$FRLF Management doing things the right way for us shareholders.
On May 17, 2018, The Company concluded a contract to acquire a 430,000 sq. ft. cultivation greenhouse in Valencia, Spain, equipped with light deprivation systems, hydroponic infrastructure and automated irrigation & nutrient dispersion systems. This property puts Freedom Leaf, Inc. in the perfect position to capitalize on the enormous European demand for high-quality hemp products.
The Company incurred no dilution to acquire the new hemp greenhouse operation, as the previous owner financed the purchase with: nothing down; €20,000 a month for two years interest free; €100,000 a month plus the interest at 5% for the next 36 months, and the small remaining balance due thereafter. Management anticipates that cash flow from this operation will cover this debt service and result in significant revenue.
Contracts for the purchase of the current crop of Hemp Flower are being sold now with a minimum of 10% deposit and 5% each month with the final payment upon delivery. It is expected that revenue for the current crop will be in excess of €995,000. The crop was planted in June, will be harvested in September and delivered in October.
Should be hearing about our first harvest very soon.Lots to look forward to with FRLF.
CEO Cliff Perry comments, “In Europe, the flower commands a much higher price than it does here in the USA. Hemp cigarettes have been considered a healthy alternative to tobacco cigarettes and have been smoked there for a number of years. This and other uses of the hemp flower created a larger demand in Europe than the USA. The indoor quality hemp, such as that grown in our greenhouse facility, demands a price of upward to €1,250 a kilo. It is expected that we will harvest 2,000 kilos which can possibly bring in €850,000 to as much as €2,000,000.”
“It is important to note, alongside our most recent filing, that our company is poised for growth like never before. Freedom Leaf, Inc. has absolutely no toxic debt and no convertible notes; Our European Greenhouse is one of the largest at 430,000 square feet, if not the largest, indoor Hemp grow facilities in the world. We will have three harvests a year indoors and we also have the rights for an outdoor grow space of 20 hectares (over 2 million square feet and expecting 20,000 kilos of Hemp flower sale price starting at €45 per kilo). Currently, we are using about 20% of the greenhouse space and will produce hemp in increasing quantities with each harvest until we meet full capacity, which would yield approximately 10,000 kilos per harvest or 30,000 kilos per year.”
“For our outdoor facility, our intention is to follow export rules and ship that crop to our Las Vegas facility for extraction. We currently have a letter of Intent to purchase 120,000 pounds of additional USA hemp from a farm for the purposes of raw extraction into finely honed full spectrum oil which is the only type that we use in our CBD retail products through our IRIE and Hempology product lines. What we do not use for our own IRIE and Hempology product lines we can sell for $13,000 to $17,000 a kilo for full spectrum within the legal limits. We are also sourcing the equipment to produce CBD Isolate, which is selling upwards to $7,500 a kilo.”
IRIE, which was fully acquired in April of 2018, and Hempology, a fully owned subsidiary, are part of the Company’s full vertical integration plan.
In 2017, IRIE had $1.4 million of revenue at a 13% net profit. The Company expects it to have $2.0 million or more revenue in the 2018 calendar year with a similar net profit. In addition, Freedom Leaf will be soon introducing another line of full spectrum Hemp wellness products under the Freedom Leaf brand, which will be an online sales channel managed by an outside company that has developed nutraceutical lines from the ground up with annual sales in the multi-million dollar area within the span of a year.
Perry adds, “Being fully integrated allows all of our product lines the ability to reach higher net profits from revenue than would typically be achieved. It is my goal to strive for $2 to $3 million gross revenues by year’s end and $10-15m next year in our hemp vertical businesses, conservatively. Mark my words, this is a multi-million dollar company in the making and we will work to build shareholder value consistently along the way with each and every step.”