The a/s increase broken down (from Facebook):
The company just increased the authorized shares. Let’s go back and think about its implications:
1. Pazoo says they have margins at 75%. They've PR'd that they will earn approximately $1,000,000 of revenue per 100,000 square feet of grow that is tested. In Las Vegas, they feel they will be testing 1,000,000 sq ft by the end of 2015. They have PR'd commitments of 300,000 with more on the back end.
2. Using the smallest number, 300,000 sq ft that is locked in... $1,000,000 per 100,000 sq ft would equate into $3,000,000. Less 75% margins to get $2,250,000. At 40% equity, you're talking about $900,000 in profits for Pazoo.
3. Using the larger number, 1,000,000 sq ft predicted…$1,000,000 per 100,000 sq ft would equate into $10,000,000. Less 75% margins to get $7,500,000. At 40% equity, you’re talking about $3,000,000 in profits for Pazoo.
4. When 100% equity is applied (all future expansion), the profits skyrocket up to $2,250,000 (300,000 sq ft tested) to $7,500,000 (1,000,000 sq ft tested) per facility.
5. The cost to open up a facility isn’t cheap. As pointed out earlier, the equipment alone is $600,000, but for every facility that comes online, we are looking at MILLIONS in annual profits.
6. Let’s assume each expansion were to cost $800,000. Let’s also assume that new debt will be issued at the .004 rate we last saw prior to all of this news. That’s $8,000,000 worth of shares @ .004. This potentially would pay to immediately build out 10 new facilities.
7. Assuming 11 Harris Lee facilities (10 new plus Oregon) were churning out 300,000 sq ft of testing per year (low side of every estimate), we’re looking at $24,750,000 of profits + Las Vegas’s $900,000 = $25,650,000…on the low side
8. Same math @ 1,000,000 sq ft per facility is…11 Harris Lee facilities generate $82,500,000 + Las Vegas’s $3,000,000 = $85,500,000
9. Make no mistake. These shares are for expansion. Check my math. The profitability is absolutely insane and these shares cannot be converted immediately.
The idea goes: a 2 Bn share increase (that may not even be used) could theoretically fund 10 new facilities. The combined facilities would post a wide range of profit from $25,650,000 (low side) - $85,500,000 (high side)….every…single…year.
You guys should be rejoicing at the potential here. We all want it ASAP and for free, but the numbers are insane. The low end would be 10x our current market cap for 200% a/s increase. The high end would be a 40x current market cap.
