Back when LDS was hitting the market initially last year, one of the big selling points CEO Brad Eckenweiler threw at me, over several liquid lunches, was that the company was making money, had everything set to make tons more, and would be raising cash just that one time in support of its RTO – and never would again after that.
We were told in that raise that $5 million in offers had been booked on a $500k raise and that demand was furious.
When I asked the CEO why he wouldn’t take all the money, he said, “We don’t need it. It would just dilute the stock,” adding, “Not only that – we won’t be raising money again in the future. This is the only chance to get in on an LDS PP.”
Well, when the stock went public, it nosedived, indicating all that pent up demand being talked of was utter bullshit. And LDS has since raised more money, again and again, and again, diluting the stock in an effort to keep the lights on while doing none of the things it said it would, with none of the people it said were lined up, and no dollars coming in for months.
In fact, it went out and borrowed money recently, right around the time it gifted its execs $0.12 options (today’s raise is at $0.18, while the share price is up to $0.26).
However, LDS’ share price has been moving up of late, and thus it’s doing what most smallcap companies do when the stock price has an uptick – it’s taking advantage, raising a million-plus.
The bigger question must be.. why? Sure, the Cannastrips concept it owns (basically breath strips with cannabis oil) is sexy, but is the company admitting that it bullshitted it’s way through it’s RTO? Or did the CEO just make several humongous claims that it turned out – accidentally – weren’t backed up by fact? Will there be more raises going forward? Will those people who got suckered initially be given first crack at a chance to be made whole?
And while we’re at it.. outstanding marketing invoices, where does a brother go to have those sorted out?
It’s weird to see LDS up when it has been such a public shitshow for most of its life.
Then again, grifters rarely quit grifting.
— Chris Parry