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Why TRTC is not your typical penny stock:
There are some, ATTBF has opened a Lab there.
http://finance.yahoo.com/news/abattis-phytalab-grand-opening-washington-131600826.html
Do you know any good mj stocks related to washington?
The whole sector is going to pop When July 8th comes. I would go with the sector leaders and some stocks that are related to Washington.
http://www.spokesman.com/stories/2014/jun/25/first-washington-marijuana-shops-could-open-july-8/
Marijuana stocks should go up big in couple weeks with washington going on line. Any good,real stocks with a good DD ready to pop?
SNMN This looks good. Not many .0001's left now. Gonna fly anytime!!!!
TRTC, in Walmart, it does not get any better than that...Revenues will be huge, they will blow rev. estimates away this year.
Go $TRTC ! Management is continuing to deliver AND MORE! That's what investors want to see.. Follow through AND pleasant surprises
Well there are plenty more that do so take your crap and skeedaddle.
FSPM made me alot of money and their not out of it yet only wounded by the SEC BS.
glta Longs
I'm not short just a fspm n phot investor who doesn't believe in penny stocks anymore
Hope you go broke shorty. Picked the wrong stock to short. Better run for the hills before you go bankrupt. Actually I hope you do go bankrupt....
hehehehehehe
glta Longs
All about Edible gardens http://eatherbs.com/?page_id=78
Edible Garden is a wholly owned subsidiary of Terra Tech Corp OTC:TRTC and operated by the VandeVrede family, who has a rich history of Dutch Farming. http://eatherbs.com/
https://www.facebook.com/ediblefarms
https://www.terratechcorp.com
Edible Garden's Brand of Locally Grown Produce Is Now Available at Walmart and Stew Leonard's
http://www.otcmarkets.com/stock/TRTC/news
What do you think about our new EG trailer design?
https://www.facebook.com/terratechcorp?hc_location=timeline
New trailers for big contracts like Kroger, whole foods or Costco?
TRTC produce in Walmart now.
Inside 5 acre facility in NJ
TRTC announces Walmart as new retailer for their line of living produce. That's right - Walmart. Huge!
A must read post by sleek
sleekscape Member Level Tuesday, 06/24/14 01:15:29 AM
Re: None
Post # of 60198
2015 Revenue Projections = $50M - $100M
Only FACTS in this post, read below:
Revenue projections for 2015 are going to be $50-$100 million
“The odds are better that we end up with just a cultivation facility,” Peterson said. “That’s where we think we have a strategic advantage.”
Peterson envisions a 30,000 square-feet to 50,000 square-feet cultivation plant, for which the company budgeted $3 million. A production facility could cost about $1 million, he said, while a retail store could cost between $500,000 and $700,0000, plus another $100,000 for security.
The company picked out real estate for a dispensary near Desert Inn Road and Decatur Boulevard, in order to be close to the local population and a short distance from the Strip and downtown Las Vegas.
Here’s how Peterson breaks down the figures: a 50,000 square foot cultivation facility, with a staggered growth schedule, could produce 50 to 75 pounds of marijuana a week.
In other markets where marijuana is legal, the plant sells for $2,500 to $3,000 per pound at wholesale. That’s upward of $225,000 per week for a cultivation facility. Dispensaries then sell at about $5,000 to $7,000 per pound to the public, which means the dispensary would have to sell about 4,000 pounds a year at $5,000 per pound to earn $20 million.
Here's the math:
1 cultivation facility = $12,000,000
1 dispensary = $20,000,000
That is $32,000,000 in revenue in 1 year for just 1 cultivation and 1 dispensary.
What about Edible Garden ($12-$15 million in 2015)?
That is $44,000,000 - $47,000,000 of revenue in 2015.
This is reality!
Only facts!
Here is some logical speculation:
What about 3-4 cultivation facilities?
What about 3-4 dispensaries?
What about 3-4 production facilities?
What about selling hash oil pen vapes at $50 each like OpenVape?
What about the CBD supplements?
That is another $50,000,000 in revenue right there.
This is speculation, but very logical speculation.
If you cannot speculate, you shouldn't even be in the stock market.
Current revenue projections for 2014 are $7,000,000.
What do you think will happen to TRTC stock price when it announces revenue projections for 2015 of $50,000,000 - $100,000,000?
Wake up people, this stock is not going to move slowly and be $1 by end of year.
This is a $5-$10 by end of year and and $50 stock next year on the Nasdaq.
Here is some more logical speculation:
Do the math for 2016 and we are talking $200-$400M
Remember, 1 dispensary = $20M, 1 cultivation = $12M and 1 production = $10M (very conservative estimate because hash oil pen vapes are huge money and CBD supplements should be huge money)
So, TRTC revenues for a single dispensary, cultivation and production = $42M
If they have 5 of each in 2016 = $200M
If they have 10 of each in 2016 = $400M
By 2017/2018, we are talking Billions of Dollars!
And this is not accounting for recreational marijuana sales, only medical marijuana sales.
Have some vision!
All weak longs with no vision -- these are FACTS!
This is not pumping, this is REALITY!
Sleek
TRTC secures Permit for a Medical Cannabis Cultivation and Production Facility in Clark County NV
http://finance.yahoo.com/news/terra-tech-subsidiary-medifarm-llc-200100592.html
TRTC secured two MJ permits out of Nevada the commissioners decided to give TRTC a cultivation and a production permit. The whole community was in support of TRTC.
Here is the actual video of commissioners
$SNMN ~~ ~~ Next MARIJAUNA/ CANNABIS Monster Runner
This stock will be halted too it's just a matter of time
Sleekscape's Newest Video:
The Penny Stock Market and TRTC's place in it
QEDN , pics of current crop.
http://www.emeraldmedfarms.com/#!current-crop/cvyn
EVRVD is now BLPG, I do think the security MJ stocks are being overlooked, it will be a huge Part of sector compliance with government wanting to track everything.
I like DIRV ,HSCC and BLPG at these low levels, they are all the top players in MJ security.
http://stockcharts.com/freecharts/candleglance.html?DIRV%2CHSCC%2CBLPG
TRTC secures Permit for a Medical Cannabis Cultivation and Production Facility in Clark County NV
http://finance.yahoo.com/news/terra-tech-subsidiary-medifarm-llc-200100592.html
TRTC secured two MJ permits out of Nevada the commissioners decided to give TRTC a cultivation and a production permit. The whole community was in support of TRTC.
Here is the actual video of commissioners
Greens12 EGRVD is not a competitor to DIRV. EGRVD is more physical security as in security guards, guns, armored transport vehicles.
DIRV is surveillance systems required by mj compliance laws. DIRV security is in the form of camera systems, accesses control, video monitoring etc.
They could actually work together as a more complete mj security surveillance package.
DIRV competition is HSCC if you want to call it that. DIRV's CEO is aggressively going after mj business. Some of his customers are the NYPD and Trump Towers, resort and the Donald's personal residences.
DIRV was chosen by Canna Pods/Ponic Pods. Canna Pods offered HSCC a chance. They were briefly in GRA alliance with HSCC. I guess HSC couldn't deliver what they needed. DIRV is now in exclusive agreement with Cannapods. HSCC's CEO spends his days shooting squirrels off the back deck. Way past time to retire, he done shot all his wads long time ago.
DIRV will become a leader in MJ surveillance and compliance. It is a good deal down here below a penny. The conversions done that funded them thru last year are being accumulated. Contracts with Cannapods will most likely provide substantial revenue eliminating the need to borrow money.
Cannapods is a privately held mj company. They are in the business of making money not selling shares. This is a big deal for DIRV.
Have you accumulated any shares? I have several million.
http://stockcharts.com/freecharts/gallery.html?dirv
CNAB replaces Enright with Blackmon from River Rock. Stock soared today. Interesting to see what happens next few days.
Alzheimer’s Caused By Loss of Cannabinoids, Study Shows
http://www.leafscience.com/2014/06/23/alzheimers-caused-loss-cannabinoids-study-shows/
--(Marketwired - Jun 24, 2014) - Vapor Group, Inc., (OTCQB: VPOR), (the "Company", "Vapor Group"), announced today that it had revamped its corporate website, http://vaporgroup.com, as the first step in the updating of all its websites, including Total Vapor, Vapor 123 and The Vapor. The new websites will underscore the launch of the Company's enhanced direct-to-the-customer strategy comprised of its retail store rollout and expanded online marketing strategy.
Dror Svorai, President and CEO, said, "We have made our corporate website more comprehensive and are now freshening our other websites, starting with Total Vapor -- the brand name of our stores. The new 'look' and 'feel' of all these new websites will reinforce the openings of our retail stores throughout Florida, of which we will have ten by year-end, reaching from Miami to Orlando. Moreover, as part of a combined brick-and-mortar and online marketing strategy, we will soon begin testing multiple online trial offers to accelerate consumer web traffic and establish preference for our brands.
We project that this new online and retail store strategy will result in millions of dollars in incremental revenues by year-end."
BELLEVUE, Wash., June 24, 2014 mCig, Inc. (otcqb:MCIG) is pleased to announce its third and most exciting brand ambassador: William Leonard Roberts II AKA "Rick Ross". Heralded as one of music's biggest and most influential marketers, his alignment with mCig promises to introduce the brand to his millions of fans worldwide.
Rick Ross is a world famous American rapper and founder of the record label Maybach Music Group. He blasted onto the music scene in 2006 when his debut single, "Hustlin'," became something of a street anthem. The popularity of the song powered his 2006 debut album Port of Miami, which opened at No. 1 on Billboard's Top Albums Chart. Since then, Ross has gone on to release four more albums at the top of the charts, Deeper Than Rap (2009), Teflon Don (2010), God Forgives, I Don't (2012), and Mastermind (2014). Ross was also the first artist signed to Sean Comb's (AKA P Diddy) management company Ciroc Entertainment. In early 2012, MTV named Ross as the "Hottest MC in the Game". Ross has collaborated with dozens of artists including: Kanye West, Lil Wayne, T-Pain, John Legend, NAS, Robin Thicke, Ne-Yo, Trina, Foxy Brown, The-Dream, Jay-Z, Jadakiss, T.I. Erykah Badu, Trey Songz, P Diddy, Gucci Mane, Drake, Raphael Saadiq, Cee-Lo Green, Dr. Dre, Andrew 3000, Meek Mill, Usher, Wale, Omarion, and many others. His most recent album entitled "Mastermind" was released on March 3, 2014, and debuted on the Billboard 200 at the #1 Spot. To learn more about Rick Ross visit: http://www.rickrossmastermind.com or his Wikipedia page here: http://en.wikipedia.org/wiki/Rick_Ross .
Having joined mCig, Inc. as a business partner, Ross will initiate national product endorsements by means of his social media platforms and through various media distribution channels. Additionally, Ross and mCig will be launching a co-branded mCig device codenamed "Mastermind" by winter of 2015. The co-branded mCig is expected to retail for $20 each at point of sale.
"At this stage in my life, I've worked hard and make it a practice to only enjoy the finer things in life. From dining at my favorite Wingstop, listening to "Mastermind", now available in stores, to sipping Belaire Rose while traveling the world; I take pride in dealing with only the best, which is why the mCig collaboration makes the most sense for me and my brand. I've been using the mCig for several months and most definitely enjoy the smoking experience. Thanks to my Crossfit workout regimen, I'm also the healthiest I've ever been and none of that is compromised by using the mCig. The mCig gives me the cleanest experience possible, and as an avid smoker, that's what I depend on. It's sleek, small and affordable, making it accessible to all of my fans. I'm excited to be teaming up with Paul, DJ Swivel and the rest of the mCig team, and even more excited to be designing and launching my own mCig over the next few months," said Rick Ross.
"I couldn't be happier to bring Rick Ross onboard with us here at mCig. For many years Rick has been at the pulse of what's happening in urban music and it was very important for us to be able to bridge the gap and reach those audiences. Rick has shown a remarkable ability to mobilize fans, and promote products that both he and his fan base genuinely like. For us to be able to partner with Rick and introduce new products alongside him is an incredible honor and we're very excited about our upcoming co-branded device," said Jordan "DJ Swivel" Young, mCig's first brand ambassador.
"Rick is the perfect brand ambassador and we are extremely excited to have him on board. Rick has been using our product for several months and has even supported our product before becoming an ambassador. I am honored to have him join the team and am eagerly anticipating the design of our co-branded device, currently codenamed 'Mastermind' which has the potential to more rapidly disrupt our target markets. I want to formally thank Jordan Young AKA 'Dj Swivel' who made this momentous transaction a reality," said Paul Rosenberg, Chairman and CEO of mCig, Inc.
Non-Dilutive Transaction
As part of this transaction, mCig, Inc. CEO Mr. Paul Rosenberg has committed to cancel an equal amount of his shares against any newly issued shares to Mr. Roberts II or his representatives.
Cannabis Technologies Begins Phase I Clinical Trial for Glaucoma
http://www.cannabisfn.com/cannabis-technologies-begins-phase-i-clinical-trial-for-glaucoma/
SREH, HEARING CHATTER AND LOOKS RIPE FOR ANOTHER RUN TO .003 RUMORED NEWS COULD SEND IT THERE QUICK
$ SNMN ~~ In 2014, the emergence of cannabis retail stores in Colorado and Washington could generate roughly $1 billion in state-legal cannabis sales during the first full year of operation. The markets will eventually be much bigger
GRCU - SUPER KABOOOOOOOOOOOOOOOOOOOOOOM!!!
GRCU launched its game-changing CBD pill in LAS VEGAS on Sunday!!! HUGE INDUSTRY EXPOSITION!!!
The news has yet to hit the press. Get in early!!!
GRCU is OFF TO SILVERLAND!!!
Excellent point. This will be huge for PMCM, MJNA, ERBB, and the other tickers you mention.
Rescheduling appears imminent.
TRTC Edible gardens in Walmart ? thats the rumor a distribution agreement with Walmart. Holy Cow !
Study: Habitual Marijuana Smoking Not Associated With Increased Risk Of Lung Cancer - See more at: http://blog.norml.org/2014/06/23/study-habitual-marijuana-smoking-not-associated-with-increased-risk-of-lung-cancer/#sthash.KjglJHbz.dpuf
Marijuana’s just the start: Support biz booming too
http://www.thecannabist.co/2014/06/23/marijuana-frontier-brings-wave-ancillary-business-opportunities-boulder-area/14501/
Daily Dab 6-23 "The cannabis sector pulled back slightly to begin the week. 42% of the stocks rose in price, with 4 double-digit percentage gainers and 6 double-digit percentage losers. Stocks with volume above the 30-day average rosel from 28% to 34%, with one stock trading over $5mm in value. Five of the ten highest dollar-volume stocks rose in price as six issues traded above $1mm. Benzinga's 420 Marijuana Index, which fell about one point to 366.4 , posted a new post-March low and is up 130% year-to-date but down substantially from the 1010 peak in March.
http://www.thedailydab.com/?utm_campaign=website&utm_source=sendgrid.com&utm_medium=email
Generating revenue and beating estimates consistently
TRTC revenue & guidance
TRTC revenue for 2012 $552,579
TRTC revenue for 2013 $2,125,851
Above #'s from sec form 10-K page F-3
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9892196
TRTC 2014 guidance $7,000,000 in produce only.
http://finance.yahoo.com/news/terra-tech-issues-corporate-full-130500706.html
TRTC Releases 2014 Q1 Financials And Reports Over 700% Increase Versus Comparable Period 2013
http://finance.yahoo.com/news/terra-tech-releases-2014-q1-203000408.html
***MJ & revenue of vaporizer partnership with Vaporin
and CBD not included in $7,000,000 or any of above #'s***
TRTC fully reporting and upto date with SEC
http://www.otcmarkets.com/stock/TRTC/filings
Completely 100% compliant
TRTC has 5 grow farms in 3 states + 5 acre facility in NJ.
TRTC will be able to grow MJ by the acres and primed to profit the fastest out of all MJ sector Companies
TRTC secures Permit for a Medical Cannabis Cultivation and Production Facility in Clark County NV
http://finance.yahoo.com/news/terra-tech-subsidiary-medifarm-llc-200100592.html
TRTC secured two MJ permits out of Nevada the commissioners decided to give TRTC a cultivation and a production permit. The whole community was in support of TRTC.
Here is the actual video of commissioners
The FDA News on friday is flying low under the radar today....Rescheduling is bigger than Novembers votes on States combined...its the Holy Grail for MJ investors. I think the FDA is moving quickly this time and will work with DEA to get it done this year.
GWPH has a gap that it left at 77.00, it might come back there. Chart is still in blue sky...it could still go higher. I think it will test 100.00 then fill the gap it left at 77.00.
Just wait till product release from GW.
We will see better entry point for gw IMO. I feel last run we had a lot of sellers holding from 1s and we might of some correcting to do....idk..I am watching and waiting for now..
SPRWF/SL article out now!
There are a lot of companies throwing elbows in the recently-mostly-legalised Canadian medical marijuana sector, and investors are increasingly asking questions of those companies that they’re not used to answering. Things like, you know, ‘do you have a business plan?’
Stockhouse tracks over Canadian 40 ticker symbols in this space, most of which used to be mining companies that are now seeking to do business in the processing of weed, or researching its medical powers, or sticking it in energy drinks and vending machines and salads and vaporisers and lunchboxes and more.
But the largest – and most contentious - segment of the sector involves companies that want to grow the stuff. Investors and insiders alike drool at the thought of turning one of the most profitable illegal industries of the last century into a burgeoning legal industry going forward, with billions of dollars once destined for ‘motorcycle enthusiasts’ set to be vacuumed into corporate accounts.
But the devil is in the details.
The highest profile medical marijuana plays in Canada, right now, come down to four companies with plans for mega-grow ops – Tweed (TSX:V.TWD, Stock Forum), Creative Edge (OTO:FITX, Stock Forum), Medican (OTO:MDCN,Stock Forum) and Supreme Pharmaceuticals (CSE:C.SL, Stock Forum), with only the $115m market cap Tweed having sputtered to the starting line to this point, and Creative Edge and Medican facing questions over excessive claims of future glory.
Over the past few months, my take on Supreme hasn’t been far from my take on the other three, as my thinking has been that ‘pure grow’ plays may struggle to find patients to sell to, even if they can figure out how to grow weed on an industrial pharmaceutical grade scale and, for that matter, get a license to do so.
So in an effort to find out whether Supreme is part of the ‘big claim-no pants’ club, I talked in-depth to CEO David Stadnyk about what his plans are, how they’re getting to the starting line and, most importantly (as far as I’m concerned), assuming you can get a license to grow, what do you do with all that weed once you’ve grown it?
Let’s also be clear up front – Supreme has paid my employers, Stockhouse Publishing, for the placement of an interview within our distribution network, and they did so in the knowledge that, if I didn’t like the play at the end of it all, I’d come right out and say so. They didn’t pay me to write it, they didn’t get to say what would go in it, and neither Stockhouse nor myself own any Supreme stock, nor do we hold any short positions in this or other companies.
In putting together this piece, I’ve included almost every word spoken in the resulting interviews, because there are a lot of people out there who know about Supreme’s existence, but also know precious little about what they plan to do beyond growing weed in a big warehouse.
This article is intended to help all readers, whether they be weedco investors or those looking around the sector with a jaundiced eye, figure out exactly what Supreme Pharmaceuticals is, wants to be, and may one day achieve.
It’s a long one. Suck it up, princess.
SUPREME, THE SEEDLING:
Stadnyk admits, like many new weedcos, Supreme’s plans to become a medical marijuana company came to fruition quickly. Perhaps startlingly quickly.
“Everything happened so fast, frankly, it’s not even been three months since we were focused on pharmaceutical deals,” says Stadnyk. “I had previously worked setting up a company called Pharmaxis Pharmaceuticals (OTO:PXSLY, Stock Forum). We had this company that was a shell and we had identified a pharma deal out of there. The CSE put out a bulletin three months ago that said medical marijuana was doing fantastic, the volumes traded were great, so we thought it would be worth looking at. We’d already changed over to the pharma business, we thought let’s just see what happens when we look at the space - and all of a sudden we traded like crazy. The stars had lined up. We put out that first news release on a Friday, by Sunday I’d flown to Penticton and gone over a grow operation run by someone I already knew, and that deal was announced the next Monday.”
This isn’t a unique story. A lot of former mining execs are now lording over surging share prices and having to throw medical marijuana plans together in a hurry. Stadynk readily admits it would have been nice to have been planning the transition for a year, but says he lucked out in ways others haven’t, and that’s made all the difference thus far.
“A business associate told me he had access to the biggest marijuana license in the country, six football fields in size. So I made a few phone calls and they had run into problems raising money, so here was this real deal just lying there, waiting for someone to take it on. They had it all, the facility was right, and the deadline to buy was coming for a 340,000 sq. ft. facility. Pay for it or lose it, you know? So I flew to Toronto right away. They needed a million down to buy the building, and I happened to have $1.5 million in the bank, so we wrote a cheque and bought it. Leap of faith.”
Stadnyk says the timing was more than fortuitous, pointing out that with the market as bad as it has been over the last few years on the Venture Exchange, he wouldn’t likely have had the money to do the deal at any other point.
“Sometimes the planets align,” says Stadnyk. “This was one of those times. Everything’s going, from an operations standpoint, just great. The town is behind it – community, police, fire, all behind us 100%. We’ve had city officials ask if we’re hiring so their kids can get jobs here, so it just couldn’t be working out better.”
But buying a building isn’t a medical marijuana business plan. You’ve got to get a Health Canada license to actually grow and sell product, and most companies making big claims in this space either don’t yet have one, or have yet to start the application process. There are some 800 applications in the queue and, for many applicants, the still unfinished process of getting approved has taken months longer than anticipated – and could take months more yet.
Supreme doesn’t have their MMPR completed, but is at the final hurdle with their first facility. And it’s a hurdle they say turns their approval from an ‘if’ to a ‘when’.
“We have everything in order up to the final security inspection stage. We have to upgrade security at the facility and we know exactly what’s needed by Health Canada to get their sign off. It’s a case of completing those upgrades as directed, no guesswork. We’re estimating that final inspection is 60 to 90 days away, and we’ve certainly got enough money and time to complete that work. Once we get that license in Ontario, we should be able to get a real bump in valuation.”
Stadnyk says the company is pre-approved for 24,000 kilograms of medical marijuana production per year, if the required security is in place.
“That’s where we’re ahead of everyone else,” he adds. “We see all these news releases saying ‘we’re leasing a place’, ‘we’re going to be the biggest out there.’ We’re way beyond that. The sheer size of our facility and license is our competitive advantage.”
It must be noted that getting security upgraded is no small feat. Supreme’s 325,000 sq. ft. facility is massive, with a ‘from scratch’ replacement value of $17m. With upgrades, the company has paid $4.5m for it so far, which is admittedly quite the steal. The vault, when finished, has to hold up to $150m worth of marijuana and it doesn’t take much imagination to understand how attractive such a stash would be to the kind of element more traditionally associated with the marijuana game. That vault needs to be Oceans 11-proof.
“Our vault will be one of the biggest – if not the biggest - in the country, so security has to be perfect. Beyond perfect,” says Stadnyk.
That’s not a cheap process. To get there, the company may need to do a little financing, in the range of “half a million dollars to get Supreme into the operational phase by end of year, or first quarter of 2015,” says the boss.
Outstanding warrants, most of which have already been exercised, should help keep the lights on.
Beyond that, Stadnyk expects to do a post-MMPR financing of $7m-$15m over a couple of rounds, once the share price more accurately reflects where he thinks the business is at. The CEO says he has “a very big position” in the company, and thus has no plans to do any share rollback as long as the price can get to the $0.25 range post-MMPR approval.
Shares sit at $0.08 now, giving the company an $11m market cap which, even to someone jaded on grow plays, seems incredibly low compared to current valuations placed on competitors.
Tweed’s facility is half the size of Supreme’s, and has had problems getting a happy crop out the door. Despite that, they’re at ten times Supreme’s market cap. Creative Edge plans ‘the largest grow op in the world’ but is only approved by local officials for 60k sq. ft. to this point and has a market cap 15 times that of Supreme. Medican hasn’t started their MMPR process and has a $77m market cap, 7 times Supreme’s.
“People are waiting for us to get that one step done,” says Stadnyk. “Then we’ll be real to people. We could be half Tweed’s market cap after that, and that would mean a big jump to shareholders.”
SUPREME, THE SPROUT:
John Fowler is Supreme head of operations and, in talking to him, you quickly get the sense that he’s a no bull, straight talking, knowledgeable guy. This is evidenced by the company’s sheer willingness to get him in front of a reporter. Stadnyk must have told me five times in our first interview, “you’ve gotta speak to this guy, he’s amazing.”
Frankly, I didn’t want to talk to him initially, but I’m glad I did: If the company has lucked out with any aspect of their business to this point, it’s not in having a massive grow facility fall into their laps, it’s getting a guy like Fowler to oversee production. He doesn’t oversell, and he’s not rushing to get product out the door. He’s frank with the company’s limitations to this point, and about their plans moving forward.
“We’re looking to have a license by early September,” he says. “If all goes to plan, we should have medicine ready at the beginning of 2015 at the latest, and our first step is to make sure we’re producing the best quality meds in varieties that are effective in their stated purpose.”
He says the team is still being built out, and that the company took its time to find and secure the top name on their talent acquisition list.
“We think we have Canada’s top marijuana grower signed to the team,” he says, adding that a news release on that hiring will be coming once the deal is set in stone. “He’s a guy operating for many years under the old MMAR system, he has a large following in North America and Europe. When that’s announced, we expect a lot of attention.”
Fowler isn’t just about growing, he’s also putting plans in place for distribution. One such step is to have an on-staff doctor who will be targeting other doctors for education purposes, in the hope those doctors will be inclined to suggest Supreme over other suppliers.
But the biggest plank in Supreme’s distribution platform is their intention to grow low cost, high grade product, and present a variety of grades among their offerings.
And by low cost, I mean iTunes low. I mean low enough that it doesn’t make sense to get soil on your hands growing your own.
Come for the generic $2 stuff, stay for the $8 mindblower.
As someone who has watched this sector very closely, and taken a heavy shovel to the neck of several companies that have made bold promises without the ability to follow through, my big issue with strict grow plays has long been the back end of the process. For mine, it’s a pointless exercise to grow megatons of weed if you can’t distribute the stuff, and Health Canada’s rules make distribution tough.
Assuming you can get your MMPR together, you have to convince medical marijuana patients (40,000 in Canada under the old rules, but decidedly less under the new system so far), who are largely on disability, to go to a doctor for a new scrip, then go online and choose a company as the place they will buy online.
And companies going through that process have to do so without advertising.
For those positioned at the large end of the market, shoveling thousands of kilograms of weed out the door will be a daunting proposition, so Supreme’s big plan for pushing through that bottleneck is straight up old school: An entry level product priced between $1.50 and $2 per gram.
Behold, the Wal-Mart of weed.
Tweed’s product, by their reckoning, averages out at $7 per gram, with a discount for those in financial peril. As things stand today, with seven of 80 proposed strains available, Tweed’s median price is over $10 per gram. Supreme estimates they’ll come in on a $4 per gram average, and with the potential size of their crop, that will likely have a chilling effect on some of their competitors with high in-grained costs.
Fowler thinks that effect will be felt at both ends of the market, with large growers having massive running costs and debts to cover not being able to compete on margin, and lower end guys not having enough market heft to make it worth competing.
“The guy on disability growing his own meds for almost nothing, you’re still looking at him spending a few bucks per gram on his own production, and that’s excluding the time spent looking after it. If we provide a good range of pricing and fair pricing, we’ll find people transitioning over. With our scale, we can offer them the same price, but save 10 or 20 hours a week looking after their crop.”
Fowler understands his strategy will put pressure on the industry, but says it’s not his problem if others have geared their businesses with unsustainable costs – a situation he says will hit smaller growers hardest.
“One way we compete is to put things out at a price others can’t sustain themselves at. If you put money into a 5k sq. ft. facility, you don’t have long term sustainability when prices fall. If you get scared when prices hit $5 per gram, you’re going to lose your money in a few years. As much as I want to make money doing it, I believe in the medicine and I can’t say to people they should spend hundreds of dollars a month on their medicine at $12 per gram.”
Stadnyk agrees: “Tweed has a fairly hefty nut to cover every month and I’m sure, right now, their losses are sizable. Our timing is excellent and our costs will be reasonable.”
Supreme plans to employ, in the near term, between 50 and 80 people, and with a nuclear power plant not far away, they’ve signed a deal to receive power at a discounted rate – a big deal given that hydro is perhaps the biggest ongoing expense associated with a grow operation.
Stadnyk admits the licensing process still contains a lot of ‘ifs’, and that there are lots of potential issues that are likely to arise in the greater sector going forward while Health Canada figures out what it actually wants from license-holders. That may leave a lot of companies in the lurch.
In fact, Stadnyk says he sees carnage a-comin’.
“All those companies that don’t have an MMPR yet, it’s a total risk that they’ll find out some time in the future they’re not getting one – and then what? There’s no guarantee to this stuff whatsoever. If we’ve been able to produce a year down the road, Health Canada is going to want to have as few facilities as possible to watch over; they don’t want pot factories all over the country. That’s why the big guys like us are so far down the process. As soon as they get enough licenses out there, maybe 50 to 80 licenses, that’s it. They don’t want the small guys, they want big guys they can keep tabs on.”
Which means a lot of those late to the party may find themselves shut out.
“I wouldn’t invest in one company that’s entering the process now and saying they’re going to apply,” says Stadnyk. “Not one.”
Fowler agrees. He sees the Supreme Ontario facility as a big advantage over competitors like, for example, Maple Leaf Green World (TSX:V.MGW, Stock Forum), which hopes 52 polyethylene greenhouses they recently leased will be able to pass muster with Health Canada and be suitable in the weed growing process.
“Our facility was built in partnership with the Government of Canada in the 80’s and we had greenhouse engineers take look at it early on and they laughed. They couldn’t believe anyone would spend so much money on a facility. It’s the best of everything. In a poly or low quality glass greenhouse, that doesn’t happen. The shape and design, if you don’t have the right shape, and poly is round, you can’t clear condensation from the heat. A lot of companies I wouldn’t put my dollars behind because their facilities just won’t work for this kind of product.”
“Our first phase will be 60,000 sq. ft.,” says Stadnyk, “which we can do because ours is not one massive grow op, it’s divided into four sections of the whole. Each is closed off so that if something did happen to one crop, it won’t affect the next room, and we can scale production without too much expense and trouble.”
Almost every grower has found, at this early stage, that weed isn’t something you can just throw in a pot and get the best out of. Even outfits like Whistler Medical Marijuana, which has long term growing experience, have admitted to struggling to effectively get their process properly scaled to an industrial size, and others have had their licensing pulled after failing inspections.
Stadnyk says growing pains are (no pun intended) expected.
“I hope we won’t have to face that issue, but I think there’ll likely be some feeling out process. The guys we have in place have left no stone unturned, and all of our operations guys have healthy credentials.”
SUPREME, THE STALK:
Building out a real company in the weed space hasn’t exactly been a priority for a lot of weedco investors to this point. A bump in share price is often the focus of the exercise, with the details to be filled in later, but Supreme is putting a lot of brainpower into the fine details.
Fowler goes into more detail: “One thing a lot of people getting into this market don’t realise is, with the final product, 30% of the quality is based on genetics. Another 30% is based on the grow. 30-40% is based on the dry cure and manicuring process. A big part of our plan is providing perfect conditions to dry and cure, which could take three to six weeks after it comes out of the ground to be ready for sale.”
He says, “If you cut from a plant and try it one week after you cut it, then two weeks, then three weeks, it gets better every time. If you don’t cure it, you might have 17% THC, but it’s a type the body can’t use. If you don’t have the right industry experts advising you, you can grow the best weed around but not the best medicine.”
“We’ve tried to be as risk averse as we can be,” he continues. “Our greenhouse is sub-divided into somewhere between 2k and 4k sq. ft. areas, completely sealed, so we have better control of HVAC. You can control humidity in a 150k sq. ft facility, but it’s much more difficult than in a 3k facility. One strain might like 80 degrees and high humidity, another might want 72 degrees and low humidity. If, heaven forbid, we encounter mold, mildew, bugs, we can close that room and clean that out and production continues.”
Fowler’s plan is for the first crop to actually be 12 crops, of 3k sq. ft each in size.
“That means, if we got one or two strains that didn’t work out like we’d want, or one or two areas that aren’t perfect in delivering a premium plant, that doesn’t go to market. We can’t put out a sub-perfect product because we’re dealing with people’s health.”
The Supreme model is for each variety to have an established ballpark number of days in which to reach peak quality. “The longer you flower, the more THC will convert to CBD, so one reason we want smaller grow chambers is that we want to stagger it, and order will be dictated by the number of days each plant needs. So every day the harvest crew will be taking down a room, which means each plant is harvested at peak medical use.”
Some strains need only 50 days to ripen, others need 120, says Fowler. “It gets pretty scientific and planning is key, so we can harvest in a staggered basis. First day of sales, we might have one or two strains available. Six months in we should have a vault full of many varieties.”
And that’s just on the Ontario side. There’s another facility they’re working on in Okanagan Falls, British Columbia, which has four licenses under the previous MMAR rules. The expectation is both facilities will receive their MMPR, but if one doesn’t, or has significant delays, the alternate facility diversifies risk significantly.
That’s a good thing, as the BC operation recently heard that a lot more information is needed to move the MMPR process along to where the Ontario facility is at. Stadnyk says this wasn’t a surprise and is just part of the process, and that he expects all requests to be satisfied in time. The BC facility isn’t something the company needs operating in 2015, and by the time it is set to go, the company hopes it will help diversify the supply chain long before distribution ramps up to the levels where extra capacity is needed.
SUPREME, THE SELL:
Diversifying risk doesn’t just apply to the production end, the company is also looking to diversify distribution. To that end, they’re in talks with companies that may be looking to acquire supply for industrial uses.
“The second our door is open,” says Fowler, “we’d like to work with industrial processors, and we’re happy to talk to other growers in respect of sub-contracting so we can satisfy wholesale options.”
The talks have been very preliminary to date, but the thinking is to allow a partner company to open without production facilities themselves, perhaps branding Supreme’s product and, with a warehouse and a call centre, a company could cut 80% of their licensing costs. In mining terms, it’s an off-take agreement, and as other companies find they fail to get an MMPR approval, or can’t afford a facility, there may be a huge market in this area.
“You can sell it as our product or as a white label product,” says Fowler. “If my phone rings with a good business plan, I’m all over it.”
In the meantime, the company is taking a software-driven approach to production that it sees as another advantage.
“It’s no good to have best policies if we don’t know guys are following it,” says Fowler. “Our software was developed in California where regulations are tough, and we program it with what we’re growing, how we’re growing, how we want to grow. It downloads daily to a gardener’s iPad and lays out jobs for the day. I can use my smartphone to see what’s in room two, what are the tasks being done, I can know how many people are growing, drying, and how much is in the vault. I can PDF that to a regulator at the drop of a hat. From compliance, what’s great is if I got a bad batch of fertilizer, I can look at the software to see what batches got that fertilizer and what needs to be stopped in production, or who bought that medicine, and it’s instant.”
This sort of data will be important when cross-border trade becomes an option, something Stadnyk thinks will happen, eventually.
“You’d have to think there’ll be a challenge on NAFTA grounds at some point. I don’t want to be the one who is going to lead that charge, but they can’t not accept cross-border trade forever. We’ll keep one eye on it but we’re focused on what we have right now. We have more than enough on our plate, though those are great opportunities going forward and, if it does go recreational - and if [Liberal Party leader] Justin Trudeau [wins the next Canadian election] it will - assuming we get to production without issue, imagine what happens at that point.”
To prepare for US interest, Supreme has listed on the OTC (ticker symbol: SPRWF), and that’s helping drive volume at a time when many in the dot.bong sector are struggling to keep their story alive.
The company also has continuing interest from larger players looking at their tiny market cap with a view to acquisition potential.
“We’d certainly look at offers,” says Stadnyk. “Once we get our MMPR, I think it’s logical for someone to come in and take us out. If I was going into the business, I’d not want to be in with the small guys duking it out, I’d be looking at the leaders in the field. Big pharma, the tobacco industry, if you do your due diligence and see which guys have the biggest situation, you’d have to see us as either an investment candidate or a target to be taken out.”
One day. But not right now.
“We get a lot of interesting calls, every day,” he says. “We don’t even follow up with all of them because we know our valuation will be better once we get that license.”
What separates the company from the other three big grow plays mentioned earlier in this piece, for mine, is their lack of self-congratulatory rhetoric. Supreme isn’t a company I’ve invested in simply because of the sheer number of variables relating to how a company disposes of its product in this market, and that may still be something the company will struggle with in time.
But that applies to every company in the sector. What makes Supreme the most appealing of the currently listed straight grow plays, to me, is that they’re doing it with a straight face.
In terms of comparison, here’s how Medican, which has yet to grow a gram of weed, describes itself on its website:
Medican is the industry standard for pharmaceutical grade medical marijuana production, cultivation and distribution.
Compared to Supreme’s website:
“Supreme Pharmaceuticals Inc. is a company dedicated to securing multiple producing medical marijuana facilities in Canada and applying for several MMPR commercial production licences.”
The difference is stark.
“We don’t want to overblow ourselves and create something we’re not,” says Stadnyk. “None of us want any regulatory problems. We keep it matter of fact and say we can achieve what we know we can achieve. I don’t want to be one of those guys who don’t deliver. People are looking at the sector with cynicism and it doesn’t bode well to promise the world.”
“Build a real company and everyone, shareholders, customers and management, will do really well.”
--Chris Parry
@ChrisParry on Twitter
Chris(dot)parry(at)Stockhouse(dot)com
Read more at http://www.stockhouse.com/news/newswire/2014/06/23/supreme-pharmaceuticals-(c-sl)-looks-to-dominate-marijuana-market-with-low-pricing,-high-q#BtG4jrI9fyXjetuw.99
New York Legislature Approves Medical Cannabis Legalization Bill, Governor Expected to Sign Into Law
New York’s Assembly voted at around 2:50AM EST on June 20th to approve the Compassionate Care Act, a proposal to legalize medical cannabis. The vote was quickly followed by the bill’s approval in the Senate.
Under the proposed law, individuals will be allowed to possess cannabis for medical purposes if they receive a recommendation from a physician, and subsequently receive a registration card from the State Health Department. Unfortunately an amendment was approved to prohibit the consumption of cannabis through traditional smoking, because Governor Cuomo threatened to veto the bill if such a change wasn’t made. Vaporizing, however, would be allowed, as would the consumption of cannabis through edibles, lotions, tinctures, oils and so forth.
The bill would also allow for a limited number of medical cannabis dispensaries in order to provide safe access to the medicine, though the number of outlets would be limited to just five.
Proposals to legalize medical cannabis in New York have been approved five other times in the past by the state’s Assembly; this marks the first time the Senate has approved such a measure.
Given the approved amendments, Governor Andrew Cuomo is expected to sign the bill into law.
- TheJointBlog
Medbox Launches Marijuana Dispensary Management Practice
Company Receives Provisional Approval to Operate Dispensary in Portland, OR;
Medbox to Provide Management and Regulatory Oversight for Dispensary
LOS ANGELES, June 23, 2014 /PRNewswire/ -- Medbox, Inc. (MDBX), a leader in providing lawful marijuana dispensary consulting services and patented dispensing systems to the alternative medicine industry, announced today that is it launching its marijuana dispensary management practice in Portland, OR. This business line, operated through the company's wholly owned Medbox Management Services, Inc. subsidiary, will provide necessary oversight services for dispensary operations in concert with a capable joint venture partner the company is currently in the process of sourcing, that will manage day-to-day activities at the dispensary. While the company has offered licensing consulting services since 2010, this will mark the first time the company has entered into a management contract to provide professional oversight services at a dispensary location.
Medbox recently received provisional approval to operate a medical marijuana dispensary in Portland and is in the process of preparing the dispensary for a cursory inspection by state officials for final approval with a grand opening scheduled in September of this year.
"Medbox is adapting its business model to capitalize on the demand from investors and individual states for Medbox to utilize its industry experience to professionally manage dispensary facilities. This opportunity represents a highly profitable revenue model for the Company and we are in the process of establishing operations in every state where marijuana is now legal. We will continue to seek to partner with affluent and high-pedigree clients on joint-venture partnerships in these states," stated Dr. Bruce Bedrick, CEO of Medbox, Inc. "As the country continues to march forward with sensible reform, we stand ready to supply the tools, software, consulting and management services that improve security, compliance and reporting," he added. "We look forward to expanding our presence nationwide and reaffirming our industry leadership position."
Nevada, Illinois Florida, New York, Minnesota, and Maryland have all recently passed medical marijuana legislation bringing the nationwide count to 23 states. Medbox has invited State officials from Nevada to see the future Medbox managed facility in Oregon, and will soon invite officials from other states as well.
Yes GWPRF/ GW is a monster...Blue sky chart...
http://stockcharts.com/h-sc/ui?s=GWPRF&p=D&b=5&g=0&id=p91027219495
American Green (otc pink:ERBB) (pinksheets:ERBB), the company behind The ZaZZZ marijuana vending machine has begun shipping the first of many machines nationwide last week, the first of which are going to medical marijuana dispensaries in Colorado.
Since unveiling ZaZZZ in April to a large and eager crowd of spectators, investors, and members of the press at a popular marijuana dispensary, Herbal Elements in Eagle-Vail, Colorado, the demand for the first-ever consumer-operated, automated, ID verifying, marijuana vending machine has has continued to grow.
ZaZZZ allows dispensary customers to easily come and go by purchasing the cannabis or edibles of choice without having to wait in lines or have any personal interaction with the staff. It saves time for both customers and staff, while it helps increase steady revenue for the dispensaries.
Once a customer's identification card is scanned, the ZaZZZ process uses real-time verification to match the person with their ID. If there is a positive match, the customer can make a purchase using cash, bitcoin, and soon credit or debit, once banking regulations have adjusted. If there is not a positive ID match, ZaZZZ's security will prevent operation and the prospective customer will then be directed to speak with a staff member.
Product quality is paramount for both the dispensaries and the end customer. ZaZZZ machines are climate controlled to ensure only the freshest products are dispensed.
Colorado is the first state to begin receiving the machines which will be placed at Herbal Elements in Eagle-Vail and Doctors Orders, one of Denver's premier dispensaries.
"I believe that American Green's ZaZZZ will fit perfectly in our environment and can be easily and securely operated by our customers," said Josh Bartch, Doctors Orders' president. "I'm very excited that we will be the first dispensary in Denver to use what we believe will be a revolutionary machine."
"It's an exciting time and we, of course, are very happy to be moving ZaZZZ across the country into dispensaries who understand all of the possibilities that this technology offers," says Stephan Shearin, president at American Green. "We are committed to building strong long-term partnerships with dispensaries that will continue to scale revenue and profits for years to come."
Anyone who visits the American Green Headquarters in Tempe, Az. will be able to see ZaZZZ in complete working order dispensing non-marijuana products.
American Green encourages all folks wishing to follow the progress of American Green(TM), Tranzbyte and its other subsidiaries and divisions to visit the American Green website at or www.americangreen.com and sign up to receive our 'Email Alerts' which are sparingly sent to interest-holders periodically. Mobile users can also sign up by navigating to the company's website on their android smart phone or iPhone.
Also, shareholder and other interest-holders may track the progress of our fully automated ZaZZZ(TM) Machine by following us on Twitter @Tranzbyte or @American__Green (two underscores).
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