As promised I’ve returned to the Board to provide an update after having 3 conference calls with TXTM over the last 2 weeks. The conversation was candid, open and what I felt to be transparent. This will be divided into two Post . One for JV talks and one for SA MJ License. Here is what I’ve learned:
Joint Venture:
Starting roughly in July 2018 the company began identifying and having discussions with several JV candidates that could fulfill the goals spelled out in the last shareholder update letter. ( TXTM providing Patented Technology and know how,.....JV partner supplying cannabis , capital, processing license). Both companies ultimately getting to a highly bioavailable non-psychoactive end product ( ready for distribution. TXTM commented that the list of companies desiring JV deals at this time in the industry is very long, but TXTM’s list has narrowed down to 2 possibilities. New opportunities arise weekly, but these have stood out and been worked the most. Exact names they would not give me due to obvious trading rules, but they would offer these details.
Potential JV #1 : Based in Colorado, Publicly traded OTCPink, ~14M market cap. CBD manufacturer and distributor, specializing in sales and marketing of innovative healthcare products. The JV deal may require some capital from TXTM.
Potential JV # 2 : Based in Nevada, Publicly traded OTCQB, ~20M market cap, Vertically integrated cannabis technology innovator, manufacturer & distributor.
Company is willing to put up all capital required for the use of TXTM’s Patented Technology. Amounts to ~2.5M investment.
TXTM is heavily leaning toward JV #2 deal because offers better shareholder value w/ No dilution of company stock.
Assuming smooth final talks they estimate to close either deal some time between the 2nd and 4th week of Janurary 2019. Soon!! These companies are looking for something new that gives them an edge in this quickly crowding space. If they can close deal before Jan 31st this would allow for distribution of product by June/July 2019. ( as said in last Shareholder Letter).
The original contact with these cannabis companies came as a result of known contacts to Roger Duffield and Callum Duffield within the identified companies. These contacts had prior knowledge and understanding of the Patented Technology. At least one of the JV Deal contact comes as result of knowing David Lewis as well. They consider these potential deals viable, win/win situations for both sides and great for shareholder value.
Lastly IMHO I’d say this is very good news and looking at the recent mild bump in PPS someone knows something and believe PPS is heading up from here. IMO whichever JV deal occurs it will produce a unique product that will have this small company the object of great desire by bigger and bigger companies. I feel a bit of excitement in the air. Go TXTM$$$
Stay tuned for Post #2 on SA MJ License
