I just got off a 20 minute phone call with Donnell VIGIL, the President and CEO of QASP.
Several things she clarified if I could remember all of it as I did not record the call (that would be illegal without her permission).
First of all, she has a great many irons in the fire. One iron has been tempered and placed on the shelf for use- the Hydroponics operation.
The PR two days ago was bigger than it appeared to be with the wording. She expects that if the numbers supplied to her team by the Hydroponics op are correct, they surpass the Dispensary numbers anyway.
The hold up in progress on the Dispensary is with the legal team and is not holding her back from the other deals. If that one falls through, she has other deals that are currently being investigated that will enhance shareholder value. So if this particular deal goes through or does not it does not matter a lot because of the additional irons in the fire currently.
Secondly, she is actively seeking and has already identified several facilities, one in particular, that has zoning, power etc. requirements met to proceed with moving down the road with getting that going. Her team is currently in the DD stage and nothing is imminent, although there are several things looking quite good.
The plan is to partition off sections for other Dispensaries to use this facility on a non-cash basis, meaning that the goal is to actually succeed in obtaining the original dispensary deal and get product from that to sell in their own- as well as grow their own - the 70/30 rule.
The goal is to get the company audited and up list. Her estimate in time frame for this is approximately the end of fiscal 14. The reasons given for the length of time are the deals, DD, and new schools coming online in the next short while, and that she mentioned that there are other deals in the works beyond that in other states with regard to Hydroponics. This is quite a load given the personnel available to assist her.
She is retaining a SEC lawyer to ensure SEC compliance on the Dispensary deal. This is taking time because as we all are aware, lawyers like their T's crossed and their i's dotted. The other legal team is working with the state officials currently on the Dispensary deal.
The flight schools are going to be profitable because they have DHS SEVIS approval and already have lined up foreign students to take classes. I asked about the seemingly un-profitable nature of the current business model and her response was that they have been focusing heavily on maintenance of the aircraft, whereas other flight schools have not been and mentioned a different flight school that recently had a two death crash. She was definite that she would not place the shareholders in a lawsuit situation because of maintenance negligence.
It appears quite evident that not much will hold her back as she has a plan to execute and also has plans that are alternatives which may be equally lucrative to the shareholders.
She is working on private placements for the funding model as opposed to diluting shares into the market, as I suspected.
We talked of a few other off topic items that were of mutual interest, and it should be made abundantly clear that she has been working incredibly long hours on these deals and opportunities including "workends". She has mentioned that she is TAKING TIME out in the evenings to accommodate family time that she has missed. This is one of the reasons why she has not had the time to confirm an interview with the Lumberdoktor, although she mentioned that she has been in contact with him today with regards to such.
I recommended to her that she do a conference call type of town hall meeting like WebEx or similar, for the reason that it gives the shareholders the opportunity to get questions answered so that others can see. It provides clarity and openness that other one way communications do not. I personally have done three of these myself this week alone.
So expect a LumberDokter interview and something coming out to clarify and expand on the previous PR in the next short while, and a web conference call in the near future. She thought that was a particularly good idea, and seemed excited to move on that.
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