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Excellent insight, Rcranga. What other California cannabis grower has gone through this? We expect too much sometimes.
SIGO stated 10K is in process. I'm certain they clearly know everyone wants to see it. Drool on it? I'm not so certain about that. Patience is needed to wait out the process to happen. Good luck.
These doomsday predictions never come true. If they have been wrong all times before, how can anyone believe they will happen now. Sorry, there is no credibility behind these statements. Moon Rocks!!
10k, 10q reporting - got to be consisyent here or the market will not take them seriously
Extraction process and partnersip details
Expansion details
Are my top three interests.
I did my DD; no myopic vision here. Moon rocks!!
Meanwhile, lots of weed growing off the coast of CA under the SIGO flag. They can't be smurfed.
Bay 2 planted in 18 days
Bay 2 harvested in 7 days
Bay 1 planted in 4 days.
Yep, 32 days until perpetual 2-week harvests start. This ramp up period will be the last time SIGO is this idle from a harvesting standpoint. We will remember the days when we waited months between harvests. By end of year, there will be 2-3 harvests every week!
Doesn't take much vision to see where this is going.
Real investors take responsibility for their decisions, like I have done with SIGO!
I am responsible for my 80% return so far.
Would love to know what you are talking about.
I agree. The post from The Rooster is a duplicate. Should replace with Instagram link.
Industrialization and innovation brings higher-order cannabis products that are not widely made at mass-scale by black market or end consumer. Products like Moon Rocks, extracts in fancy vape pens, cannabis lip balm, etc. will enable profit margins to remain up or increase.
If flower prices drop, SIGO becomes solely an extract company, for example.
Penknee, you have the wrong link.
You provided a permit fee; we are talking product taxes.
Go here:
http://www.co.monterey.ca.us/government/departments-i-z/treasurer-tax-collector/commercial-cannabis-business-tax
Taxes are $2 per square foot, not $15 as surf suggests.
If that is wrong, what else is wrong???
So many inaccuracies being spread on this board. That's too bad.
Also, your price per lbs of sellable flower assumption is too low, IMO. Average is in the $1300 ranging between $500 to $2500.
https://mjbizdaily.com/will-californias-regulated-market-see-drop-500-pound-wholesale-cannabis/
What is the value of the left over biomass if there is no extraction process? The left over biomass has no opportunity cost; but the extraction gives it a path to be monetized. Do you get that? lol
You are ignoring the fact that the sellable flower revenue pays the incentive. Complete, done. Again, left over biomass has no opportunity cost - its not sellable until further industrialized. Extraction makes it valuable.
You also ignored the 20% of 3rd party biomass revenue stream. That's where the bigger money comes in. No incentive fees there, no greenhouse restrictions. It's open-ended. Do you get that? lol
The incentive pay is not based on extract lbs., just sellable flower - the buds. Not extract.
Sellable flower is a different product from Extract. Two different things. Do you get it now?
You said: If they are spending $400-$500K as implied(which they are not)
Can you please provide support for your statement above? How do you know REI is not buying the $400-$500k worth of equipment? That is in direct contradiction to what was stated in the 8K, so you'll need to provide proof of that before that statement can be made credible.
Chemist72, If you can point the way to how we get the addresses and phone numbers, that would be great. I know you are skilled at searching state registries. Can you provide a link? It won't take much longer to find and get the addresses and numbers. I would prefer we send SIGO some actionable data that they can get to work on immediately. Getting the phone numbers and contact names would help make it actionable. I have no problem sending or others sending. Also, no need for credit. This is a team effort all around.
You know we are talking about revenues, not net income.
Sorry, that is incorrect. The incentive table states "Harvested pounds per bay of sellable flower"
The inventive pay is based on the 96-160 lbs of sellable flower, which can get $1500 - $2000 per lbs minus the $40 - $120 incentive bonus.
There is no net loss.
In the same release, it states that SIGO would receive all the money and give REI their cut. SIGO is moving the money around because they are licensed to do so. REI is putting up the money, but SIGO is doing the act of buying. That is what I meant.
6. The Company shall receive all the funds and pay REI Extracts its portion semi-monthly.
Data analysis on Monterey cultivators:
I combed through the CA licensee databases to find out who in Monterey is a grower, but does not have a manufacturing or distributor license. The idea was that these growers would produce biomass, but would not be able to move it or extract it. SO, SIGO could buy it and transport it to REI for extraction and receive 20% of revenues. The below list would generate thousands of pounds of biomass per month.
This is what I found - all are in Monterey county. In order of size I list the following growers:
FLRish Farms Cultivation 2, LLC
- 17 Small Mixed-Light Tier 2 licenses
- 2 Specialty Mixed-Light Tier 2 licenses
- 2 Nursery
- 2 Processor
- That's 23 grow licenses, about 10 times bigger than SIGO, but no distributor or manufacturing licenses that I can find. (I compared business names.)
Old Stage Partners LLC
- 12 Small Mixed-Light Tier 2 licenses
- 2 Medium Mixed-Light Tier 1 licenses
- 2 Special Cottage Mixed-Light Tier 1 licenses
Wave Rider Nursery, LLC
- 12 Small Mixed-Light Tier 1 licenses
- 1 Nursey
- They have distributor licenses but no manufacturing, so they could bring their biomass to SIGO for extraction
22785 Fuji, LLC
- 9 Small Mixed-Light Tier 2 licenses
Zabala Farms of Salinas, LLC
- 7 Small Mixed-Light Tier 1 licenses
- 1 Nursery license
Marie's Deliverables
- 4 Small Mixed-Light Tier 2 licenses
- 1 Medium Mixed-Light Tier 2 licenses
- 2 Nursery
Monterey Tilth LLC
- 4 Small Mixed-Light Tier 2 licenses
- 1 Medium Mixed-Light Tier 2 licenses
- 1 Nursery license
- 1 Processor license
ECCA Investment Partners, LLC
- 4 Small Mixed-Light Tier 2 licenses
- They have distributor licenses but no manufacturing, so they could bring their biomass to SIGO for extraction
Sur Farms, LLC
- 3 Small Mixed-Light Tier 1 licenses
- 1 Small Mixed-Light Tier 2 licenses
Pacific Reserve Nursery, LLC
- 2 Small Mixed-Light Tier 1 licenses
- 2 Special Cottage Mixed-Light Tier 1 licenses
- 2 Nursery licenses
These are the biggest growers in Monterey. There are about 20 smaller ones that do not have a manufacturing or distributor license.
Next step would be for someone to look up these companies and find an address or telephone number, and then send these leads to SIGO. Where can an address or telephone number be found? Business register? Someone have a link?
They told us in the 8K that the conversion of biomass to extract is 10-18% per lbs of biomass can be converted to extract. So, I think that's the ratio.
Also, it is my understanding that to get the $5000 per lbs of extract, SIGO needs to produce it themselves. If they use REI, they will only make 20-25% of that, or $1000 - $1250. But I wonder if that $5000 is after the 25% cut. If that's the case, SIGO should solely be an extraction company and never sell flower.
The above begs the question, how did they produce the first batch of extract to get that $5000 if they did not have equipment? Or, did they make it using some other method. There are many ways to make extract. The industry standard is moving towards the cleaner supercritical CO2 extraction. I assume that's the type of equipment being sent to SIGO. I saw some machines that cost about $100K. Does this mean they are getting 3-4 or these machines?
MOON ROCKS ARE THE ANSWER TO EVERYTHING
If I was SIGO, I would call up every licensee in CA and introduce themselves. Just say hi, we exist, would like to look for ways we can support each other. Its an exclusive club right now with so few licensed growers.
Feels good knowing we have more experts in the building, referring to REI. We dont have to worry about SIGO starting out as amateur extractors. It also appears that SIGO will be taking the lead from a brand / relationship standpoint. I say this because SIGO is distributing the extract and recieving the payments. SIGO pays REI. In the process, SIGOs brands get built. Would be tough to build our brand if our extract product lagged behind expected standards. I believe SIGO management clearly know what high quality product looks like - they are consumers themselves. Relationship building is extremely important in this stage of the industry - so few licensees. This is where I see Pizza and Music really shining.
These additional experts also bring their own opinions of what high quality means. You know the extractors will peek into the grow bays and give the Master Grower and SIGO feedback on the grows. No shortage of opinions there.
We got a great team forming. We, us shareholders here on the idealogical front lines, are a part of the team, too.
REI deal benefits SIGO in the following ways:
* Practically guarantees that SIGO will be able to monetize all the material from every harvest. If the flower yield is high quality, they will sell the flowers for, say $1500 - $2000 per pound. All the other source material (lower quality buds, trim, stems and leaves) can be extracted for $1250 per pound. All parts of the plant, minus the major branches, will be turned into revenue.
* Allows SIGO to monetize their distributor licenses. REI pays for the 3rd party source material from licensed farms. SIGO can go get the material and makes 20% of revenues. This revenue stream has no greenhouse space constraints. We could develop 10, 20, who knows how many relationships with 3rd party farms. If SIGO can distribute 100 - 200 lbs. of source material to REI, they'll produce an additional 100(18%) - 200(18%), or 18 lbs - 36 lbs of extract and make 20% of $5K per pound, or $18K - $36K per month. That's just the beginning stages. Who knows how much poundage can be distributed to REI. Potentially thousands of pounds, I assume, is possible. For REI to make $1 million revenue in a month, they would need 250 lbs. of extract (times 80% of $5k/lbs). To get 250 lbs of extract, REI needs x(.18) = 250, or 1,388 lbs of source material per month, and SIGO makes $250K per month.
* Allows SIGO to become experts at extraction risk free. REI buys the equipment, pays the costs. SIGO learns by working with experienced extractors. Once cultivation expansion is solidly in Phase 3, SIGO can buy its own extraction equipment having learned what works and how to do it.
* SIGO expands its cultivator, distributor, and dispensary relationships to support future product development.
Very nice deal. And none of the St. George funds are used to do any of the above
GET OUT YOUR CALCULATORS; COUNT MONEY
At least they have a good PR writer that talks a good game about management. I did chuckle when they talked up their new cannabis lawyer who will guide them through all the licensing. Spent a good PR on that, while SIGO just executed with their lawyer and got it done without the fluff PR. At this stage of the game, Im favoring a streamlined management team.
Yep understand that, but at the time the PR was written up, the competitor did not have a mature plant operation. In fact, they touted they we not breaking any local, state, or federal laws. If you are cultivating MJ in California using a license, you are breaking federal law.
A clone, with two big fan leaves and main sprout, cannot be cloned until it grows. My question was how do you have just a clone operation without mother plants.
SIGOs operations seem more doable and realistic compared to other companies. Take LVV* for example, a competitor to SIGO. They have a 3000 sq ft greenhouse, or 1.5 bays, and plan to produce 75000 clones per month. Where are they going to get those clones? You can't clone from a clone, its not mature enough. SIGO gets theirs when they prune a mature plant at end of veg stage, or early flower, so they have the mature plants to source their clones from.
Regarding SIGOs new strains, my calculations show that it takes 3.5 grow cycles (not full cycles) to build up the clone supply to initially fill 2 bays, so it will be awhile (Jul - Aug) before we see the Gorilla or Moose Tracks. At least they have already started the process.
My shareholder tour questions:
1. Can we get the quarterly report out on-time, please?
2. Can we get all subsequent financial reports out on-time, please?
3. How much plant material (grams) is needed to make one vape cartridge?
4. Is SIGO trying to develop an end-consumer brand, or a B2B brand, or both?
5. What are SIGO's brand pillars?
6. What specific problem keeps you up at night?
Yes, I can see that on the chart, thanks.
Patience is a virtue. I recommend diversifying your investments. Plenty of information being put out on Instagram to give an investor confidence that everything is moving forward fine. Stock price won't move significantly until revenues are realized in financial reports. We clearly know what the timetable looks like for harvests and plantings. They have hit all their dates so far - thanks management.
Revenues are important; revenues in financial reports are even more important - from stock investor standpoint. Good thing we can see some incredible looking revenues growing at http://www.instagram.com/vbfbrands/
We're fine. I'm saving up my pennies to buy more. Bay 3 looking good, should be a great harvest. In 5 weeks, SIGO harvests every two weeks. Nothing has changed, just coming into fruition. Weak hands sell, strong hands buy. Sun comes up; sun goes down.
They can do both. Hitting dates on a published timeline builds credibility, trust and confidence, something they obviously needed. I think the point is why would anyone short at these levels given the technicals.
I will follow the white rabbit. SIGO!!
https://www.instagram.com/p/BfwSATFH0x8/?taken-by=vbfbrands
Must be a sign; trying to crack the code. lol