see Zen of
17:24
his way higher I’m predicting it right
17:28
now Reid why delivered 31% out
17:32
performance relative to cultivation
17:35
design capacity in April with
17:37
cultivation output of 809 kgs 63 percent
17:42
greater than our forecast of 495 kgs
17:47
these numbers are only gonna get bigger
17:49
folks these numbers will only get bigger
17:51
and these numbers will only get better
17:53
mark my words these numbers are nothing
17:56
compared to what they’re gonna be doing
17:57
these numbers will only get bigger and
17:59
these numbers will only get better
18:01
receive the license approval for phase
18:04
2a at the Alphaville facility adding
18:08
3,200 kgs or more than 30% to Zenit
18:12
misses total cannabis cultivation
18:13
capacity do you see the growth it’s all
18:16
about growth here continued construction
18:19
and licensing activity at both its
18:21
Alphaville and Langley facilities with
18:24
forecast annual production capacity up
18:27
131 thousand 300 kgs by the end of the
18:31
third quarter of 2019 do you see how
18:34
this number is going to grow they only
18:37
reported 1,000 kgs and they made 11
18:42
million dollars imagine when they start
18:46
doing a hundred and thirty one thousand
18:48
kgs can you what is that like a hundred
18:51
and thirty one times more revenue can
18:55
you just imagine what this is gonna mean
18:57
that’s gonna put them in like that’s
19:02
gonna put them at like the hundred
19:03
million a quarter mark that’ll put them
19:08
one hundred and thirty one thousand kgs
19:10
will put them at like the billion mark I
19:13
think that’s about 1.3 billion that’s
19:18
how much money these guys will be making
19:19
and it’s not that far away we’re talking
19:23
about third quarter of 2019 being at a
19:26
hundred and thirty one thousand three
19:28
hundred kgs
19:29
that is mind-boggling mind-boggling the
19:34
numbers they’re reporting the results
19:36
that they are producing are nothing this
19:39
is the tip of the iceberg I went to
19:41
their facilities they told me that the
19:43
facilities that they have right now
19:44
that’s just their testing grounds that’s
19:47
their testing facilities they were
19:48
testing how to grow in all the small
19:50
facilities so that they can grow in
19:52
their big facilities which the big
19:54
facilities that are coming on board is
19:56
the Langley facility and they have
19:58
got their license for the Langley
20:00
facility yet they’re gonna be getting
20:01
that any day any day from now they’re
20:05
gonna get their Langley license which is
20:07
a two million square foot facility once
20:10
they get that two million square foot
20:12
facility it’s game over they’re one of
20:14
the biggest players in the world they’re
20:17
up there with the big three they’re at
20:19
that point up there with canopy growth
20:21
and Aurora cannabis that’s how BIG’s an
20:25
abyss has the opportunity to be and here
20:27
we are talking about a stock that’s out
20:29
$1 in Canada and America it’s at a buck
20:33
and they have the chance to be on the
20:36
same level playing field as Aurora
20:39
cannabis and cannabis listen to this
20:44
expanded recreational cannabis product
20:46
offerings to include pre-rolled products
20:49
under a new ultra premium brand called
20:52
blazer II as well as pre-roll and oil
20:56
products under the existing recreational
20:58
brand
20:59
Namastey don’t be confused that is not
21:03
namaste technologies they have a brand
21:05
called namaste it’s one of their brands
21:09
it’s one of their products entered into
21:13
a bill a binding term sheet for a
21:15
three-year supply arrangement with
21:17
leading German pharmaceutical research
21:19
company pharmaco GmbH so they’re also
21:23
focused on Germany they’re not just
21:27
focused on Canada folks they’re focused
21:30
on Germany these guys want to be global
21:33
global for the supply of biosynthetic
21:37
lee produced pure CBD isolate oil 99.9%
21:44
from farm our co2 Zen abyss for sale in
21:47
Canada ninety-nine point nine percent
21:52
THC free can you believe that
21:56
that’s pretty high that’s as high as
22:00
I’ve ever seen from
22:04
Marco to Zen abyss for sale in Canada
22:06
and the supply of European Union good
22:09
manufacturing practices certified
22:12
cannabis cultivation in Xena best indoor
22:14
facilities in Canada for sale by firm
22:17
Marco to the German medical market Wow
22:24
Xen abyss you are a giant I love you Zen
22:29
abyss I have my 10,000 shares I want
22:32
more I want more could we see a dollar
22:37
40 again could we see a dollar 50 again
22:39
I want more can I get some more could
22:43
your boy get some more zenefits Zen
22:46
abyss if you guys are watching could I
22:47
like invest directly into the company
22:49
maybe at a discount is that possible
22:52
probably not right considering everyone
22:56
just bought at 225 for 25 million
22:59
dollars all the high net worth investors
23:01
that got in got in at 225 guys and we’re
23:05
sitting here around 170 like are you
23:07
kidding me you want to talk about an
23:11
undervalued underappreciated
23:13
underexposed behemoth I can’t find
23:16
anything wrong with zen of us graduated
23:19
to the Toronto Stock Exchange they just
23:21
graduated to the Toronto Stock Exchange
23:22
that’s the big boards in Canada that’s
23:25
the big boys in Canada guess what’s next
23:27
the New York Stock Exchange or the
23:29
Nasdaq that’s next they just graduated
23:34
from the TSX from the TSX v effective on
23:37
May 27 2009 teen with the company’s
23:40
common shares and common share purchase
23:42
warrants continue to trade under the
23:44
symbols Xena and Xena WT respectively
23:49
summary first quarter 2019 financial
23:52
results thank you guys for the likes
23:54
thank you guys for being here we are
23:55
talking about Zen abyss ze
23:58
na in Canada Z B is F in America and
24:01
their financial results for q1 2019
24:05
reporting eleven point six million in
24:07
revenue after reporting four million
24:10
last quarter four million the quarter
24:12
before that watching the stock plummet
24:14
from 6.85 cents when it
24:18
or did 16 million in revenue in q2 2018
24:22
went down after reporting four million
24:24
and then four million and now we’re
24:26
going back up in revenue at eleven point
24:29
six million will the stock go back up I
24:32
say yes could there be a consolidation
24:35
still could we see lower prices
24:36
absolutely but I believe long term we
24:39
see the stock go higher let’s talk about
24:43
the summary of the first quarter all
24:45
amounts unless specified otherwise are
24:48
expressed in Canadian dollars and are
24:49
presented in accordance with
24:50
international financial reporting
24:52
standards as issued by the International
24:55
Accounting Standards Board applicable to
24:59
the repression of interim financial
25:01
statements including IAS 3 for interim
25:04
financial reporting for the quarter
25:07
ended March 31st 2019 Zeinab is recorded
25:11
net revenues of eleven point six million
25:13
which was comprised primarily of 4.1
25:16
million and 7.5 million in cannabis and
25:20
propagation segments respectively less
25:23
intersegmental
25:27
300,000 comparatively in the three
25:30
months ended December 31st 2018 well
25:34
that’s a pretty huge jump company
25:37
recorded net cannabis revenues of 3.4
25:40
million and in the three months ended
25:43
March 31st 2018 the company had not yet
25:47
begun cannabis sales like I’m telling
25:51
you guys these guys are just getting
25:52
started nobody even knows nobody even
25:55
knows gross margin before their fair
25:57
value adjustment totalled 3.9 million
26:00
during the three months ended March 31st
26:03
2019 and includes 2.1 million and 1.6
26:07
million in cannabis and propagation
26:09
gross margin respectively before fair
26:12
value adjustment 51 percent and 21
26:15
percent as percent of net revenue by
26:18
segment respectively comparatively in
26:21
the three months ended December 31st
26:22
2018 zeinab is recorded a cannabis gross
26:26
margin before fair value adjustment of
26:29
1.7 million they
26:31
the percent of net revenue total
26:34
operating expenses for the quarter ended
26:36
March 31st 2019 were 18 point 8 million
26:40
of which four point nine million were
26:43
acquisition costs which compares to
26:46
twelve point seven million in the three
26:49
months ended December 31st 2018 gain on
26:53
the revaluation of derivative liability
26:55
was seven point nine million into 2019
27:00
first quarter compared to a loss of
27:04
thirteen point 1 million for q4 2018
27:08
that is massive that is absolutely
27:11
massive some good questions just came in
27:17
ll says how do you know a stock is at
27:20
the bottom to accumulate you never know
27:21
a hundred percent I mean that’s why you
27:25
have to watch it if you’re buying a
27:27
stock at a 52-week low you’re giving
27:29
yourself a chance to buy at the bottom
27:30
that’s kind of the best way to determine
27:32
it however sometimes it creates a new 52
27:35
week low so you have to watch it you got
27:37
to watch its news you have to try to
27:39
determine why it’s down and you have to
27:41
try to be very careful when you’re
27:43
investing in stocks but if you’re
27:45
looking for a 52-week low that’s
27:47
typically the bottom when I’m charting a
27:50
stock I always chart the low low which
27:52
is it which is the 52-week low and I
27:54
always chart the high high which is the
27:56
52-week high so the bottom is typically
27:58
the 52-week low unless they’re going to
28:00
create a new bottom which right now in
28:02
the cannabis sector I believe we’re
28:04
going to see a downtrend over the next
28:06
month so we’re going to see a lot of low
28:08
lows I don’t believe that that is going
28:10
to be indicative what we are going to
28:12
see when the market gets hot again I
28:14
think once you see the market get hot we
28:16
see a lot of these stocks explode but
28:18
right now there is a lot of selling
28:20
pressure a lot of people are selling and
28:23
going away for vacation a lot of people
28:24
are panic selling a lot of short traders
28:26
are coming into the market right now and
28:27
they’re heavily shorting these stocks as
28:29
well so I believe we’ll continue to see
28:32
that going into June but as of July and
28:35
August 1 a table’s is getting legalized
28:39
around the corner in Canada cannabis
28:41
starts to get more and more legalized in
28:43
America
28:44
starts to become more and more
28:45
mainstream which it continues to happen
28:48
every single day I believe we see these
28:51
stocks explode again and when they do
28:53
explode you’re gonna see Zen abyss
28:55
explode you will see canopy growth
28:57
explode you will see a roar cannabis
28:59
explode
29:00
you will see a free explode you will see
29:02
the hmm Jay ETF explode that’s just the
29:05
way it goes that’s just the way it goes
29:17
which was a result of fluctuations in
29:20
the company’s share price share based
29:22
compensation was 2.1 million in q1 2019
29:26
compared to 4.6 million in q4 2018 so
29:30
all of these financials are moving in
29:32
the right direction share pays call
29:35
share based compensation is going down
29:38
seems like their losses are going down
29:41
quarter by quarter due to various
29:44
options that were vested on an
29:45
accelerated basis in the previous
29:48
quarter which was not the case in the
29:50
current quarter finance and investment
29:53
income was 1.1 million in q1 2019
29:56
compared to a loss of 1.9 million in q4
30:00
2018 that is positive due to an increase
30:05
in the market value of investments held
30:07
by the company offsetting these amounts
30:10
were 4.9 million in first quarter 2019
30:13
acquisition costs related to the RTO and
30:16
other business acquisition transactions
30:18
compared to 70 4900 in q4 2018 so a lot
30:24
of their losses were due to the RTO
30:26
because you have to remember they took
30:28
these huge greenhouses and acquired them
30:32
and now they’re going to be turning
30:34
green houses into cannabis space so the
30:38
owners of those green houses got a bunch
30:40
of shares and they did an RTO and they
30:44
are just formulating this huge company
30:46
so everybody’s getting their shares
30:48
everybody’s getting shares deposited
30:51
and this company is just getting started
30:53
guys I’m telling you this company is
30:55
just getting started
30:57
this company is just getting started
31:00
which was due to additional debt the
31:03
company issued or assumed in late q4
31:05
2018 and q1 2019 and depreciation and
31:10
amortization of 1.5 million in q1 2019
31:15
compared to 0.3 million 300,000 in q4
31:19
2018 which was primarily the result of
31:22
the various facilities being ready and
31:24
available for use these numbers will
31:27
only get better adjusted Ibarra has
31:30
continued to show a loss due to the
31:33
operational costs incurred by Zen abyss
31:35
to build out its operational capacity to
31:38
achieve the planned production capacity
31:40
of its various facilities adjusted
31:42
Ibarra has not improved in comparison to
31:45
the 3 months ending December 31st 2018
31:47
due to the increase in operational costs
31:50
which are primarily due to the
31:52
development and implementation of the
31:54
resources and capacity needed by the
31:56
Cannabis segment to support the
31:58
facilities under construction that we’ll
32:01
be producing in 2019 so this is what
32:04
they’re talking about Health Canada has
32:06
all kinds of crazy rules and regulations
32:08
they gotta have fences they have to have
32:10
a vault they have to have like
32:12
everything has to be so tight the
32:15
standards have to be so high for this
32:17
cannabis when I went into their
32:19
facilities and I was making videos I
32:21
couldn’t touch anything I had to be
32:23
wearing like full garbs plastic over my
32:26
feet or my shoes plastic over my head
32:29
plastic over my hands
32:30
like it’s crazy guys what these guys are
32:33
doing this is all Health Canada putting
32:36
implementations in place so that their
32:39
crops don’t get any pesticides don’t get
32:43
any infections don’t get any diseases
32:45
and don’t harm any people any customers
32:49
obviously that would be a huge negative
32:51
we saw that happen to AG anagram an
32:54
organic gram went from 2 bucks under $2
32:57
in 2017 because they had pesticides in
32:59
their crops two years ago now we see
33:03
Organa gram been trading over $10 and I
33:05
told you guys when they were trading
33:06
under $2 and they were getting destroyed
33:08
by the public and the sentiment was very
33:11
negative that they were a great company
33:13
and it was a buying opportunity and I
33:16
was correct about her diagram I’m
33:18
predicting that Zen abyss is like organa
33:20
gram like canopy growth two years ago
33:23
like aurora cannabis two years ago they
33:25
are just getting started
33:26
they’re just getting started okay the
33:36
additional expenses are partially offset
33:38
by the increase in sales and margins
33:40
realized through the company’s cannabis
33:42
and propagation segments first quarter
33:44
2019 adjusted Ibarra was 6.4 million
33:48
compared to 6 million in q4 2018 the
33:52
company recorded a net loss for the
33:54
three months ended March 31st 2019 of 4
33:57
million or 0.02 loss per common share
34:01
compared to a net loss of twenty four
34:04
point nine million or 0.16 loss per
34:08
common share for the three months
34:11
December 31st 2018 whoa let’s just stop
34:15
right there that’s big so they had a net
34:20
loss last quarter of twenty four point
34:22
nine million they only had a four
34:24
million net loss this quarter I’m
34:30
telling you guys this is gonna blow this
34:33
is gonna blow this is gonna blow so hard
34:35
guys it’s gonna blow
34:38
cash on hand increased the twenty five
34:40
point six million as of March 31st 2019
34:44
from 17 million as of December 31st 2019
34:49
the increase in cash was mainly
34:52
attributed to cash received from
34:55
financing of fifty six point six million
34:59
offset by cash used in operating
35:02
activities of seventeen point six
35:05
million and investing activities of
35:07
thirty point three million Xenakis guys
35:13
are putting out some big investments out
35:15
there thirty point three million eight
35:19
let’s just read a little bit about
35:21
cinemas Zen abyss is a significant
35:24
Canadian licensed cannabis cultivator of
35:26
medical and recreational cannabis and a
35:29
propagator and cultivator of floral and
35:31
vegetable products that’s what they used
35:33
to be flowers and vegetables they’re
35:37
converting millions of square feet from
35:40
flowers and vegetables to cannabis they
35:46
don’t even have their license for their
35:48
Langley facility yet which is two
35:50
million square feet once they get that
35:52
license it’s game over it’s game over
35:56
and I’m gonna try to go to their
36:00
facilities and make another video when
36:02
they get that license so I can show you
36:04
guys the difference between flowers and
36:06
cannabis and a two million square foot
36:09
facility filled with cannabis now I
36:11
won’t let you guys know I have not been
36:16
compensated by Zen abyss in any way
36:18
shape or form for this video for any
36:20
video just so you guys know I am a
36:22
shareholder of Zen abyss I own ten
36:25
thousand forty five shares of Zen abyss
36:26
I believe that this company is a
36:29
sleeping giant based on my experience of
36:32
watching companies explode like village
36:34
farms there remind me a lot of village
36:37
farms they also remind me a lot of
36:38
canopy growth they also remind me a lot
36:41
of vogue anagram and they arrive me a
36:43
lot of aurora cannabis in a lot of ways
36:45
so i believe these guys are just getting
36:48
started and let’s just read about it
36:51
Zen abyss employ staff coast-to-coast
36:54
across facilities in Alphaville new
36:57
brunswick delta Aldergrove Pitt Meadows
37:02
and Langley British Columbia and Stelter
37:05
Dinh Nova Scotia in addition to gaining
37:10
technology technologically advanced
37:13
knowledge of plant propagation the
37:15
recent addition of state-of-the-art
37:16
greenhouses in Langley that’s the one
37:19
I’m waiting on guys two million square
37:21
feet of growing capacity once they get
37:24
Langley on board that license is coming
37:26
in q2 that’s like any day that’s in the
37:30
next month they’re gonna have that
37:31
license
37:32
News is gonna skyrocket this stock state
37:38
of the they recently edition of
37:42
state-of-the-art greenhouses in Langley
37:44
Pitt Meadows and alder Grove provides
37:47
Zen abyss with 3.5 million square feet
37:50
of facility space that can upon full
37:53
conversion be dedicated to cannabis
37:55
production 3.5 million square feet 3.5
38:02
million square feet they don’t need to
38:04
build it it’s built they just need to
38:09
take the flowers out and put the
38:11
cannabis in that’s it it’s gonna be so
38:15
big this will be a billion dollar
38:18
company I’m gonna predict that this will
38:20
be a billion dollar company it will have
38:22
a multi-billion dollar market cap and
38:24
they will make billions of dollars in
38:26
revenue and to get into a company that’s
38:29
trading at a dollar 70 that’s gonna be
38:32
making billions of dollars of revenue is
38:34
a little bit mind-boggling listen to
38:36
this
38:37
how you doing Dylan good morning if all
38:40
facility space at Zeinab is Alphaville
38:42
Zeinab is stellar ttan zeinab is Delta
38:46
and zeinab is Langley is fully converted
38:49
and dedicated to production Zen abyss
38:52
will own and have access to six hundred
38:54
and sixty thousand square feet of
38:57
high-quality indoor cannabis production
39:00
space listen to this as well as are you
39:04
ready for this are you ready for this as
39:11
well as
39:13
2.1 million square feet of greenhouse
39:18
cannabis production space at its Langley
39:21
facility which it doesn’t have a license
39:23
for yet and it’s going to be getting in
39:26
the next month hello anybody home
39:34
anybody home Zen abyss we have a winner
39:39
folks we have a winner we have
39:42
identified another winner I’m telling
39:46
you guys right now I challenge any
39:49
youtuber any youtuber you don’t think
39:54
Zen abyss is gonna go up I challenge any
39:57
youtuber anybody please comment I want
40:03
to know a few things n if this is gonna
40:04
go down I want to know what anybody
40:08
thinks an abyss is gonna go down with
40:11
this growth capacity long term does
40:14
anybody see Zen abyss going down long
40:18
term knowing that they’ve got a 2.1
40:22
million square foot facility in langley
40:24
which i’ve been to and i’m gonna go
40:27
there again once it’s filled with weed
40:29
okay I’m gonna go there your boy will go
40:32
there okay mark my words when it’s
40:35
filled with we now I want to show you
40:38
what’s what 2.1 million square feet of
40:44
wheat plus another 600,000 square feet
40:48
of wheat dam with this production
40:57
strategically positioned on canada’s
40:59
coasts zen abyss expects these
41:02
facilities to have it an annual design
41:04
capacity of a hundred and thirty one
41:07
thousand three hundred kgs of dried
41:10
cannabis by the third quarter of 2019
41:14
um we’re four months away from that
41:17
we’re four months away from them going
41:21
from 1,400 kgs to a hundred and thirty
41:27
1,000 kgs oh my goodness they’re going
41:39
from doing 800 kgs to doing 1,400 kgs to
41:49
doing a hundred and thirty one thousand
41:52
kgs a hundred and thirty one thousand k
41:58
jeez it gets better
42:07
that’s by the third quarter of 2019 are
42:11
we not in 2019 are we not in the second
42:14
quarter is the second quarter not almost
42:17
done does that not mean they’ll be at a
42:20
hundred thirty one thousand kgs in the
42:24
next month two months three months four
42:27
months max so you’re at 1300 1400 kgs
42:31
you did 800 kgs then you went up to 1400
42:34
and now you’re going up to a hundred and
42:36
thirty one thousand kgs does that mean
42:39
that your revenue is gonna go up to like
42:40
oh I don’t know a billion a quarter it
42:46
does that mean that is their revenue
42:50
gonna go up to like a billion a quarter
42:51
a billion a year I can’t even do the
42:57
math it’s so big oh my goodness check
43:04
this out
43:05
it gets better the
43:08
facilities if built out and converted
43:12
for cannabis production would have an
43:14
annual design capacity to yield
43:17
approximately four hundred and seventy
43:21
nine thousand three hundred K G’s of
43:25
dried cannabis annually four hundred and
43:29
seventy nine thousand kg s
43:33
what what what four hundred and seventy
43:44
nine thousand kgs which means they would
43:48
be making four hundred and seventy nine
43:51
times more money than they are right now
43:57
they just made eleven million what’s
44:00
four hundred and seventy nine times
44:03
eleven million can you guys even do that
44:06
math what is that is that five hundred
44:10
million a quarter or is that five
44:14
hundred million a year one hundred and
44:17
twenty five million a quarter like it’s
44:23
mind-boggling four hundred seventy nine
44:28
thousand four hundred seventy nine
44:30
thousand let that sink in three hundred
44:32
four hundred seventy nine thousand three
44:36
hundred kgs per here right now they’re
44:42
reporting on fourteen hundred they’re
44:46
reporting on fourteen hundred kgs
44:48
they’re going to be doing four hundred
44:50
and seventy nine thousand kgs per year
44:55
and they’re making eleven million on
44:58
fourteen hundred can anybody do
45:03
not for me like that’s a big number what
45:07
will their revenue be at four hundred
45:10
and seventy nine thousand kgs per year
45:13
if they’re making eleven million right
45:16
now on fourteen hundred what would they
45:18
be making on four hundred and seventy
45:22
nine thousand kg a year it’s got to be
45:26
five hundred million a year my simple
45:31
math which is just ridiculous that’s a
45:34
big number that’s a really big number is
45:37
it is it five billion or five hundred
45:40
million I don’t even know I just know
45:42
they’re gonna get way bigger I can’t
45:45
even imagine one day if this stock was
45:47
to like a hundred bucks and my ten
45:48
thousand shares is worth a million
45:49
dollars Oh a man could dream an investor
45:54
can dream can’t we we can dream we’re
45:58
allowed to dream a man could put on a
46:00
suit and dream it’s a lot of zeros right
46:04
Dylan but this gets better for both
46:09
national and international market
46:11
distribution so they can they’ll be able
46:14
to produce four hundred and seventy nine
46:16
thousand kgs so they can produce it
46:20
nationally and internationally with
46:22
licenses to ship it to Germany and all
46:26
across Canada coast-to-coast
46:28
these guys already set up they’re good
46:30
to go and Germany can then ship out to
46:35
the rest of Europe oh my goodness do you
46:39
understand what these guys are going to
46:40
do it gets better an additional 700
46:48
thousand square feet of greenhouse space
46:49
will be used to continue the existing
46:51
propagation business and produce
46:53
industrial hemp and can be converted to
46:56
cannabis production at such a time that
46:59
is beneficial to the strategic position
47:01
of the company the Zeinab is brand name
47:03
is used in the cannabis medical market
47:06
while the NAMM estate and blazer e brand
47:08
names are used in the cannabis I don’t
47:11
use recreational market and the true
47:14
buck brand name is used for
47:16
Zen abyss kombucha products so this is
47:24
the news on Zen abyss I think is
47:27
extremely positive news the whole market
47:29
is selling off globally today okay
47:32
Zen abyss in the beginning was up I
47:34
don’t really know what they’re trading
47:36
at right now I don’t really even care
47:37
I’m worried about where they’re gonna be
47:39
down the road if this bad boy goes lower
47:41
I’m gonna buy more I’m gonna keep you
47:43
guys updated I’m gonna keep talking
47:44
about Xena
47:45
until we see this bad boy go to five
47:47
bucks and until we see this bad boy go
47:49
to ten bucks until we see this bad boy
47:51
go to 20 bucks until we see this bad boy
47:53
go to 30 bucks until we see this bad boy
47:55
go to 40 bucks and then beyond and
47:57
Beyond and Beyond and beyond because
47:59
guess what they don’t need to use their
48:02
stock to acquire their growth there are
48:05
radio behemoths on their own I think
48:09
they have a chance to be the biggest and
48:10
the best in the entire sector remember
48:14
who told you about Zen abyss first it’s
48:17
your boy rich from rich to be live if
48:19
you’re not winning you’re probably not
48:20
watching we bring you the winners we
48:22
bring them to you first we bring them to
48:24
before they explode we bring them to you
48:26
while they explode we bring them to you
48:29
after they explode we analyze it we
48:31
break it down and we invest in the
48:34
markets to in fact we got a CBD brand
48:38
called rich hemp rx in Phoenix Arizona
48:41
and if you like to get into the CBD
48:43
space holler at your boy
48:46
we can get you CBDs in America if you
48:50
want to buy them for yourself if you
48:51
want to be distributor if you’re looking
48:53
to open up a business in America if
48:55
you’re in Europe and you would like to
48:57
get into the CBD business holler at your
48:59
boy we’ve got members all over the world
49:01
hollering at us wanting to get into the
49:03
CBD space you can get into the CBD space
49:06
too I’m a boat right now just so you
49:09
know I’m just wearing a suit I’m about
49:11
to go meet with a cannabis company that
49:13
does a cannabis show and they want to
49:15
work with rich TV live so stay tuned um
49:21
I’m waiting
49:23
you’re watching and we owe Zeinab is I
49:27
got ten thousand forty five shares let’s
49:29
go Xena Warrior Princess we’re talking
49:32
about in our telegram
49:33
we love our Xena and you know what we
49:35
love stocks when they’re behemoths and
49:37
we can buy them cheap oh yeah another
49:40
company that I’ve been talking about
49:41
enthusiast gaming yeah my number one
49:43
pick of 2019 they’ve been a giant they
49:46
had big news today they were up
49:48
enthusiast gaming put on your watchlist
49:50
put on your radar another giant it’s not
49:52
a it’s not a weed stalk it’s a gaming
49:55
stock but I’m telling you enthusiast
49:57
gaming is going to be a giant this is
50:00
your boy rich from your stevie live we
50:02
oh peace Zen abyss zeti na in Canada ZB
50:08
is F in America it’s a giant you can be
50:14
a giant to invest in the best stay in
50:17
your lane invest in the best because you
50:19
deserve it it’s true peace
 
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