$TURV Informational Updates will be sent out on Monday mornings at 9:00am ET.
Our growth continues. Our first tenant has harvested, tested and cured its first crop. All marijuana products sold in Colorado must be tested for potency and contaminants before being sold. The GCP 1-1 tenant submitted it's first batches for testing early last week and the results were returned by the end of the week. Potency was within the desired range and the contaminant, or "microbial", tests were passed.
The GCP 1-1 tenant will begin selling its crop on Monday. They expect it will be completely sold by week end. They should receive approximately $250,000 a week in cash flow from sales. They have accrued approximately $1,500,000 in payables (AP) to the Landlord and McGrow that began coming due on June 1, 2017. They will be expected to pay off the AP over 24 months and pay the current months rent to the Landlord each month, and pay the cost of new materials and services at the time ordered. Rent has been accruing since December 1, 2016. Rent payments begin on July 1, 2107.
A new production cycle began last week for GCP 1-1 tenant. Mature plants in vegetation were moved into flower bays, firmly rooted plants in propagation were moved into vegetation bays and new clones transplanted into one gallon pots in the propagation bays. Each week, this is the perpetual production cycle for each grower. GCP 1-1 hired 5 new workers to handle the increased weekly workload.
We expect the GCP 1-2 tenant to bring clones in on Monday and begin transplanting them into 1 gallon pots in their propagation bays. We installed a fence on behalf of the Landlord to segregate the two tenants as required by Colorado MED rules.
A commercial drying machine arrived on Friday last week. We expect a nitrogen machine to arrive this week. Combined, the machines cut drying time by 80% and increase potency by as much as 20%. These machines eliminate contamination risks during lengthy normal air drying and reduce oxidization, which reduces potency.
We reached an agreement with the potential Arkansas licensees last week. We will begin drafting a license proposal for them. McGrow earns cash consulting fees and as much as 25% equity interest in the license, if permissible by state regulations, if the potential licensees get a license.
Copyright © 2017 McGrow, LLC, All rights reserved.
Providing Stakeholders Information on McGrow and the Grower/Tenants the Company Serves
Our mailing address is:
McGrow, LLC
2000 S. Colorado Blvd
Tower 1, Suite 3100
Denver, Co 80222
