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Yes. The company harvests every 10 days in what they call "perpetual harvest" and repeatedly, Mike has stated that they are sold out "weeks in advance".
When I toured the facility a year ago, I reported back to this board that the ONLY issue I saw which was of concern, was capacity. Facility A simply has no room for expansion. Well actually, subsequent to my tour, the company moved packaging, shipping and receiving off-site to another facility which freed-up space for more grow space.
The point is however, that in spite of promises made to Cookies, they can only grow and produce so much product. Period. If all their current capacity is already promised (via contract) to other dispensaries, then there is no way the Cookies deal can come to fruition until Facility B is up and running.
It's a hell of a problem to have. Producing a product, a premium product which demands top-dollar, but to have limited supply and have customers clamoring for more and more. There is a remedy to that problem but it takes time.
2022 will be here before you know it and we'll be talking about the big-momma facility then. (250,000 s.f. I think).
"A bunch of stoners trying to make this company into something is laughable."
I've got news friend, this company already IS something.
Hugely profitable and growing. Not many in this sector can claim the same thing.
In a Milestone, Schumer Will Propose Federal Decriminalization of Marijuana
https://www.msn.com/en-us/news/politics/in-a-milestone-schumer-will-propose-federal-decriminalization-of-marijuana/ar-AAM8OiZ?ocid=LENOVODHP17&li=BBnb7Kz
I didn't think for a minute that you were badmouthing NGW. It's frustrating when IR doesn't get back to investors in a timely manner.
Here's what I don't understand about the Cookies deal Craig.
Before the company made the Cookies deal public, they were already selling out all their product weeks in advance...........so I didn't see much benefit to NGW near term. It would be a very different story if NGW were having difficulty finding traction, but that was never the case.
There is no dispute that Cookies is a huge influence in the retail sector. And I'm not suggesting that long term, the deal wasn't a good one.......but from the very beginning, the problem NGW faced wasn't a lack of interest in their product nor was it the need for additional retail outlets. No, instead the problem was a lack of capacity.
Facility B will help alleviate the capacity issue, but I believe that even when Facility B is running at full capacity, NGW will still be sold out instantly on everything they produce.
Put another way, I see it more as a matter of the retailers needing our products far more than we need the retailers.
Well I can tell you that absolutely they don't have NGW branded products outside California. That is currently against the law to transport and Cannabis products across state lines.
I understand. My point however is that the current 35,000 s.f. facility can only produce so much product and the company is trying to spread what product they have over San Diego, Sacramento, LA (I believe), Coalinga and a few other locals. Not sure where Cookies currently stands on the food chain. If I recall correctly, the Cookies deal was more a 2022-2023 deal.
I have no direct knowledge of the issue Craig, but I think the problem is simply that every scrap of NGW product is sold out within hours of hitting the store shelves. Currently, they just aren't capable of producing enough product to adequately stock dispensary shelves.
I could be wrong, but I don't think they have started growing / packaging under the Cookies label yet.
I can just see the shareholders meeting a few years down the road. Massive piles of cash, stacks of NGW branded products and shots of Geritol and Relief Factor and tubes of Ben-Gay.
I may be 70, but trust me, I’m not like any 70 year old you’ve ever met. A lifetime of hard work has kept me in incredible shape and genetics where all four grandparents lived to near 100 leave most people shocked when I divulge my age.
Look forward to meeting all shareholders soon.
Easy Craig. Seventy year old guys ROCK. I’m one too!
??
Rolling blackouts are a real problem..............or at least a potential problem. Equipment for indoor grows is energy hungry. Lighting, HVAC, fans, and all the pumps which feed and water the hydroponic grow all need electricity.
I still maintain however that solar just requires too much square footage to be of much benefit. These facilities have miniscule parking lots. It's not like your local high-school which has vast parking lots which can be covered with shade-structures made from solar panels.
Now...............the West side of the San Joaquin Valley has vast, VAST solar arrays, many hundreds of acres of solar panels which track the sun which shines ALL THE TIME. If the acreage were available, it would be a great long term solution to a very expensive cost.
Also.............perhaps Facility B does have a generator as a part of the plan. Mike's a really smart guy who I'm certain is keenly aware of the dangers of rolling black-outs.
Lastly, I have lived an hour away from Coalinga (Fresno) for the past 45 years and in that time, the longest rolling power outage I have experienced is about an hour and a half. Most are only a few minutes. Rarely do they extend longer than 15 minutes.
I am a huge fan of both solar and wind power. They each have their relative merits and draw-backs. Perhaps the biggest draw-back to solar is that it gobbles up huge amounts of real-estate...........which of course is a precious commodity at the Coalinga campus. I believe that currently, that real-estate is better used for grow facilities.
Yes.............indoor grows use huge amounts of power and P.G.& E. has never been shy about charging customers through the nose for power. But for now at least, it's just the cost of doing business.
Yep. A paltry 100K shares as of 11:30 on the US side. This needs to be trading 20X that amount.
Facility A is 35,000 s.f.
Facility B will be just North of 62,000 s.f., putting the total square footage at Coalinga at 97,000 s.f.
That's an increase of 277% from the current levels. With internal upgrades at both A and B, I expect that production will increase by about three-fold.
Plus, Mike is not prone to complacency. NGW may very well be eyeing additional, existing properties which can be rapidly converted.......at a fraction of the cost............and much more rapidly than is the case with ground-up construction.
BTW.......always good to have an additional MOD.
So............if one could assume that NGW is currently - fairly valued at $0.65 USD, then at completion of Facility B, that PPS should be around $2.00 USD. Other news could take that to $2.50 easily.
Precisely why we need Facility B so badly. Every single thing NGW produces sells out almost immediately. We simply need vastly more capacity.
Added at $.64
Looks like Glen Harder purchased 74,000 shares on 06/29/21
Never sure Craig. Much of the move we enjoyed in February wasn't based on any news. Conventional wisdom would suggest that only news moves a stock. But then again, sometimes things behind the scenes propel a stock upward.
What I do know is that we will leg up eventually. Next month? By summer's end? By Thanksgiving? Not sure, but I do know it will happen.
Still way too many sellers willing to part with their shares.
Last day of Q2/2021. Anxiously awaiting the earnings release as a catalyst to the next leg-up.
Legalization .............. or at least a successful legalization would definitely require some self restraint by users.
But while I would never advocate that users drive while under the influence of any drug, it is (in my opinion) a poor comparison to lump cannabis in with alcohol. I know that I'll get blasted for these comments, and again, I AM NOT suggesting that anyone should drive after partaking, but in so many ways, it is an apples and oranges comparison.
Yup. It is far from a slam-dunk, but I would argue that the forces behind legalization are far greater.........(and are increasing in power) than are the forces who continue to resist legalization.
Mexico's Top Court Decriminalizes Recreational Marijuana
https://www.bbc.com/news/world-latin-america-57645016
Now the United States is bordered North and South by countries which have legalized Cannabis.
Conservative Supreme Court Justice Thomas on "Outdated Federal Marijuana Laws"
https://www.msn.com/en-us/money/markets/supreme-court-justice-clarence-thomas-says-federal-marijuana-laws-may-be-outdated/ar-AALyl1z?ocid=msedgntp
Of course it will. A company which is insanely profitable and which is engaged in an expansion project which will increase capacity by 250% - 300% will go to $.01. Yes, that always happens.
Both those options have their merits. Harris Ranch would offer more options and the other Motel is just a nine-iron away from NGW. For those who would be coming from out of the area, the nearest airport is Fresno. That’s about an hour and fifteen minutes drive to Coalinga. Unless of course one is well heeled and has access to private air transport. In that case, I believe that Harris Ranch has an airstrip.
It would be great to put faces to all the names we have been conversing with for years now.
Really anemic volume on both sides of the border.
I was thinking more along the lines of additional governmental regulations which are always attached to such "gifts".
I would agree. EVERY "gift" from the government has strings attached.
Ahhhhh, Phoenix. One of the few places in America HOTTER than Fresno!!
I did the Ice Floor for the arena for the Phoenix Coyotes when it was built. Damn it was HOT!!!
Are you a California Boy? I know there are a few of us on here and on StockTwits who are. I'd like to try and set up a tour if Mike will permit it once we near completion...............or maybe even once it's up and running. The site of those grow rooms full of incredible plants, hungrily reaching for the grow lights is pretty awesome.
Mike was gracious enough to allow me to tour the facility about a year ago. I was absolutely blown away at how efficient their operation is. But I walked away from there with only one concern.............and that was that they were bursting at the seams. With the exclusion of the passage-ways, every single square foot of Facility A was being utilized to it's fullest extent.
As amazing as Facility A was / is, I can only imagine how incredible Facility B will be when up and running. Hopefully I can finagle Mike into letting me tour it at some point too.
Originally, Facility B was intended to be 50,000 s.f. That in and of itself is a fantastic increase in production capacity. With yesterday's press release, we now know that Facility B will be North of 62,000 s.f. That's 24% larger than initially intended. That increase is more than fantastic.
Just another example of Mike squeezing every drop out of every operation and utilizing every dollar spent to its fullest potential.
Agreed completely Etailer.
The Board of Directors................all of them are very smart businessmen. They could certainly use some help in the P/R Department, but as far as business acumen in the cannabis sector, how to grow the finest quality cannabis anywhere on the planet, and how to do that while turning insane profits, they are brilliant.
Mike is as good as they come. This company will one day, within the next few years, carry a market cap 10 times what it has today.
One aspect of today's press release that will escape everyone's attention unless they are well versed in construction is this. The company has started construction on the "civil package" for Facility B. The "civil package" is comprised of earthwork, pad preparation and underground utilities (water, power, sewer, storm drainage) and the like.
What this means is that while they are awaiting Building Permits for the building itself, they have commenced with those activities which would need to be done first anyway. This "jump starts" construction and expedites ultimate completion ahead of what could be achieved if they were to wait for complete permitting.
Very smart move.
Related to California's Log-Jam regarding licensing.
https://www.yahoo.com/now/california-approves-100m-boost-help-213751416.html
Sorry, Craig. After I read my post I see that it didn't convey my meaning accurately. I wasn't intending to chastise you. Sorry if it carried that tone because it sure wasn't intended. My bad.
Well, considering that Mike completely halted trading to announce the INTENTION to proceed with Facility B, one would think that ACTUALLY starting construction would warrant a Press Release.
Making a Press Release because they painted the men's room is a fluff piece. Making a press release because they have started construction on a facility which will increase production by 150% is not.
The web page indicates that the new expiration date is 06/20/2022.
The State of California is only issuing one year, provisional licenses.