METHODS FOR IMPROVEMENTS IN PLANT BOTANY
Development of methods and technologies to significantly enhance plant growth and purity will be in great demand as the cannabis industry develops. Improvements in plant botany is a multi-billion sector of the agricultural industry today, especially in the food sector.
In May 2015, FFFC signed an operating agreement with Wisconsin-based Sanidor Systems to create Pure Grow Systems, LLC. Under the terms of the agreement, FFFC acquired 49 percent interest in Pure Grow and participation in 50 percent of the profits. Pure Grow's mission is dedicated to the healthy production and processing of raw materials used for medicinal or other health related purposes. One of the products in the Pure Grow System's line provides technology in potentially clean, sanitize and disinfect the processing environments of plants and herbs used in the formulation of alternative botanical and herbal therapies. The Pure Grow management team has a long history in the development of herbal and medicinal products. They have an understanding of the need for cleaner and safer ingredients for medical products.
3. SECURITY SERVICES AND EQUIPMENT
Without the ability to deposit cash in banks, the marijuana industry is essentially a cash-only business. Abundance of cash, combined with high products sales operating margins makes the cannabis business a target for criminal activities. The security industry in the U.S. is estimated to exceed $300 billion dollars.
Our plan is to enter this potentially lucrative market through our acquisition of an existing, operational security company. In mid-2014, FFFC acquired a 70 percent interest in Canton, Ohio based, Brawnstone Security, Inc. (Brawnstone), a diversified security, training and investigations company. Brawnstone presently services 15 clients and has a staff of 33 professionals. It is equipped for installation of business security systems, intrusion devices and technology based solutions. Brawnstone is an approximate three year old company.
During the past year, we have devoted our resources in restructuring the Brawnstone balance sheet and restoring higher margins by increasing the Company's operating efficiency. These initiatives have borne fruit at the present time: Brawnstone has an annual revenue run rate of $750,000.00. Our strategy is to use the Brawnstone platform to enter the cannabis market plan in late 2015 or early 2016. The Company's research shows that operating margins for cannabis related security services could exceed current billing levels by at least 100 percent.
