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Friday, 08/04/2017 12:12:36 PM

Friday, August 04, 2017 12:12:36 PM

Post# of 65773
Hi William,

Hope you are doing well. Firstly I would say a big kudos on the great success that sGBY has had so far. Wishing you all the best to execute all your plans for the future.

I am by no means a big investor, however I was hoping to have a couple of questions answered regarding the future of SGBY:
Do we have a time frame when the pesticide testing equipment would be ready by? Equipment has passed all internal standards, methods have been developed and accreditation paperwork has been submitted to ORELAP. We are pushing them to approve the accreditation so we may perform our tests in house asap. Realistically 30 -45 days is what we have been told.

Say a year from now, where/what value do you anticipate SGBY to be trading at (assuming a 1-100 RS): I would say the 1:100 RS is realistic. I can not speculate on future prices. As a significant shareholder I am working to maximize shareholder value for all.

Would you start putting out revenue forecasts in the near future ? We will have our revenue results reported shortly. Forecasting is a little difficult, because this is still a new industry and legislators and state program administrators are still moving dates around. I have provided market estimates in prior press releases, if we can replicate market penetration that we have achieved in Oregon in those other states, the future revenues for SGBY will be significant.

Would you have the company showing positive cash outflow before pursuing RS? Not likely, as you now, we are in a significant expansion phase for the next 18-24 months, especially in California. As such, the expansion will require significant capital to grow eating into our cash flow and require supplemental financing. That is one of the primary reasons for the reverse stock split, is that we can raise additional capital via equity investment that minimizes effective dilution for all. I don’t like dilution like the next shareholder, however if we can raise capital, invest appropriately, the next effect will increase longer term shareholder value.

My concern with RS is the timing. I am a bit nervous that the RS does not hurt the existing share holders ( i know that the management will be one of us as well). ** We are right there with you. Thank you for acknowledging. The entire management team has work endlessly to get this far and we know we have only run half the marathon.