My notes on share price.
Through its investment division, RQB Capital Corp., the company made its first acquisition: Alberta Green Biotech, a 35,500-square-foot facility with 7,000 kilograms in annual production capacity with a pending Health Canada application. RavenQuest also just acquired Bloomera, a 20,000-square-foot licensed production facility with 4,000 kilograms in annual production capacity. The company hopes to ramp up to 11,000 kilograms per year ($55 million in annual revenue) when fully operational.
Robinson forecasts a $15 million revenue stream on the management services side alone for 2018 to 2019, which means the company will have a positive cash flow. Once its production facilities are up and running, he expects to see $55 million in annual revenue on that side of the business. He didn’t provide a detailed estimate, but its partnerships with First Nations will add revenue as well. The company is also in early conversations with potential international partners; Robinson told investors to keep an eye for more partnership announcements going forward.
Although RavenQuest will not be a major producer early on, we are favorable on the growth trajectory. By the end of 2018, RavenQuest expects to be producing approx. 11,000 kilograms on an annual basis and will be able to capitalize on a market shortage. We are favorable on the capacity that will be coming online and will monitor how the team continues to execute.
July 11, 2018
RavenQuest BioMed Inc. (CSE:RQB) (OTCQB:RVVQF) is pleased to announce that its wholly owned subsidiary, Bloomera Inc. (“Bloomera”), has signed a memorandum of understanding (the “MOU”) with the British Columbia Liquor Distribution Branch (“BCLDB”) to pursue the wholesale distribution of cannabis produced by Bloomera. It is expected that the agreement to be reached with BCLDB will cover the first 12 months of the legalized adult use cannabis market in Canada and see Bloomera sell all of its production over that period to the BCLDB. The MOU provides that Bloomera will supply a broad assortment of cultivars and end products to the BCLDB.
Bloomera produces 4K and that will go to BCLDB.
Edmontons - Alberta Green Biotech Produces 7K
Consulting fees and orbital gardens will make 15 million in Revenue
If you go to Priceofweed.com
You will see that weed sells at 8/gram, Ravequest used a conservative 5/gram.
At $5 dollars/ gram that's 22 million from Bloomera and I imagine if its high quality weed they can sell it for a little more in Toronto, let's say conservatively, 7/gram. 7000Kilos × $7/ gram equals $49 million. I estimate 71 million in revenue between end of 2018 and 2019 plus 15 million in consulting fees and orbital gardens. That's $86 million in revenue end of 2018-2019.
Please add or correct my math if you see things differently. This does not include potential tax breaks with indigenous people.
I would love to hear some color from the company on McGill university, and the type of cultivars they are developing. Can they develop a cultivar like Kush that is commonly known? Is that their goal? Or is RBQ's goal to develop the best quality medicinal product? How is the medical weed website coming along?
I may have to make a call to the company if someone doesn't beat me to it.
Thoughts
