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Re: farfromrich post# 96511

Tuesday, 07/22/2014 9:19:13 AM

Tuesday, July 22, 2014 9:19:13 AM

Post# of 102667
Rich,

The beauty of what he has created is that it is a distributor model whereby others are building sales on behalf of Dutch. Low SG&A and very high scalability. The theory is it is better to have a smaller piece of a much bigger pie than all of a small pie. Profit sharing with distributors and allowing them to ramp the sales through exclusive geographic territories like Abba Medix in Canada, is pretty brilliant.

When people start to become more educated on just the test kit opportunity and the true statistics that support the huge growth potential in just this one revenue vertical, it will all begin to make better sense. There appears to be no other consumer based THC testing kit on the market, all others look to be lab quality and cost hundreds of dollars. I believe the average person using medical mmj needs an ability to test the quality as many as 3 times a month if I'm correct. When you start adding up the potential for the consumer based kit and note its totally affordable cost, it won't take Dutch capturing too much of this market to move the ebitda needle imo. Just execute.

Abba Medix agreed to an upfront $300k license. The sizeable amount is clearly indicative of them believing the market and sales potential for it to be very large and opportunistic.

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