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Lastest Quarterly Filing
In the latest quarterly filing ending Sept 30, 2013, there is some good news. I think. Sales rose ~88% from $111K June 30th, to ~$210K Sept 30th. This is great news, as the cost of sales has remained fairly constant at ~$320K for the quarter and ~$120K for financing). Now project development and admin costs have stayed constant, but these costs would be comparatively static with numerous more systems installed in various cities.
Also, it should be key to note that many of the new products introduced, as well as numerous more customers (Loblaws, Hotels, etc...) were not in place until the September time frame and so there should be more grow in the revenue.
At this pace, revenue would be ~ $1 Million per year. And as I estimated in the past, I believe that we could see ~ $2 Million revenue which would move Alterrus into profit territory (not including R&D & General Admin, as these costs would stay fairly flat with new growth).
Thanks, so then the Vancouver facility is designed for a more commercial production as the packaging takes place in one specified location at the end of the tracks, therefore the trays do move toward the package area. Also, in terms of the lower trays, though they are under the upper trays, the movement of the sun from east to west, and the movement of the trays, should allow sunlight to hit nearly every tray, even the lower ones at some point. As the system is moving in several axes.
Forgot to mention that as an engineer you will more than likely seen how this system can be redesigned to use a "Train Track" type conveyor therefore bringing the individual hangers to the harvest area and a simple hanger designed that lowers itself down for the Loading and Unloading of the trays. This is a more commercial system,
The track and hanger design was put forward by me after meeting with two of the Largest growers in the UK but knocked back as not needed.
You have hit the nail on the head, In commercial systems the plants move to the staff or to the machines.Also as you mention the hangers move to distribute light but there is still a shadow from the tray above and this has also now been noticed by Alterras as a statement I read said that the lower trays where smaller plants which was expected ( this can easily be overcome).VertiCrop is and can be a commercial system but it needs to shown to be used as a commercial system and this as it is now is not been done. Again as you mention the nutrients could be added to the middle trays but to do this would be more difficult that watering all the trays with the exact nutrients they require, again this is still in place in the UK VertiCrop.
I personally can not understand why they have an expensive watering system ( Priva) state of the art system and using it to the Very lowest capacity ( Like buying a Bus to carry two people)
Also the tray system lends itself for the growing of Salads and Baby leaf / micro leaf.Even as they are now all this can be automated from the unloading to the harvesting and packing therefore cutting the C.O.G.S To sell the system this should be in place so the customer / Clients can see this working.
As mentioned in an earlier post by Terry a Vertical system on one nursery can grow Potted plants as well therefore lending itself to a more diverse growing of crops with the same system. If you go to my face book page you will see a Chilli Pepper grown in a complete dark room in a vertical system this would be very difficult to do with the Verticrop as it is now.
Horticulture has some very sophisticated systems click the link for a few of them.
http://www.localsalads.com/commercial-growing.php
Commercial Growing
Now, I am reading alot of information here, but my big question is your comment regarding "Commercial Growing". You state that Alterrus' system is not designed for commercial Growing. can you explain/point out why that is. I may be missing what you mean.
In terms of the process, as an engineer, the system seems almost inherent to be a commercial growing process, in that the trays are stacked, automatically moved to evenly distribute light. In terms of the nutrient application process, I would think that if not enough nutrients are reaching the bottom trays, additional nutrient feeding systems could be placed in the middle of the tray systems as well.
Now, my back ground comes from a manufacture engineering process, and particularly from one that manufactured products in the US, which required laborers building the components. Yes it was difficult to compete with the Asian market, but strong marketing, brand equity, and high quality products kept the company profitable (and still to this day). However, that said, it does not come at a price, as the manufacturing processes are continually changing, simplifying, and reinventing themselves through engineering. That said, the labor to pick, clean, and package these leafy greens at the Vancouver Rooftop location should continually be improved and reinvented. Moreso, a conveyor systems would actually be inherently more streamlined than one where the products are situated in row upon row of pots/planters. Therefore, in a sense, the product comes to the laborer, and not the laborer continually going to the product.
Anyways, I would defintely like to get your insight as to why the Verticrop system is not a commercial one.
Thanks,
Barunuuk
Terry here is a Video to watch for you this is how commercial growers do things http://www.eurofresh.com/envirolock/default.asp
The company has 330 acres of Glasshouses growing Tomatoes, Cucumbers & Peppers.
If commercial growers are to be supplied then these standards are expected. Also have a look at http://www.verticalgrowing.co.uk/Pages/default.aspx
This has a Video of the Largest UK glasshouse.
The Only Way is UP,
Terry
By using the technology out there even using LED Lighting you can reduce both the installation cost and the running by at least 60%. Again it depends on what type of light you use and also i you have any Natural light, The so called "Pink" room that Phillips use in one of there promotions says they can grow plants with no natural light ?What they do not say is that these plants are only in there for two weeks then they go into a Normal Glasshouse. Again if you go to my facebook page there is a picture of myself at the Valcent facility testing the Phillips lights, There is also some LED lighting that I have designed that produce the light required and only use 15 watts of energy and DO grow plants in a dark room https://www.facebook.com/pages/Local-Salads/144701455737404
Again this is why I state that to completely make these systems work it needs a commercial grower to lead the design otherwise people are trying to design what is already done when all it needs is redesigning to make it work for the use.
Example is I was told that a part I needed was not available and I would not get one anywhere, The part was available just not suitable for my needs I redesigned it and I had made in China and has cost me $2
Every Problem has a solution !! Every solution causes a Problem.
The Only Way is UP, thank you very much.
As a footnote only, I suggest we have many years of very sophisticated commercial growth with indoor lighting. Unfortunately there are no published details and cost analysis provided by marijuana growers.
Best, Terry
Ian and myself was Employed by Valcent and I do not think it was left HALF DONE as it works and has not failed and it was more commercially set up in the UK than it is now. So like all the post that said the UK team was responsible for all the Debt and funds mismanaged, If not for the UK team Alterass would not have had anything to pick up as WE built the system WE made the system work.
The reason for my post was two fold.
Secondly I was asked by a client to appraise a system they was looking at ( VertiCrop) I did not know this at the time.
I gave my opinion and said to them that it sounded like a system I redesigned but that system had a better watering and more automation and more commercially suited and I suggested that if they was interested then to contact Alterras vis e-mail.
They told me it was this system so I then looked and read about it more and I noticed that the watering is completely wrong for commercial growers to use ( None will use this style of watering) as the Nutrients are far to deficient in the lower trays, Also ther amount of water / feed ( Volume) will be lower Hence why even in there own words there are differences in the plants from the bottom trays to the top trays. There should not be and no reason why there is, Also I noticed that they are using scissor lifts to load and unload, Again NO commercial grower would use this system.
Alterras looks to have the whole Mess of "Valcent" sorted out, But they need to go to the next step or level to really make it pay off.
I have my own system far more commercial than the VertiCrop but Personally I still see the VertiCrop as my Baby as I took it from the sheet system in El Paso to where it is today (The tray Patents are still as far as I know 50% in my name ) and would love to see it installed and working world wide. But it still needs tweaking in one or two things and the Working Crop Management should be able to do this and design improvements as they are working with the system every day.
I have recommended the use of VertiCrop to the company concerned but with the Improvements that I mentioned, My thoughts are that Alterras should do these and not me and why have these not been picked up by the team working on the system.
The Only Way is UP,
I am trying to understand the series of posts. Please be so kind as to consider I have no other agenda than to understand the complaint and view of the current status.
The cash flow was one major problem as we did not know if we where been paid and had to lay expenses out and claim back.
Chris Bradford did his best with what he had, I had a new hanger design and a new tray that gave 10% extra yield per tray, We developed a new lighting design this made the plants grow more evenly. But then we was told that Valcent was going to relocate to the US or Canada and we had to tell engineers over there how everything worked and all the New designs (New to your world but commercial growers have been using them for years I just redesigned them to suit the purpose)
We asked for Job Security and this was not given and we was told that we had to tell them how it worked or leave the company.
With no Job security offered we had no choice but to leave, Personally I did not want to and no one else did but we had no choice.
I have seen many post on here saying the UK miss managed the funds but we worked on a shoe string and delivered a product that works the only step forward has been to build the system in Vancouver.
Which I applaud the NEW Team in doing but the next step needs to be now in moving forward, Again I have seen post about the product, How many man hours does it take each day to harvest and plant and how many packs per day are produced. The whole "secret" to this is producing the same amount 52 weeks a year not a glut then a small amount. Growing on a roof or in a glasshouse is one thing but we need to grow in Alaska and the Middle East tyo the same standard, to the same quality and growing on a roof top this will not happen the next level is Warehouse growing and it has to come BUT Commercially. Every one is doing roof top Growing not one company is doing Indoor warehouse growing on a commercial scale.
The winding up of the UK operation was certainly not the Company's finest hour and there are yet unresolved issues which remain to haunt them. Unfortuntely the legacy of El Paso was such that cost savings had to be made, but the manner in which they were implemented with respect to the Company's responsibilities in the UK does Alterrus management little credit. The team put together by Valcent EU's then Managing Director Chris Bradford, were capable of taking the company and its technology way beyond the next level of coporate development, but as Grahame Dunling suggests lack of recognition and ongoing concerns about cash flow took its toll. At least Bradford was able to ensure that all members of staff received what was due to them before or at the time that operations ceased, but ironically I understand there is some doubt as to whether Alterrus have ever fully discharged the Settlement Agreement they signed with him.
The BMS control system was designed by Ian Angus who again received no credit for his work on the Verticrop, and the system in Vancouver is only the second to be installed but if it was not for the UK team this would not work and Priva is an International company in Horticulture and they said it could not be done so Ian led the work for this.
VertiCrop is ahead of the game as they have a working system but it must be improved on it is not enough to be growing crops alone.
To stand still is a step backwards, Analyse what you have and see what and where you can improve it and what is your end goal.
There are many systems out there but not many have commercial potential.
Yes the design did come from El Paso and yes it was designed with a hanging sheet system and that is what I first saw and I told them it would never work for growing plants or as a commercial system.
( I was at FDM Herbs and was designing the AlphaCrop ) over the next twelve months Valcent asked me in general terms how to improve there system, I gave advice and helped with NO PAY for 12 months and they changed the design to a tray system from the sheet system. But they could not get it to work as I had not told them about the hangers or the tray design needed. They then got an order from the Zoo but could not deliver a working model, and that is when I was offered a position with them as they had the deadline with the Zoo and needed a working prototype. This I delivered within the deadline and on budget. But we received no credit and was cast aside as been the people who wasted money, But our hands was tied and could only do what we was told to do.
I also spoke of the need for a simpler less complicated system was needed for the masses, Not so much in the Capital ( growers spend this anyway) but in the way the whole process works.
ie NO grower plants by hand and NO grower harvest by hand, However this is done by Local Garden now, by changing the process you could cut the cost of the product to market therefore increasing the bottom line.
Every time a man moves it cost money, it may go against the grain but you still employ labour just not doing the jobs that automation can do. 10 cents saved on a package and 100,000 packages is $10,000
and with the best will in the world people do not work at the same pace or to the same quality seven days a week. But people can keep a machine supplied that can do this. I agree that R&D is needed, but it is already done in ways that the VertiCrop can be improved and the whole process made more commercial.
If I did not believe in Indoor Vertical growing then I would not be still doing it.My CV is on here http://www.localsalads.com
I was under the impression that the original VertiCrop design came out of the Valcent R&D facility in El Paso, where it was being experimented with as a sideline to their pursuit of a techology to extract fuel oil from algae. The latter came to naught but in the process it cost the company millions of dollars. In fact the whole company would probably have gone under at that time if the UK mangement team had not been sufficiently impressed with its potential to take development of the VertiCrop system forward, thus providing Valcent with a viable business plan. Ongoing R&D is an essential element in the commercial development of any new and innovative product, and even with the Vancouver facility now in production I see this as a weakness in the current Alterrus structure. In effect this has been a weakness since the decision was taken to wind down the UK operation in 2010/2011, though in fairness Valcent (EU) had been struggling through lack of adequate funding for some time and had lost key personnel such as Grahame Dunling as a result of this. My current concerns are that the VertiCrop is a relatively high(capital and operating)cost system seeking to prove itself in a market that appears to be moving towards simpler and more cost effective options.
Hi, Barunuuk.
http://issuu.com/maximum-yield/docs/my_uk_jan_feb10 page 102
This says we was looking at LED lighting for the Verticrop there are a number of ways this can be done and as it uses a glasshouse with Natural light it is real easy to do. The problems in quality will show soon between the bottom and the top trays due to lack of daylight, It has been noticeable now in the growth.
http://www.hortweek.com/News/945138/Glasshouse-Technology-Vertical-integration/
This was a horticultural magazine with an article but NO commercial growers took us up on any enquiries and for this to happen they will have to remove the Scissor lift operation and automate this.
( It was and still is automated in the UK )
Post 738
I am lead to believe that in the Netherlands, the Dutch are now widely employing flood and drain and floating table hydroponic systems which are super cost effective, while in the UK there is at least one company following this lead
WOW as usual commercial growers have been using this for years and some in a Vertical fashion. Dont get me wrong I am pleased that the Verticrop works as that is why I first joined Valcent as it was known then, and we redesigned it to make it work. We Re-designed the system as we built it with NO drawings to work from. I designed the AlphaCrop for Valcent and I also offered them a rotating Ebb-Flood Vertical Bench system but this was turned down as they insisted that they wanted the Verticrop to work. I designed the trays for the Verticrop both the flat edge ones and also the Gull wing type, I also Re-designed the hangers etc. I designed a hanger that included the watering inside it, this would have worked better than how it looks as though they water now. By letting the water drip / Flow down each tray to the next it certainly makes things simpler but any grower worth his salt would not use this method. They took a commercial system and went back one step to make it more home hobby.
I am not promoting my self here just pointing out that we used known commercial systems to make this work.
I have redesigned LED lighting see my facebook page or my web site
Google my name to find it Grahame Dunling ( Second page is my new web site)
Thanks Terry. Not sure what you are meaning by Taco Bell, but this was a Californian franchise. Yes they franchised quite early on, but they commercialized in California before moving nationwide let alone global. Moreso, their major expansions came after they were purchased by Pepsi (Pepsico)which is what provided them the funding, and marketing power to ramp up quickly. However, back to the beginning, they needed to succeed locally, and then nationally before they were ever able to go global.
Hope that helps.
Barunuuk
Happy Thanksgiving, Barunuuk and everyone.
Thanks Ravena. Yes I think they need to become profitable here in North America before they can think globally. But I do think that the sky is the limit when it comes to global systems. And since China is already dealing with food shortage/supply issues, there actually may be more interest in Alterrus developing a system over there co-currently. Hopefully this doesnt deter away from their North American expansion. Look at Lululemon. When they closed their Asian stores and focused solely on North America, they better positioned themselved to return to Asia sevens years later with a healthier brand to sell to that market base.
Ravena,
I think what I like about Alterrus is that they have developed a brand, Local Garden, which can relate to any market. I see the Blue Ocean Strategy, in that they are looking to great more demand for their product, by building a brand. I believe that this is the edge they will have over other competitors. Look at Lululemon. Yes you are buying yoga pants, but you are also buying the brand, and that is why people are willing to pay more for the Omega symbol than they would for a pair of Athleta Yoga Pants.
And the Local Garden brand is able to translate to any market; Vancouver's Local Garden; Pittsburgh's Local Garden, Orlando's Local Garden, etc...
This is what really gives me the optimism that their is a strategic direction that Chris Ng has given Alterrus, and what will make them much more successful. Also, his eye is on commercialization, not just a sustainable system in one city. So if Vancouver's system shows a profit, then you know that there will be more systems in more cities soon to follow. And with the Epcot Center system, Alterrus may just get the exposure and attention to retain the necessary funding to continue expansion.
Morning, Ravena.
Claim jumping is practiced as a fine art in America like nowhere else in the world.
Two American companies who survived near death and are alive only by moving their sphere of operations for their IP to China and Chile, respectively, are SCLN and GALT.
The second case is far clearer, more dramatic and less muddied by externalities but I included the first for the China connection.
I would provide some details but I do not wish to have the post deleted for being OT.
Best, Terry
The wisdom of pursuing opportunities in the Chinese market before securing a market base in North America must surely be open to question? Not only are the related costs of developing this market considerable, but anybody who has ever done business in China is fully aware that respect for design rights and patents is a fairly scare commodity. One thing is for sure, if the potential for the VertiCrop system is recognized in China, low cost copies will be appearing in fairly short order elsewhere.
Hi, Ravena.
I commend your continuing optimism Barunuuk, and it may well be that your assessment of the current situation will prove to be correct. I certainly concur with your suggestion that Alterrus concentrate their efforts in North America as there would little for them to gain at present by attempting to move into global markets. However, Alterrus may well be ahead of the "vertical farming" game in with the VertiCrop system in North America but my concerns still center on their ability to retain this edge, with no signs yet of the all important major injection of funds which they so badly need. Outside North America improvements in hydroponic, lighting and automated operating technology advance steadily. I am lead to believe that in the Netherlands, the Dutch are now widely employing flood and drain and floating table hydroponic systems which are super cost effective, while in the UK there is at least one company following this lead, and another currently developing a technology that combines the advantages of vertical growing with the lower operating costs of these simpler hydroponic systems. It must be only a matter of time before such "state of the art" systems(plus whatever else may currently be under development in China and Japan) appear in the North American market.
Not to be the eternal optimist, but I see more positives as of late than may seem apparent. I believe that Alterrus is taking the right step for further expansions by distancing itself from any UK operations. Once fully commercialized in North America, with full revenue, that may be more easily addressed at a later date. It shows me that Alterrus is focused on commercialization in North America.
Secondly, the fact that Local Garden products have substantially increased with new salad blends (Vancouver Special), and new products, such as Basil, Micro-Greens, and Radishes, this should greatly increase revenue for the company. Furthermore, their customer base in Vancouver has tripled since early 2013, which will be reflected both in revenue, and their market base.
Lastly, the Epcot Center system, and the settled of Debt places the company in a much better position to continue expansion. The last key to this puzzle is showing profitability at their Vancouver location. Remember, they have barely been operating a year, let alone constantly supplying customers a regular product for a year. Much of their costs have been upfront, marketing, and startup costs, that should not continue through normal operating cycles. So once profits are realized, and Alterrus is able to prove a sustainable business model, further financing and additional locations will be much more readily available. In terms of competition, there is no other "Vertical Farm" that has positioned themselves to be a national brand within the US and Canada as has Alterrus. FarmedHere, Gotham Gardens, The Plant, and the Montreal based Vertical Farm, all have positioned themselves to target a specific geographic market. And all utilize soil for their growing, which requires additional square footage, labor and water usage. There is always danger of competition, but in this instance, it seems more apparent that Alterrus is the one that is the danger.
Lastly, Vancouver is the location of their R&D facility. Remember as well, they have access to the floor below for further expansion.
I believe the BEIG trials were not limited to Spinach, but it is disappointing that the postive indications we were getting at one stage, with the possibility of some kind of ongoing contract, appear to have come to naught. It does seem likely that the debts that were left uncleared when the UK operation was wound down have influenced the decision to pull out of the UK altogether, but it is highly unlikely that this will make those debts disappear overnight. In the meantime there must be concern that in spite of months of apparently successful operation in Vancouver, there is still no sign of any deal in the pipeline with regards to further expansion. There must be some danger that the VertiCrop system will be overtaken by developments in hydroponic technology elsewhere, and without an effective R&D operation, which the UK provided, what are the chances of Alterrus waking up one morning to find they have a dinosaur on the parking lot?
Positive Results
Let me clarify. If there are positive results on the production of Spinach, that in itself doesnt make a business case for Alterrus in the UK. The would need to offset the production and ramp costs, along with potential revenue with Bird's Eye, against the large debt and UK Creditors it currently has. Alterrus had been in talks with several of the UK creditors to try and come to an agreement, and from what I have read/heard, the UK creditors have been very hardnosed. So reading between the lines that the Spinach trials were not successful seems like a pretty big assumption. If anything, I would assume that talks with the creditors broke down and went nowhere, causing Alterrus to refocus efforts in North America. Why do you think Canada is the location of the first full scale installation and not the UK.
To me, it's pretty clear from the press release that the BEIG stuff is over. Hopefully, we'll get more clarity on the quarterly. But if results were positive, I'm sure Alterrus would be in a hurry to get that news to market...
Actually, I would think that this would give Alterrus the advantage. This would probably mean that a Verticrop system would be that much more competitive in London than Vancouver. The Verticrop system does use natural light on the rooftop facility in Vancouver. I am not sure how much they supplement with UV light. However, with LED lights and new energy conservation technologies, electrical costs could be kept at a minimum. I would think logistics and such would be the greatest costs, so having a facility in London would give Alterrus a much greater competitive advantage.
I wouldn't infer that the results were negative. Alterrus also has a lot of debt and creditors from back when they were Valcent and into bikes and algal biodiesel development. I would think that one of the big reasons they decided to cut ties with the UK was the fact that they would need to address the debt and creditors there prior to any set-up or business venture. I would think that this played a major role in the decision to cut ties with all operations in the UK, and move their R&D efforts to North America. But that's my inference.
Micro greens - new blog.
http://www.localgarden.com/local-blog/
here is a website to compare cost of living.
Vancouver vs. London
http://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+Kingdom&city1=London&country2=Canada&city2=Vancouver&displayCurrency=CAD
the cost in C$ terms for a head of lettuce is the same, however the cost of basic utilities in London is 50% higher. And logistics too.
The company has taken the opportunity to move its research and development activities to Vancouver, and will be closing its U.K.-based initiative by Dec. 31, 2013. The VertiCrop work done in conjunction with the Paignton Zoological Park has been instrumental to ASI's development. The timing is right for moving these activities to Vancouver where the company's commercial operation provides added insights to its R&D efforts. This will reduce monthly burn rate as well as reduce communication costs.
As a result of this move, ASI will, as planned, have completed its trials for BEIG in the United Kingdom, effective Dec. 31, and will continue to share results achieved in Vancouver.
The inference is mine. I suppose you could read this differently but if the trials were successful, I doubt they would be pulling out of the UK. I read this as .... the trials have concluded and if we developed anything new in Canada we'll be in touch.
As per a previous post I put up, they were working on trials to compare the input costs vs. output costs. The problem, as I see it is the high cost of electricity in the UK. Hard to make the margins work as that is a big part of the expense structure.
Spoke to several grocers that sell the Local Garden products. Looks like demand is quite high. The salads last maybe 2 - 3 days before selling out. The basil sells for ~$4, which means that there is a good amount of margin on these. I believe that revenue from Basil will boost the revenue for the company. Most all the products are ~ $5 depending on the grocer. Also, it looks like the mark-up on these products are in the $1 to $1.50, which means that my past calculations of $2 - $2.50 revenue were extremely conservative. So this means that these products, lettuce, kale, arugula, microgreens, achieve ~$3.50 to $4 per package from the grocer. The restaurants most likely receive a discount on these but buy in bulk and continually. Nonetheless, I am expected further increases in revenue as Local Garden expands their product lines, and their customer base, as well as optimizes their production line.
In the next couple weeks, I may do some more number crunching to get a better idea of where they are or could be with revenue using these numbers. Very interested to see their revenue numbers at the end of this month.
Where does it say that the Bird's Eye Trials were not successful.
btw,
new century holdings = Stephan fane
Grr.
It's been an interesting couple of days for Alterrus including some positives and some negatives.
Comments.
1) Clay Haeber coming to the board seems to be a good fit. He is another ex- Lululemon guy and therefore likely quite familiar with both Christopher Ng and Darrell Kopke at Institute B. As per the press release it appears his area of expertise is logistics and IT.
2) Reduced Debt. $3.4M in debt has been swapped out with equity. A double-edged sword. They desperately needed to reduce the negative equity situation however diluting at $.07/sh is massive. Greater than 50%.
3) Bird's eye trials are done. Seems like in the end, this didn't work out.
4) Announced a new MOU with a prospect in China. Another double-edged sword. Sales are good. Reverse engineering the system would be bad.
5) New promissory notes issued: $156k
6) Two new legal claims: Landlord in UK GBP 55,113 or about $88,725 US. And, El Paso Texas of $57,931 US. The sum is $146,657 US.
7)Looks like they are walking away for the UK outright on Dec 31, 2013.
Using the June 30th, 2013 balance sheet:
Total Assets:...............................$2,208,591
Total Debt:.................................$7,036,307
Total Equity:...............................($4,827,716)
Shares:.....................................92,836,003
Recent Actions:
Debt Reduction:.............................$3,416,831
New Notes:..................................$156,396
Net Debt Reduction:.........................$3,260,435
Adjusted Balance Sheet:
Total Assets:...............................$2,208,591
Total Debt:.................................$3,775,872
Adjusted Equity:............................($1,567,281)
Shares:.....................................141,647,871
The company remains in a negative equity position. Future growth has been diluted by north of 50%. Two new legal claims totaling about $145,000 have developed.
The company really needs to show some significant progress on Verticrop Vancouver in the next couple of quarters. If the company can show that the facility can generate + cash flow, they'll have a better chance at attracting new money even though they are in a negative equity position. Without positive cash flow, they are digging a deeper hole by burning what little cash they have and they will have trouble attracting new capital.
One positive seems to be the onset of microgreens. The company has been promoting these lately (blog,twitter). This is an interesting product. According to their blogs, it's a unique, living, quick growing crop with a huge nutritional kicker. Given the quick turnover and likely attractive pricing... if this product catches on the margins could improve nicely. I think they get 2 1/2 to 3 microgreen crops per lettuce crop.
http://www.localgarden.com/local-blog/
One other thing to add: Here is the list of debt holders converting to shares. Clay Haeber wasn't a related party at the time but is now on the board.
Clay Haeber, Institute B, Christopher Ng, Steve Fane have been funding this thing and are the bulk of the converted shares. So, although the company is struggling a bit, you've got some very motivated leader who are eating their own cooking!
http://www.cnsx.ca/cmsAssets/docs/Filings/2013/ASI_Shares_for_Debt_issuance.pdf
Hi, upshegrows.
Huge news I had not seen reported.
Thank you.
Here is the dilution I was talking about...
Alterrus Systems Inc
Symbol C : ASI
Shares Issued 92,836,003
Recent Sedar Documents
View Original Document
Alterrus Systems issues 48.81 million shares for debt
2013-11-08 09:29 ET - News Release
Mr. Christopher Ng reports
ALTERRUS SYSTEMS INC. ANNOUNCES SHARES FOR DEBT SETTLEMENT AND CEO CHRISTOPHER NG PROVIDES AN UPDATE ON COMPANY ACTIVITIES
Alterrus Systems Inc. has settled $3,416,831 of debt owed to 17 creditors by the issuance of an aggregate 48,811,868 common shares of the company at a deemed price of seven cents per share. The common shares issued to the Company's creditors are subject to a hold period in British Columbia expiring March 9th, 2014. In addition the Company has issued two year 8% Promissory Notes to 2 creditors in the sum of $156,396 to offset the creditors current positions.
Christopher Ng, CEO, reviews important developments
ASI has a number of important events to report to shareholders that have occurred over the past several weeks that are important to the future direction of the Company. These are as follows: -- Mr. Clay Haeber has been appointed to the Board of Directors of the Company effective November 1st, 2013. Clay brings a wealth of business experience to the Board and is a highly accomplished, entrepreneurial IT Director with 20+ years of experience leading high-performing teams to develop, implement, and manage innovative technical solutions that drive strategic business growth, streamline operations, and enhance productivity. Clay currently holds the position of President of Logistics and Technology for Institute B. Prior to institute B, Clay was the Director of IT and acting CIO for lululemon Athletica, a Yoga inspired athletic-apparel company with $1 Billion in annual revenue;
Clay's experience in the technology field will be helpful during the growth phase of ASI where technological advances are the key components for productivity and efficiency.
-- As reported the Company has settled $ 3,416,831 of debt owed to 17 creditors by the issuance of an aggregate 48,811,868 common shares of the Company at a deemed price of $0.07 per share. In addition the Company has issued two year 8% Promissory Notes to 2 creditors in the sum of $156,396 to offset the creditors current positions;
The preparedness of our creditors to convert to equity is a real testament of their belief in ASI's ability for success.
-- The Company has taken the opportunity to move its research and development activities to Vancouver and will be closing its UK based initiative by December 31st, 2013. The VertiCrop(TM) work done in conjunction with the Paignton Zoological Park has been instrumental to ASI's development. The timing is right for moving these activities to Vancouver where our commercial operation provides added insights to our R & D efforts. This will reduce our monthly burn rate as well as reduce our communication costs; -- As a result of this move ASI will, as planned, have completed its trials for BEIG in the UK effective December 31st and will continue to share results achieved in Vancouver.
The ability to have real time R+D results in our own backyard is more efficient and it makes more sense that we have a commercial operation to reflect our data upon.
-- ASI is in the process of executing an MOU with prospective client in China to showcase VertiCrop(TM) technology;
Lethal GMO's.
upshegrows, barunuuk:
Radishes have to be nearly the least nutritious vegetables ahead of only garlic as far as I know. Garlic's reputed ability to prevent colds could be explained by its odor keeping contagion at bay. I got a kick out of Dean Edell claiming that whatever ability garlic had to prevent colds vanished when the smell was removed. In my tiny corner of the world with a hefty Italian population, many Italians took garlic pills to ward off colds without the odor problem. Wil E. Coyote is not the only everlasting failure.
A real estate speculator in Portland, OR, bought vacant plots of land in very desirable areas and grew radishes nearly year around with agriculture workers moving as required from place to place. The plan seemed ingenious but can you imagine how many radishes you could grow on a rotating basis on a single acre? Seemed like he could supply the entire country with all they could possibly use.
And now radish greens!
I never heard of them before but it appears our employment problem should be ended.
Here is one of many blurbs for micro greens in general:
I thought this blog was quite interesting.
http://www.localgarden.com/local-blog/
The micro green could command a nice price but according to the blog they can be harvested weekly. Lettuce, I believe is a month long crop. Those could produce an operational lift it they catch on.
Not Big News, but interesting.....
Local Garden has added a new product to their leafy green lettuce line. Not sure if it will be permanent, but it's called the "Vancouver Special". Named after a certain stucco type housing with a brick base, that are seen around Vancouver. Always a good sign when new product lines are introduced, showing a focus on expanding their market.
Morning, upshegrows.
I am familiar with the name Dundee from geothermal which has never gotten the respect it deserves. In Iceland there have even been bananas grown utilizing dirt cheap geothermal. Commercial production was under consideration. I don't know that is the same Dundee or if Ned Goodman is in any way involved with geothermal but it appears a credible name on both counts.
It is not apparent to me what sort of patent protection URBF has for its cubic agriculture nor if there is any similarity to Alterra's Cube but the names did ring a bell.
It appears to me from a great distance URBF ran into some trouble with lots of wasted? motion.
Best, Terry
that's interesting. I have a lot of respect for Ned Goodman. but it looks like he took a huge equity stake for next to nothing $1M.
There it is:
Interesting your frustration with Windows 8.1. On a side note to Alterrus, and more on the tech side; MSFT may soon just be in some deep waters (if not already in my opinion). Melissa Shilling wrote a great article back in 2011 about MSFT facing the Segment Zero Threat. In less than 3 years I believe the new PCs will be our phones, with bluetooth connections and cloud based software. The tablet is the stepping stone to mobile PC-phones. Imagine coming to work, dropping your phone on your desk, and the monitor, keyboard and mouse all connect to it, all programs are run cloud based. You only need one program, and that is Internet Explorer (or by that time, Google Chrome) and there you go, no more desktops, or laptop PCs.
MSFT has < 3% market share of Smart Phones, and < 7% share of tablets, and had to come out with their own tablet (the Surface) to even compete. If Blackberry cant catch up, how can MSFT (and the BBRY playbook came out over 2 years before the Suface). This gives you an idea of how first movers can really shake things up and disrupt the status quo. Netflix forced Blockbuster & Movie Gallery to claim bankruptcy in less than 8 years. It will be interesting what MSFT does with their extra cash to keep competitive, but history shows, you cannot buy innovation, you need to foster it, and so holding onto that money for a rainy day is wasting away the research and innovation it may be used to develop for MSFT.
Great Article:
http://www.stern.nyu.edu/experience-stern/faculty-research/microsoft-threat-melissa-schil
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Alterrus Systems Inc. is an environmentally responsible, publicly trade company (CNSX:ASI & OTCQB: ASIUF) located in Vancouver, Canada. Alterrus has created a sustainanle vertical growing system, Verticrop, that grows fresh, nutritious leafy green vegetables in urban environments wher ethey are to be consumed. VertiCrop high density vertical growth system, technology that provides a solution to rapidly increasing food costs caused by transportation/fuel costs spiraling upwards with the cost of oil. Together with higher cost comes a reduction in availability and nutritional values in the food we consume. Using a fraction ofthe resources needed for traditional field agriculture, this patent pending technology generates substantially higher yields than conventional farming and was sleected by TIME MAGAZIN as one of the world's greatest inventions.
Developed over several years by Alterrus, the system is designed to grow vegetables and other foods much more efficiently and with greater food value than in agricultural field conditions. The VertiCrop system demonstrates the following characteristics:
Share Capital as of Dec 1, 2009
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Estimated Market Cap $1,052,526 as of Mar 30, 2010 |
March 23, 2010 | Valcent's AlphaCrop Prototype Is Operational | |
March 10, 2010 | Nike, U.S. State Department, Nasa and USAID-Sponsored Competition Picks Valcent as One of the Ten Best Companies in the World for a Sustainable Future | |
March 08, 2010 | Valcent's Smaller Vertical Growing System "Alphacrop"(TM) Received Strong Sales Approval From Its Master Distributor for the United Kingdom | |
January 26, 2010 | Robert Kennedy Jr. Presents Verticrop At Us Mayor's Conference | |
January 18, 2010 | Director Resignation | |
January 08, 2010 | Dubai Forum Presents VertiCrop Vertical Farming System | |
December 02, 2009 | Robert F. Kennedy Jr. Will Join Valcent's Advisory Board | |
November 13, 2009 | Time Magazine Names Valcent's Vertical Farming Technology as one of the Top 50 Best Innovations of 2009 | |
October 27, 2009 | British Parliament Backs Valcent's Verticrop (tm) Systems | |
October 22, 2009 | Stephen Kennedy Smith Jr EMLINK LLC Engaged by Valcent to Launch Verticrop in U.S.A. |
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CONTACT
Investor Relations:
Email: cng@alterrus.ca
Address: 120 Columbia Street
Vancouver, BC
Canada V6A 3Z8
Telephone: 604-720-4223
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