Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Not seeing much new in the Q, or did I miss something?
Deal with REI and updates
The Company has agreed to terms with REI Extracts regarding an extraction and distribution joint venture. Equipment has been ordered and is being shipped to the Company’s location in Salinas, California. The operations of the joint venture will be conducted under the Company’s licenses.
The terms of the joint venture are:
1.REI Extracts shall manage and be responsible for all costs associated to the extraction operations under the joint venture.
2.REI Extracts shall pay for the acquisition of the equipment necessary to produce extracts for the joint venture. The Company has estimated the equipment costs to be approximately $400,000 - $500,000.
3.REI Extracts shall pay for all source material from licensed cultivation farms.
4.Company shall receive 20% of the net revenue from activities related to materials sourced from 3rd party licensed cultivation farms.
5.Company shall receive 25% of the net revenue from activities related to materials sourced from the Company’s licensed cultivation activities. The Company will provide its trim and other bio-waste for extraction
6.The Company shall receive all the funds and pay REI Extracts its portion semi-monthly.
7.The Company will be able to produce its own extracts outside of the joint venture.
(2) Additionally, the Company has retained REI Extracts to provide consulting services related to cultivation and to provide a master grower. The new master grower has been working with the Company since January 2018. The grower will be paid based on the yield of sellable flower per bay. The incentive pay shall be paid as follows:
Harvested pounds per bay of sellable flower
Incentive Bonus
0-40
$0
40-60
$40 per pound in excess of 40 pounds
60-80
$70 per pound in excess of 40 pounds
80-100
$100 per pound in excess of 40 pounds
100+
$120 per pound in excess of 40 pounds
(3)Company’s Goals : The company’s goal (once retro fit is completed) is to produce 0.08-0.10 pounds per square foot of canopy space per harvest. The Company expects the canopy space to between 1,200 and 1,600 square feet per bay (each bay is a total of approximately 2,000 square feet). Which would be an estimated 96-160 pounds per bay per harvest.
The Company expects that its trim weight will be approximately 20-25% of the sellable flower weight. The expected yield for extraction from the trim is 10-18% of the processed weight. For example, if ten pounds of trim is processed the company would expect it would produce between 1 pound and 1.8 pounds. The Company recently sold extract for $5,000 per pound.
The Company has planted Bays 3, 4, and 5 under its new growing technique of using coco coir and increasing its plant count to 1 plant per square foot. As these bays are harvested and new bays are planted and harvested the Company would be able to provide additional projections and fine tune its operations.
The Company recently harvested Bay 1 which will used for extraction purposes on the joint venture above. Bay 2 is expected to be harvested within the next 2 weeks and the Company will decide at the time of harvest if the bay will be used solely for extraction purposes or for sellable flower and extraction purposes. Bay 2 was the last bay planted in dirt and is the last bay planted using the previous growing technique.
Trippin 'em now!
If a 22k buy jumps it that quick, can you imagine some REAL buying pressure?!?! We are coiled tight here! PSPW
May not be that far fetched of a request - they want to prove the doubters wrong. You can talk to Wade yourself if you want. I did. He didn't decline to answer anything I asked him, and even admitted some mistakes. What I took away from our conversation is that when Wade runs companies by himself, he tends to be reactionary rather than stick to a long term vision & strategy, and things go down the crapper. However, what gives me confidence is that SIGO has a solid long term game plan, and a great TEAM in place to execute the vision of being the top public player in CA cannabis, ultimately becoming an acquisition target. This is one company I would not bet against. All in my own opinion, of course.
Item 8.01. Other Information
On February 26, 2018, the Company’s Board of Directors approved a cash dividend. The record date for the dividend is March 31, 2018 at a rate of $.001 per share.
Divi announced .001
LOL! Somehow I knew that was the "chart" you were pulling out before I even clicked the link.
We're 10 on the breakout boards! PSPW
With Scottrade transitioning accounts to TD Ameritrade this weekend, hopefully I can set a sell more than 4x the ask like Scottrade was limited to.
Things heating up soon, eh? :)
It was one of the filler photos on 3powershala.com...I suppose it could be legit, but I think just a dummy photo as they were building out the site.
Or maybe tomorrow, who knows haha
Unless our filing status is different (which it might be), the Q is due 5 calendar days after the prescribed due date, which would put it due today the 20th I believe.
Can you imagine what a well-timed PR & 8K this aft for positive financing news would do? This thing is wound tight. We'd be at $3 immediately and probably close near $4.
You know this, but NO ONE in CA has their permanent license yet...the entire state must all be scams, right? LOL!
https://aca6.accela.com/CALCANNABIS/Cap/CapHome.aspx?module=Licenses
License type: Adult-Use Cannabis Cultivation
Notice:
Your search returned no results. Please modify your search criteria and try again.
8k out with manufacturing news
a) On February 7, 2018, the company executed a term sheet for $4,235,000 in financing. The closing date of the financing has not been established as we are waiting for definitive agreements for review. The initial tranche will be for $850,000 which will be used to repay the financing received from Auctus (which was funded on February 2, 2018) and to complete the build out of the retro fit for the current greenhouse. The remaining financing will be used to complete the additional expansion plans of the company; however, the Company will complete the retro fit on the current operations first.
The goal of the retro fit for Phase 1 is to increase the growable space in the current greenhouse to approximately 22,000 (with a vertical grow) with approximately 85% being canopy space (or approximately 19,000 square feet). The Company’s goal is to yield 0.08-0.10 pounds per growable space per harvest. The Company’s goal is to have 5 harvests per bay per year.
(b) On February 7, 2018, the Company has received a letter of understanding (intent) with REI Extracts to build out its manufacturing and distribution divisions. Under the intended terms, REI will pay for the build out of the manufacturing facility including all equipment and overhead associated to its ongoing operations. The Company will contribute its licensing and biomass from the cultivation operations. The Company will receive all proceeds from the sales under the joint venture and will pay REI 75-80% for managing and financing the operations. Essentially the company will receive 20-25% without any out of pocket expenses related to the manufacturing division. Thereby, allowing the Company to use its capital for its cultivation operations and allowing experienced extractors finance, run and manage the manufacturing division. Additionally, REI will assist the Company to expand into the Los Angeles and Southern California market through REI’s established distribution network. Nothing would limit the company from also manufacturing products under its own brand of “VBF Brands.”
His comments may not really matter here, but following his postings has made me a small fortune in another company while I wait for this to hit.
The 10-Q should come by Feb 23rd, right? Assuming they keep the NT pattern?
Yes. That's what I like. They may 8k everything under the sun, but they continue to clear up any confusion. They even added
"To clear up some confusion, VBF Brands, Inc. is not the same as Von Baron Farms, Inc. which was a separate California corporation that has been dissolved."
$300k rev for the year but generated in one quarter's worth of time.
Have you asked the company for clarification? Rather than touting private email responses that I've chosen to share here, maybe you could put in your own work and time and ask for clarification instead of muddying the waters waiting for others to come up with answers that support your views.
Hey, at least I've shared info unbiased. I'm long and strong, and I knew that email response would not support my own view but chose to share it for proper expectations on cultivation revenue in the upcoming 10k.
Lol so let's 8k an announcement saying we stopped planting to make sure we receive our licenses?
No. Here's why -
I asked them the following:
What square footage of space have y'all been utilizing for the medicinal grows that have been harvested regularly since after the Aug harvest? I'm doing a rough revenue estimation and wanted to be clear on the space. I know the first adult use bay has just been transplanted but I wasn't sure if that space had been previously filled for the medicinal grows that could still be sold during last year, or if there have been bays not used for part of that time. Thanks.
Here is their response, which lines up with the 8k just released:
No. With all the uncertainty around the licenses we decided to ceased temporarily from planting until the licenses were obtained. 2 bays are currently planted. We ideally have the bays transplanted about 2 weeks apart and within 7 days of harvest. But with waiting for the licenses we only have the 3 bays planted. The next bay should be planted approx 2/9. In order to transplant within 7 days of harvest, we have to have plants prepared and ready to go. It will take a a couple of planting to get back on track.
Sorry, I thought I could PM you a reply but I can't. If you would, PM me your email please. Thanks.
Emit, can you send me a PM?
Lets be honest - theyre not making millions from manufacturing YET, but looks like a highly likely scenario as the year continues.
Very clear and forthright. Who knows how to accurately estimate poundage from either a certain number of plants or square footage? I'm thinking a conservative estimate would have 1-2 harvests at the single tier production and 2-3 harvests with the double tier.
There you go. 8k announcing distro license:
ITEM 8.01. OTHER INFORMATION.
On January 29, 2018, the Company received its Distributor licenses from the State of California for Adult Use and Medicinal Use.
Based on the way the state set it up, everyone has to apply for the temp licenses first, and once approved, can apply for the annual licenses. The annual licenses have larger application fees however. Not really anything different between the two, accept the temp is good for 4 months from approval and annual is a year obviously.
I believe that among the dozens of businesses with approved CA licenses, SIGO is the only public one, and most assuredly the only public one with 6 licenses (3 types).
Now let's figure out some conservative revenue numbers...
It keeps getting better and better here! GO SIGO!!!
$SIGO 4.8 mil float, 5.3 mil OS, A/S just reduced down to 20 mil, insider shares locked for 3 years, all licenses received, it moves on air, BIG MOVES COMING
Way to stay on top of it, map!
Haha I was just about to look for it but you beat me to it! Yeehaw!
NT out
$3.50 cometh, and she cometh soon!
From Dec 12th, meeting of the 3 major shareholders and addition of attorneys who can sign & process documents in Albania on Shala's behalf.
www.qkr.gov.al/search/search-in-trade-register/search-for-subject. Search "Shala Energy." Anyone who can find the next page showing the "agenda" could be a hero, but I'm sure it's been left off on purpose...
They've said from the beginning that the "end in mind" is to be acquired, which supports ownership rather than converting to sell on the open market.
$3 printed!!
How about right now? Hahaha I can't look away this thing is so beautiful!