Sunset Island Group Provides Clarity On Expansion Plans
SAN CLEMENTE, Calif., Aug. 24, 2017 /PRNewswire/ -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced specifics today concerning the company's plans for expansion.
CEO T.J. Magallanes stated, "We received a lot of feedback yesterday on the 8K that we filed and most of the comments were due to a misunderstanding or misinterpretation of the information provided. I felt it necessary to share with you today specific, detailed information that's from the heart. Our company is poised for explosive growth. We are passionate about what we do and we are proud of our accomplishments to date. Our team has worked hard to get us to this point. We now have three options. 1. Continue to operate within the confines of our current 22K square feet. 2. Expand to an already pre-determined minimum of 152K square feet, or 3. Swing for the fences and expand quickly in phases to a total of 750,000K square feet. For us, option number one is off the table. It would be unfair to our operations team and unfair to our shareholders. Option number two is already in the works. Option number three is still on the table, so we need you to understand something clearly. We have a great plan of execution. It is laid out and ready to implement step by step and we would ask that shareholders trust us to execute our plan. The misconceptions today seemed to come mostly from how we presented the plan for the S-1 so let me lay that out for you step by step."
Mr. Magallanes went on to say, "Today at opening of business, our company has approximately 4,031,771 share outstanding. At close of business today, our company will have approximately 4,431,771 shares outstanding or an increase of 400,000 shares. In exchange, at close of business today, the company will have placed into our hands $340,000 in expansion capital. The particulars of the S-1 and how it will work, how we execute the strategy, the long term preferred share conversion, etc. are all irrelevant at this point. Again, we ask that you trust that we are doing what is in the best interest of the company and shareholders. What we are telling you is that with the first tranche, 400,000 shares will be added to the outstanding and $340,000 will be placed into our account. On a side note, we do not like debt of any kind and throughout the expansion, for the life of our business, we want to keep debt completely off the books or at least to a minimum. We currently have $300,000 in debt and that will be paid off in full immediately. That will leave us with $40,000.00 in expansion capital from the first tranche. Each subsequent tranche will also be negotiated in 400,000 share increments and we expect similar or better results with each."
He continued with, "We currently have 22K square feet of space and to expand to the pre-determined minimum of 152K square feet, we will need to raise approximately $1,560,000.00 in expansion dollars. Using the same or similar results to the first tranche, that would require us to add a little under 2,000,000 additional shares to the outstanding share count. So to expand to 152K square feet that will generate approximately $200.00 annually per square foot of grow space, we project the need to have approximately 6,267,000 shares outstanding and no more than 7,000,000. To keep this release from getting too lengthy, suffice it to say that to determine a projected share count, revenue projection and equivalent expansion capital raised to max out 750,000 square feet, the same calculations are applicable."
Mr. Magallanes finished up with, "What we are telling you as clearly as possible is we have a unique and effective way to raise funds in place, a plan to keep the outstanding share count to a minimum, a way to create explosive revenue growth without the creation of any substantial debt, much less toxic debt and at the same time doing so without the payment of any salaries to officers of the company, only monthly dividends; the exact same dividends received by our shareholders. Now I'm not familiar enough with all of the various places where people congregate online to discuss our stock, but apparently like all other topics these days, there's ample opportunity and multiple locations where people take the opportunity to share false or misleading information about our company. What I've covered with you here are the facts and they are indisputable. As I've stated before, I spend the majority of my time focused on the operations and I'd like each of you to see it in person if possible, so let me personally invite any and all that still have questions about our business, our expansion plans or just questions about the cannabis business in general to consider joining us on September 16th. We would love to meet you in person, we'd be glad to show you our current grow facility and the expansion square footage as well. On a final note, I hope that this clears up any confusion and makes it crystal clear where our company is headed and we ask for your continued support."
The Company has decided to hold an additional shareholder event on September 16, 2017. This is due to the overwhelming requests from shareholders. The Company will pick up those that have reserved a spot for the tour at 10:30am at the Courtyard by Marriott Salinas Monterey (located at 17225 El Rancho Way, Salinas, CA 93907) and drive them to the farm. On this visit to our current operations, we will also take the time to visit the proposed 750,000 square foot expansion facility which is all interconnected and all located on the same property.
Sunset Island Group, Inc. Announces Shareholder Dividend for August
San Clemente, CA -- August 22, 2017 -- InvestorsHub NewsWire -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced today that the company will issue a monthly dividend of .001 per share based on the projected revenue performance for the month of August 2017. Each monthly dividend going forward will be based on actual monthly revenue performance.
CEO T.J. Magallanes stated, "We shared this recently in an 8K, but let me make it clear to our shareholders; our goal is to become one of the largest cannabis cultivation entities in the state of California with the ultimate objective of becoming an acquisition target. An attractive acquisition target is obviously one that generates impressive revenues with reasonable operating costs, but we also believe that an attractive acquisition target is one where the established culture and integrity of the business is heads and shoulders above the competition.
Mr. Magallanes went on to say, A business of integrity is one that looks out for all parties involved. For example, (1) We are growing our business without the use of any convertible debt. (2) Within days, we will have approximately 4M shares left outstanding as we convert shares held by officers from common share status to preferred. (3) None of the officers of the company take a salary. Officers are compensated via the monthly dividend the same as all other shareholders. (4) All shareholders will continue to receive a monthly dividend on an ongoing monthly basis. (5) We have implemented strict protocols which have allowed us to receive the highest cannabis certification available to cannabis growers. These policies and procedures will also allow for efficient scalability as we expand the business. (6) The first phase of expansion is expected to move us to a minimum of 152K square feet with the possibility of additional square footage being negotiated. These are just a few of the examples of how were building a business of integrity that our employees, business partners and shareholders can be proud of for years to come.
CFO Valerie Baugher stated, "The dividend will be paid out to all shareholders of record on September 15, 2017 with an expected payment date of September 25, 2017. Each shareholder of record will receive either a check from the company or a cash payment will be deposited directly into a shareholders investment account by their broker. More specifics will be provided on that same day in an 8K. As always, we thank you for your support."
8K - August 18th
The Company has received questions regarding the Company’s operations. The Company felt it was appropriate to answer the questions through an 8-K instead of emailing the individuals directly.
Q1. Would the company’s officers consider cancelling their common stock in exchange for preferred stock?
A1. The Company’s officers’ are agreeable to this and will begin the process next week to complete the transfer of the common to preferred. The cancelation of the common would reduce the outstanding share count to approximately 4 million shares.
8K - August 16th
On August 15, 2017, we met our current leaseholder regarding leasing additional square footage for our first phase of expansion. The company will be conducting follow up discussions in the coming days on leasing between 130,000 and 205,000 square feet of the 750,000 square feet the landlord has available for lease.
On October 18, 2017, the company will hold a facility tour. Anyone interested in joining the tour should email us each person's full name and copy of driver's license to firstname.lastname@example.org. The group will be picked up at a designated location and driven to the facility. No phones or cameras will be allowed.
Sunset Island Group Announces Three Year Lock-Up Agreement On Over 90% of All Outstanding Shares
SAN CLEMENTE, Calif., Aug. 15, 2017 /PRNewswire/ -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced today that the company is executing a formal three year Lock-Up Agreement with respect to 91.94% of all outstanding shares.
CEO T.J. Magallanes stated, "We are in this for the long haul. As we expand our operations, we will do so with the focused mindset of capturing as much market share as possible. In order to provide one more example of how committed we are to both the business and the shareholders, Valerie and I will be locking up our combined 46M shares for the next three years."
CFO Valerie Baugher stated, "With this step, we are reaffirming to our employees and shareholders that we believe strongly in the vision of the company. We want everyone involved in the business end of things to focus strictly on the operation and not worry about stock value, market cap or anything else unrelated to building our business and our brand. If we do so, stock value, market cap, etc. will take care of itself."
Ms. Baugher finished up with, "As mentioned in a previous release, we will provide updates on our expansion and specific details on the monthly dividend later this month. As always, we thank you for your support."
Sunset Island Group To Implement Monthly Dividend For Shareholders
SAN CLEMENTE, Calif., Aug. 7, 2017 /PRNewswire/ -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced today that the company will implement a monthly dividend to be paid out on a consistent ongoing basis to shareholders of record.
CEO T.J. Magallanes stated, "Let me first cover some details and numbers of interest."
1. We have a top notch team of professionals that are experts at what they do. We currently have 15 employees that work as part of our planting crew, our harvesting crew or our trimming crew. Please note that additional employees will be added as needed as we expand operations.
2. Each "Bay" of our overall grow space is comprised of 2,000 square feet. As we expand our operations, this will always remain a constant for scalability and efficiency.
3. Bays are set up on a rotational basis so that our company harvests year round. Each bay can be harvested three times per year. In order to ensure three quality harvests per year, we have implemented the MAPAL Agro system. (For more information, see the link below.)
4. Most grow facilities plant directly into the ground or in pots. From day one, our company chose to implement this state of the art program to ensure cost savings, consistency and the best possible return on investment.
5. We are the only company in the state of California and one of only two nationally utilizing the MAPAL program. This allows us to reuse or recycle drainage water and nutrients and it cuts water usage compared to our competitors by up to 70%.
6. From August 1st through August 14th, the company is projected to generate $158,000.00 in sales. This revenue is from the harvest of approximately 3000 square feet of grow space. This is our first harvest. The same square footage should generate approximately $200,000.00 on an on-going basis as we become more efficient. This number also parallels our projection of $200.00 per square foot on an annual basis.
7. For phase one of our expansion, we are committed to a minimum of 66K square feet of grow space and a maximum of 230K square feet. Negotiations are still in the works for the additional square footage, but things are looking favorable at this point.
8. Long term, as we build out our brand and gain customer trust and loyalty, our business is scalable to whatever size is necessary to meet demand.
Mr. Magallanes went on to say, "We had requests that we share more information about the company and our operations. We hope that the information provided and the MAPAL Agro link help shareholders to better understand the business, the revenue expectations and why we feel our company is a great investment. Another reason why our company is a fantastic opportunity for shareholders is the fact that we have decided to implement a monthly dividend that will be paid out to shareholders of record beginning August 2017. The details will follow, but here's something else we'd like to share with you. Valerie and I do not take a salary from the company. The monthly dividend will act as our compensation. If the company does well, we do well and so will our shareholders. Putting the two of us on a level playing field with shareholders is our way of showing you how much we appreciate your support. If we benefit, you benefit and vice versa."
CFO Valerie Baugher stated, "We want you to know as much as possible about our company and how we operate, so we'll continue from time to time to provide educational type information about the business in our press releases. In addition, our website link is listed below and we plan to update the site with more detailed information soon. I'll be the one providing more information and specific details on the monthly dividend payment and will do so later this month. In addition to that, we still have one or two more exciting pieces of news for you that we'll cover in the coming weeks. As always, we thank you for your support."
Sunset Island Group Targeting 230K Square Feet of Cannabis Grow Space
SAN CLEMENTE, Calif., Aug. 3, 2017 /PRNewswire/ -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced today that they have looked at additional expansion space that's available and that they are now considering 230,000 square feet of cannabis grow space.
CEO T.J. Magallanes stated, "We have a very solid plan for accessing additional capital for expansion that will more than meet our previously announced expansion plans. With that being said, as a result of recent discussions with our current lease holder, it has come to our attention that up to 230K square feet of additional grow space could become available soon at very favorable terms. We are strongly considering this option based on the terms presented. Based on the results of our first harvest and the overall performance of our team, we are of the opinion that we should be able to scale up production at a much quicker pace than originally expected."
CFO Valerie Baugher stated, "Even if we do not immediately put all of that square footage into production, another consideration is the permitting and licensing requirements that will be put into effect across the state of California at the beginning of next year. Every indication points to less growers across the state as the legal requirements become more stringent. Having a surplus of square footage could become an advantage to us if in fact the demand for product becomes more than available supply."
Mr. Magallanes went on to say, "We are working out the details on two more pieces of very exciting news and will share with our investors in the coming weeks. If both of these come to fruition, there's no doubt in our minds that investors will be extremely pleased with their investment in Sunset Island Group."
SAN CLEMENTE, Calif., Aug. 1, 2017 /PRNewswire/ -- SUNSET ISLAND GROUP, INC. (OTCQB: SIGO) announced today that the company is in the process of securing multiple cultivation agreements in order to facilitate expansion plans.