Why did CBUS's operating expenses surge in Q4 2024?

Cibus Inc.'s operating expenses surged in Q4 2024 due to several strategic initiatives and operational changes: 1. **Acquisitions of Grocery Stores**: Cibus Nordic Real Estate, a subsidiary of Cibus Inc., acquired 34 grocery stores in Scandinavia across separate deals amounting to €127.2 million. Additionally, they reached an agreement to buy a portfolio of 31 grocery stores in Denmark for approximately €118 million. These acquisitions were financed with a combination of own funds and bank loans, indicating a significant upfront financial commitment. 2. **Financing Costs**: The company planned to maintain a loan-to-value ratio of around 50% for the acquisitions. This means that the cost of financing these acquisitions would have been substantial, contributing to the increase in operating expenses. 3. **Divestitures**: Cibus also divested a Coop grocery store in Ängelholm, Sweden, for €1.7 million. While this transaction might have been neutral or even positive in the long term, the process of divesting assets could have incurred additional expenses in Q4 2024. 4. **Real Estate Market Activities**: Cibus has been actively involved in the real estate market, purchasing and selling grocery stores. These activities, especially the purchase of multiple properties, would have led to increased operating expenses such as property valuation costs, transaction fees, and potential restructuring costs. In summary, the surge in operating expenses in Q4 2024 was likely driven by the costs associated with acquiring new grocery stores, financing these acquisitions, and the divestiture of existing properties. These strategic moves are likely to have a significant impact on the company's short-term finances, but they may also position Cibus for future growth in the grocery retail sector.