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Key BLDV, AMS, & Israel Valuation Consideration...

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stervc Member Level  Sunday, 05/14/17 08:25:07 PM
Re: Mas1613 post# 59414
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Key BLDV, AMS, & Israel Valuation Consideration...

Watch and listen to the following videos below, but first, I think I should kind of set the stage of what you will learn from listening to the following videos of Alternative Medical Solutions (AMS) being talked about on the CTV London News TV stations within Hanover, Ontario, Canada a little while back to include some other researched I have learned of below:
Quote:

CTV London News TV Stories - Key Points
http://london.ctvnews.ca/video?clipId=357998
http://london.ctvnews.ca/video?clipId=357999

** AMS is being built in Hanover Industrial Park in Hanover, Ontario, Canada.

** Mayor of Hanover (Kathi Maskell) supports the project because it will bring up to 60 jobs over a 2 year period and new tax dollars.
https://ca.linkedin.com/in/kathi-maskell-95047547

** City of Hanover gave them the property for Economic development.

** More construction to take place in June 2017.

** AMS expects to have Health Canada approval of permit to move forward with further construction in June 2017.

** Expects to be fully operational and licensed by September 2017.

** City of Hanover Mayor confirms that the city is considered a partner of AMS.



This piece below to obtain the $12 Million USD non-dilutive financing for AMS is finally rounding Third Base and heading Home even though it took a little longer than expected. Read below earlier confirmation of this that is nearing completion in my opinion:
Quote:

https://www.facebook.com/permalink.php?story_fbid=338152243198125&id=108751362804882
Blue Diamond Consulting, LLC (BDC) a wholly owned subsidiary of Blue Diamond Ventures, Inc. has entered into a Strategic Alliance Agreement to provide services to Alternative Medical Solutions (AMS) a pre-licensed Candian Cultivator located in Ontario, Canada.

AMS is in the process of completing a Fifty Thousand Square foot cultivation facility in Ontario. BDC under the terms of the agreement has already begun providing services as it assists AMS in Securing financing from a private lender in the amount of $12 million USD to finalize construction and build out of its building.



Now let's discuss a BLDV valuation for AMS coming in under BLDV as a wholly-owned subsidiary that could exist.

The cost of marijuana in Canada is approximately $7.50 per gram from what I have researched so this is the variable I will move forward with to reflect a valuation. If you learn of this variable or any other variable that I used to be different, then please use the Substitution Property to replace that variable for a new derivation. Below are some key conversion ratios that should be known too:

28 grams = 1 ounce
16 ounces = 1 pound


So...

$7.50 per gram x 28 grams per ounce x 16 ounces per pound = $3,360 marijuana cost per pound

From reading the articles below, I learned that it's fair to expect to grow 500 to 1,000 grams of marijuana per square foot if you have a 1000-watt HPS lamp:
Quote:

https://www.theweedblog.com/how-much-marijuana-does-a-marijuana-plant-yield/
• An average of around 250 to 500 grams (1000 for advanced growers) with a 1000-watt HPS lamp in a grow room that measures 1.5 x 1.5 x 2.5 m

Conversion of grams to pounds
https://www.google.com/#q=grams+to+pounds
1,000 grams = 2.2 pounds

http://weedfarmer.com/growing_guide/sea_of_green.php
4 plants per square foot will be a good start for seedlings. 1 plant per square foot will allow plenty of room for each plant to grow a large top cola, but will not allow for much bottom branching. This is OK since indoors, these bottom branches are always shaded anyway, and will not grow very well unless given additional light and space.



So, with speculating on the high side of 1,000 grams per square foot per plant... AMS has a 50,000 square feet facility that they are using. Let's figure that they only use 30,000 square feet to grow marijuana to give them the flexibility to have office space, room to hang and dry the marijuana, etc. with the remaining 20,000 square feet.

From the conversions above... 1,000 grams converts over to be 2.2 pounds.

So...

2.2 pounds of marijuana x 30,000 square feet = 66,000 pounds of marijuana

It is believed that AMS will be able to obtain 5 harvest per year...

So...

66,000 pounds x 5 harvests per year = 330,000 pounds of marijuana per year

330,000 pounds x $3,360 per pound = $1,108,800,000 AMS Revenues Per year

I had heard that their Net Profit Margin is going to be somewhere well above 50% for its operations, but let's be conservative and go with a 30% Net Profit Margin to derive what would be the expected Net Income to derive an Earnings Per Share (EPS) for BLDV since AMS has agreed to let BLDV acquire them as a wholly-owned subsidiary. Also, we will consider the Outstanding Shares (OS) for BLDV to be the indicated 4,760,585,689 shares. Also, I will use 20 as the Price to Earnings (P/E) Ratio as the growth rate for the Marijuana Industry which is very debatable to be much higher. Let's derive a fundamental valuation to consider...

$1,108,800,000 AMS Revenues Per year x .30 Net Profit Margin = $332,640,000 Net Income

$332,640,000 Net Income ÷ 4,760,585,689 OS = .0698 EPS

.0698 EPS x 20 P/E Ratio for MJ Industry = $1.39 Per Share BLDV Valuation

Wait though... let's say that I am overly aggressive through the eyes of some investors with these valuation thoughts. Well, let's play with some more numbers a little less aggressive that might be a little more logical to some. Let's drastically reduce some variables.

Instead of making 1,000 grams per plant, let's say they only do 5 times less to be 200 grams per plant. Then this means that the valuation would be 5 times smaller which equates to a .278 Per Share BLDV Valuation.

As for the Stages or Steps regarding where AMS is at with moving forward... AMS is at Step 6 of 7. They still need the building to be inspected which needs to be finished being built (primarily the infrastructure) which is expected to be done by Sep 2017; all the required permitting is expected to be done and approved in June 2017. Then AMS will have carry out their first 2 grow cycles (done two weeks apart) to have inspected before a final marijuana license will be issued for cultivation.

Something else very important to consider... keep in mind that this valuation does not include any of their Israel and Canada import/export operations that is forming into a powerhouse of its own. This piece alone could be bigger or as big as the AMS valuation above that is coming in under BLDV as a wholly-owned subsidiary in itself once the dust clears and it is learned just what companies they are dealing with over in Israel. This operational piece is something totally separate from what I posted above as part of the BLDV valuation.

Again, I think I must reiterate the importance of what's happening with BLDV, AMS, Israel, and Canada...

I think it's very important for all to understand that the future of Marijuana is for Marijuana to be global and BLDV is positioning themselves to be a global leader and not just a state leader restricted to just one state. Marijuana will be considered as a Commodity and Commodities are traded all over the world. It’s a global economy and it will not be fragmented.

I have a feeling that we all are going to be pleasantly surprised.

v/r
Sterling



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