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I like that SIGO is taking one step at a time. For us, it's like staring at clock. We wish developments happen so much faster than they do. Shareholders want companies to be quick and aggressive; make the money fast, make that stock price go up quickly. I'm glad that SIGO is going to take their time on singular focus, which is cultivation - the most important thing they need to be doing.
Team members like Gambino have big responsibilities with keeping enough clones on standby ready to fill a bay every two weeks. That's over a 1000 clones, or 500 clones a week. Nearly everyday, Gambino and team need to source over 100 new clones to keep the 5-bay system rolling. I can see why they need to focus, get their processes down. That's everyday, folks. 100 new clones have to be sourced. That's a major logistical problem.
HOW CAN ANYONE EXPECT THEY HAVE A CLONE REVENUE STREAM WHEN THEY NEED TO FIRST ENSURE THEY HAVE ENOUGH CLONES TO KEEP THEIR OWN OPERATIONS GOING.
SIGO needs to take their time and dial-in their processes now, get them like clockwork. They need to cross train their team, too. What if Gambino wants a vacation? Someone else needs to be able to step in and know what needs to be done. That takes time.
Once they figure it all out, they write up an SOP (Standard Operating Procedures) and include that in their new hire handbook as they move into Phase 2 and expand.
This has got to be the easiest industry to understand, especially with an Instagram page bringing the play-by-play. Some, however, do their best to overthink it with exotic hypothetical situations and questions.
Board's mood turning positive as we get on the up escalator. Funny how that happens when we hit a support level.
Bought more SIGO, too!
Failure not an option.
Growers hold the most valuable licenses. Without them producing upstream, downstream manufacturers, distributors and dispensaries have nothing to make, move, or sell.
I don't see any facts unless you can provide sources for your claims. Otherwise, it is difficult to believe what I'm reading. Sorry.
All the information guiding my SIGO investment decisions is coming from their Instagram account and SEC filings.
Clone revenue stream is still a work in progress. Nothing has been left behind. Checkout instagram: http://www.instagram.com/vbfbrands/
These facts are forwarded, but nothing happens, why is that?
We're good, thanks. Have you seen the Moon Rocks SIGO plans to make?
SIGO already told us the MJ market in CA did not place a premium on organic certification. SIGO thought they could sell their weed for higher rates, but that did not materialize, so they chose to move away from Envirocann's $20-30K expense. Also, with the new testing regulations, higher quality is getting standardized/normalized throughout the market, anyways.
Pesticides used by SIGO are still organic, and they now use a Heavy16 feed schedule. It's good to read up on the Heavy16 at http://www.heavy16.com/knowledge/
Bought more today; 28 buy orders, 0 sells
SIGO building a real team with logical connections. Do you think TJ will leverage his 828 followers and 1393 followed connections on Instagram much? Of course he will.
Only misinformed selling. When we read these boards constantly, everyday, day in, day out, time moves much slower. MJ doesn't grow as fast as we think and expect.
I'm loading more too. Can't sell or I'll have to pay long-term capital gains tax. Need to wait a year to cut my tax liability almost in half. Even at a year, I do not plan to sell. As long as I keep seeing advancements on Instagram, and eventually reflected in financial reports, I'm good. Patience will get rewarded.
So TJ and Valerie are not to receive any compensation for their time and effort? The fact they take no salaries is not the norm or really expected.
Thats a good suggestion to make via info@sunsetislandgroup.com
Of course, the shareholder tour is an excellent venue for such a thing. Maybe you can submit questions to someone going and have them answered for you.
For me, Instagram gives me assurance that things are moving forward. Not just the pics, but the ever-evolving conversations happenning with each pic. I feel like I have a very solid understanding of the goals. Hope you can get that same feeling too.
Average down if you believe in the operational direction. Just my 2 cents.
I dont think SIGO knows what guidance to give yet. They dont have an extraction deal inked, that I know of, so cannot give revenue numbers on last harvest or next one on 3/12. Bay 3 will be the first harvest with new Heavy 16 feed schedule, so yield amounts are unknown at this point. This situation is all temporary. Funds from St. George are already being put to use, and we have MJ growing in 4 bays right now. Fifth bay gets planted next Friday. Thats what we know for facts. Good buying opportunity.
Nope, only show the negative 1%
SIGO obviously, as professional MJ growers, would not be satisfied with only trim as an outcome. Good thing that is not the case, AND also good that they take this seriously enough to make the adjustments necessary to deliver the outcomes we need.
Shortening the light cycle to 12 hours on, 12 hours off triggers the flowering of the female clones. Got to keep males far away from the flowering females or risk seeds developing in the bud.
The Clone Army is an all-female fighting force.
Yep, that's exactly how I understood it. St. George money is for expanding the cultivation. REI deal allows SIGO to ramp-up its manufacturing, simultaneously with cultivation, with no out-of-pocket expenses. TJ Playbook.
Oh, dreams squashed, but thanks for clarifying.
I always thought that the REI deal was completely separate from St. George deal, but maybe you are right in that before St. George, SIGO needed to leverage a partner's finances more, but now with them having their own money, they can go it alone.
I still think the advantages of bringing in a partner like REI makes sense. Experienced extractors, established distribution, no out-of-pocket expenses for SIGO so they can focus their capital on expanding the cultivation. Plus, SIGO can start extracting themselves. Makes a lot sense.
I wonder how much money goes into maintaining those ACs. I'm sure some break down in the hot Las Vegas heat. The Sun is expected to last billions of years, so we're good.
More REI dreaming...
I wonder how an entity that is not registered anywhere you looked can have established distribution in Southern California
REI's Store Locator Map in California
https://www.rei.com/map/store#CA
REI has 28 stores in CA, next largest store presence is in TX with 13, then WA with 11.
IF REI was going to take advantage of being a first-mover, they would likely do it in CA. CA is considering a MJ bank. CA Attorney General is involved in the initial discovery of such a bank.
That would be incredible if true, but what makes me think it is probably not is the fact that SIGO mentioned REI in an 8K. If the real REI was going to make a move, they likely would not have allowed SIGO to mention their name until they announced first.
Still, its fun to dream.
Enjoy the journey.
I know we all have different expectations and opinions of SIGO, but I hope everyone, including the SIGO team on the ground, can enjoy the journey along the way as we witness the rise of a great industry and company. We are lucky to have a front row seat to observe and learn from.
Soak up this moment and the moments to come. Great business lessons to learn along the way, which will make us smarter investors and business people down the road.
If you are here, you're on the journey with us. Enjoy it!
The process of going from harvest, to cure, to signing an extract deal, to initial setup of equipment/manufacturing processes, to doing test runs, to scaling up to full production, to giving samples to customers, to signing initial purchase order agreements takes a lot longer THE FIRST GO AROUND, then follow-on transactions. That's why I give it 45-60 days. Future iterations could happen much more quickly. Make sense?
Also, first impressions are everything, right? We want to make sure that our vape product is high quality. That will probably take a few test rounds to getting that right. Even if the first test was good, why would we not try to improve it. Our brand depends on a high quality product out of the gate with our customers. That will take a little more time initially. Once we have it dialed in, its rinse/repeat.
You are comparing apples to oranges.
I consistently get that saying wrong; no sorry needed.
That is absolutely correct. We are in the midst of a major transition period for SIGO.
Past looks like a start-up trying to get off the ground in the face of changing regulations; Future looks amazing.
Tough to see forest through trees for some right now. Good thing we have daily Instagram pics and videos to keep us in the know.
Instagram is the leading indicator. Name me another ticker where you have such a transparent view of operations to the point where you can predict the timing of revenues.
They had a harvest in December. That went to medical dispensaries under the old rules. Probably another $100 - $125K. Helps to keep the lights on.
They had a harvest on Feb 9. That is going towards extracting. To reduce risk, they are trying to bring in an experienced extractor. I don't think we'll hear about those revenues for another 45-60 days. Only have an LOI at this point. In the beginning, SIGO will likely only partner with one other company. If they partnered with two companies, that makes it tough to develop solid relations when you have one company competing against the other. So they are probably going to take the time to get the best deal with a single company.
They harvest again on 3/12. Same story as above, won't hear about revenues from that until about a 45-60 days after.
THEN, on 4/6, the perpetual every 2-week harvests start happening, so we'll be bringing in revenue on a regular clip. These harvests will be very interesting as we are using the new retrofit grow methods: feed schedule using Heavy 16 nutrients, LED lights, etc.
This is all documented on Instagram.
The revenue numbers you hope to see probably won't be there to push this to higher highs until summer. If you are in it for the long term - 2-4 years - everything is moving along fine. If one is needing a 10 bagger by April, I'm afraid it will not work out they way they hope. That's my honest assessment. We as a shareholder group would rather have strong hands who understand the timetable.
Just want everyone to have a realistic expectation of SIGO.
10K will likely be a sell the news event, IMHO. I'm saving up my dry powder to take advantage of likely cheaper prices. Its just the way it is at this specific moment in time. Won't be like this forever. Three months from now, it will hopefully be a different story.
Im holding because selling will incur a big tax liability for me, I want long term capital gains rate, and also because when it runs I doubt I'll time it right and lose the healthy position I have now.
Patience is needed with SIGO.
If you are looking for quick money, you will likely get frustrated.
It's still in a startup phase. Largest fully legal MJ industry in world still just getting off the ground. From my perspective, everything is right on schedule. I am not expecting to hear of significant revenue numbers until late March/early April.
The extraction process is getting off the ground. Need to turn it into oil, placed in products, distributed, and sold. That will not happen overnight.
Of course revenue is needed to move the price, that's the case for all stocks. What makes it nice for us is that you can see the revenues growing on Instagram. Everything is fine, IMO.
Financial guidance is growing in the bays.
NO DILUTION IS POSSIBLE TO 70K SQ FT
If SIGO stays frugile, they could easily pay back in cash.
There are 10 harvests between the last one and Aug 1.
Assume super low, conservative revenue per harvest of $100k. That's $1M. They would need to pay back $850k loan with $935k.
Have the money now to start/complete Phase 1.
Assume Phase 1 complete by end of May giving time to retrofit greenhouse. (Could be sooner. I bet they show off progress of Phase 1 at tour)
Completion of Phase 1 triggers the second batch of funding from St George, lets say 1M more.
Second 1M batch of funds to be payed back 6 months from June, or by end of November. In that time, another 10-12 harvests happen. Each harvest growing in yield and revenue. I did not include the harvests in June and July needed to pay back Phase 1 by Aug.
Phase 2 greenhouse complete by Aug.
All the above does not factor in Bay 6, or the harvests from Phase 2 starting in Oct. Revenues from Bay 6 could pay the operating bills, wages, lease, etc alone.
IT IS POSSIBLE FOR SIGO TO EXPAND TO ABOUT 70k Sq FEET WITH NO DILUTION AT ALL.
STEADY SAILING TO SUNSET ISLAND
Steady oil supply is PR-worthy news for cannabis manufacturers.
Look at the iHub NewsWire PR links below this post, first link.
CANNABIS CONSORTIUM HAS SECURED A STEADY SUPPLY OF MEDICAL GRADE OIL FOR ITS PRODUCTS
With only 1% of CA growers licensed, a steady stream of oil is a strategic advantage for licensed manufacturers wishing to compete in largest MJ market in the world.
The cultivation license is THE ONE to have of all the licenses available. Without biomass from cultivation, the other licenses are worthless.
SIGO will likely partner with one extraction company like REI, learn everything there is to know about extracting, then do it for themselves and get all the revenue.
This is from the TJ playbook; getting knowledge for free, then transforming it into kinetic action.
Learning new SIGO things on Instagram.
Http://www.instagram.com/vbfbrands
You have to go back and revisit pictures you have already seen to keep up with the evolving conversations, like this one:
https://www.instagram.com/p/BfQ4kWrHWVi/?taken-by=vbfbrands
rogue_506 When are you guys going to announce yield from your last harvest?
vbfbrands It went straight to extract. The first yield that we would be announcing will be Bay 3 as we are expecting to extract Bay 2 as well. Both Bay 1 & 2 were grown organically under the previous method and were planted prior to 1/1. We don’t want to confuse dispensaries with the different product since Bay 3 should be ready to harvest on April.
vbfbrands Should have also added that since going straight to extract it is trimmed so weight is hard to say because it has not been trimmed as plant is just stripped after dry, then frozen and then processed.
vbfbrands Because there is a huge difference between organic and non-organic crops. They are two entirely different products. We started with Bay 3 providing a full feed schedule that wasn’t being done previously. Pest control is still organic but the major change is feeding.
vbfbrands The company is now using Heavy 16 product line and varying the feed schedules per bay based on their grow cycle. The previous growers were essentially using Bat Guano and not varying the feed schedule based on growth cycle. Hopefully that answers you question more thoroughly
umiak1 Thank you!! So I hear that medical grade requires the "full feed schedule? Is that true?
st0ne_free @jrwilder read above for info on harvest yields
vbfbrands @umiak1 not sure what you mean. But full feed schedule means rotating nutrients and supplements based on the growth cycle of the plant and what week it is in within that cycle. It doesn’t make a difference if medical or adult use.
Link to Heavy 16 Feed Product: http://www.heavy16.com
They would extract any part of the plant that has trichome glands on it. Thats where the cannaboids live. For extraction, we want a bushy strain that covers itself with dense trichomes. More leaf surface area means more trichome glands, which means more high-potent oil and that equates to more money.
Chemist72 has done some beginning analysis of cost per pound and came up with some crazy revenue numbers of 5 to 10 times the value of flower buds. We just need to confirm, but I believe they are in the ballpark.
Seldomhome, I do not have PM ability, but I will not be at this tour, but hope to go to one during the summer after Phase 1, or maybe during Phase 2.
My three biggest questions for tour:
1. How many grams of plant material goes into one vape cartridge?
2. What is the profit margin per vape cartridge?
3. Will they try to grow beyond 72 sq ft before entertaining any aquisition offers?