Right now the company is selling fertilizer produced by 3rd parties and getting around $200 per ton and still making a profit, however when the factory goes online it will open a lot more doors and they will be able to command higher prices for certain types of fertilizers.... in some cases as high as $600 per ton. So the addition of the factory isn't going to have a linear impact on revenues it will be parabolic from where we are now.
100,000 Tons made by 3rd parties = $20M (currently & 3rd parties will continue to make certain fertilizer for KIWA in future)
"The factory to be acquired by Kiwa will be completed in accordance with Kiwa’s construction plan to facilitate the production design of combining of microbial fermentation and terminal fertilizer products. When fully implemented, the factory will produce approximately 200,000 tons of Kiwa fertilizer products every year, primarily for sale to the Yantai fruit cultivation base"
200,000 Tons made by Kiwa @ $400 tons (avg $ estimate) = $80M
20M+80M = $100M in 2018.
By 2020, KIWA expects have about 3 other factories located throughout china...+$300M?
Its pretty obvious to see where this is headed.....just takes time.
