Two Rivers Water and Farming Co. (fka TURV)

[lewsogge]

10-k out! Just finished reading it all (took 2 hours). Nothing too surprising here- 2016 financials were ugly thanks to Suncanna fiasco, which we already knew about, but the losses actually were much better than I thought they'd be. I also now 110% agree with managements decision to sell the irrigated farming business (produce crops mainly) to get that loss off our books. The proceeds of those sales should help cash flow a lot and avoid dilution, nice idea by management that shows shareholder commitment. Commodity and crop prices have been getting clubbed like a baby seal and with the "Trumplfation rally" /subsequent strong US Dollar, and that isn't showing any signs of changing near term. Good riddance irrigated farming!

It also seems like we are very close to profitability once the 2nd greenhouse construction is finished... below is the super-simplified math behind that logic, along with a few excerpts from the 10k I found particularly interesting:

Total lease payments under the 120-month lease agreement for 50% of the GCP1 greenhouse, which are $21,433,000, is divided by the lease term. Therefore, the average lease rate per month is $179,000 for one half of the total greenhouse.

$179k x 2 = $358,000 per month for 1 full greenhouse. We will have 2 online and accruing rent by EOY so $358k x 2 = $716,000 monthly revenue or roughly $8.6 million annual revenue.

The first greenhouse was 50% occupied on December 1, 2016 and rent began to accrue as of that date. The second half of the greenhouse began to accrue rent on March 2, 2017. We expect the second greenhouse to be completed by mid-2017 and be occupied and accrue rent at that time.

^main reason I am not worried at all about financials here.... due to the aforementioned Suncanna fiasco, revenues were down big time in 2016 and they didn't start collecting rent from new tenant until 12/1/16 on only one half of a greenhouse. So in other words that new revenue stream is BARELY reflected on this 10k. We now have the full greenhouse rented as of this month and are within a couple months of having another greenhouse completed/rented.

Each warrant issued upon any such exchange generally will be exercisable at any time on or before January 31, 2019, subject to our right to redeem the warrant at any time after January 31, 2017, at which (A) for a period of 20 trading days, at least 250,000 shares of Common Stock have been traded on a national securities exchange for a closing price of at least $3.00 and (B) a registration statement has been filed and is effective with respect to the shares of Common Stock issuable pursuant to such warrant.