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Wednesday, 11/01/2017 12:06:08 AM

Wednesday, November 01, 2017 12:06:08 AM

Post# of 8112
Help me decipher the GBLX/Curacan business model.

1. Curacan will use GBLX's Nevada Production License. GBLX to generate a recurrent cash flow from royalties. Very positive long term.

2. GBLX will sell the raw material to Curacan @ whole sale prices. There is more money in retail in Nevada right now. There are reports of 200% increase in prices since it became legal (recreational use) this past July.
A win some lose some situation until production is up to full rate and the retail sales part of the business is fully operational. I guess the whole sale price will be adjusted too. (better than $2,500 a pound)

3. GBLX will use Curacan expertise to produce the oil. Great reduction of investments (In the mean time) into the oil producing segment. No time or money wasted in the learning process.
Very positive since the oils carry a 50 to 100% increase in gross margin. Being Curacan doing it, I give it a 70% at least. As an example a $5.00 gram of raw material will generate $8.5 when sold as oil.
Oil is (the future) where the money is... It's already happening in Canada.
I personally believe this approach to the oil production segment is very good because GB can remain focused in the "MCCM" (complex compounds) developing core business. Paying a little bit to an expert to produce your oil sounds good and efficient in this case since GB Sciences is a Biopharma company and not a regular cannabis retail company.

4. Planning to expand this relationship into other States is very positive too.

It seems to me that both companies will benefit from the partnership...

Anybody care to expand or correct????
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