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Here is my LIHT analysis and projections for 2019.

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LongNDeep2   Wednesday, 01/16/19 02:03:10 AM
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Here is my LIHT analysis and projections for 2019.

I have listed a couple of scenarios. For those who questioned the ongoing existence of LIHT, or how our planned facilities would get funded...one analysis...is for LIHT operations that are already completed or funded.

For those concerned about LIHT's share of revenue/profit in the fully funded deals or obtaining a license in Canada...one analysis only includes Vegas projections.

Operations that LIHT has completed and/or funding for:

Vegas...10,000 sf...complete ....revenue projection....$3.3 mil.

Vegas...65,000 sf...funding ($20 mil) ....revenue projection....$22 mil.

Canada...100,000 sf...funded...revenue projection...$30 mil.

Washington State...30,000 sf...pending funding...revenue projection...$10 mil.

DHS Dispensary...revenue .....$1 mil.

205,000 sf......funded operations.....annualized revenue projection.....$ 66.3 mil

$ 66.3 mil x 50 forward revenues = $ 3,315 mil valuation ($3.3 billion)
Divided by 400 mil shares = $ 8.28 per share

LIHT Currently Funded Operations............$ 8.28 per share Valuation.

400 mil share count arrived at by adding our current 300,000 shares, plus 100 mil shares if we used the $20 mil loan and paid back $30 mil at .34 share prices.

LIHT has not designated the $20 mil for any specific project.

In my plan...to expedite and complete the construction of the Vegas operations....the $20 mil would go to get the 65,000 sf bldg. completed ASAP. This will increase LIHT's share price also.

The 10,000 and 65,000 sf buildings alone...should produce $25.3 million in annualized revenue. $25.3 revenue x 50 = 1,265 million (1.265 billion) divided by 400 million shares = $ 3.16 per share. Getting the 65,000 sf building completed, greatly enhances our share value.


Since we don't know the details of how the revenue and profits will be split in our fully funded operations (Canada and Washington)...I have done an analysis using only our Vegas operations...which LIHT 100% owns and controls....and has all licensing in place.

Vegas only.....300,000 sf....$100 mil revenues

X 50 = $5,000 mil

Divided by 500 mil shares = $10.00

500 mil share count arrived at by adding 400 mil shares...plus 75 mil shares at $1.00 per share ( $50 mil to be used for 225,000 sf building). I added another 25 mil shares if more cash was needed, additional shares were issued for other reasons, or LIHT shares were not at $1 when we need the funding...looking for conservative numbers.


LIHT total buildout

595,000 sf.......$200 million revenue

X 50 = $ 10 billion valuation

Divided by 500 mil shares = $ 20 per share

How long will it take LIHT to complete the total buildout?

If we find a partner to fund the California operation ( which I presume they are looking, ...if they are, they couldn't mention it)...everything would be funded except Vegas. If we proceed along the lines I suggested above....accept the $20 mil funding deal when the shares get higher...in the .30's. Build the 65,000 sf building ASAP. That could be done by mid 2019. At that time...all other operations should be funded and complete or near complete. This should have LIHT shares at least $1.00 by then. LIHT has stated they need $50 mil to finish out Vegas. With LIHT share prices at $1.00 by then...$50 mil in financing would only cost us 75 mil shares...but would allow all operations in Vegas to be completed (or close)....in 2019. If our fully funded partners proceed as planned...all LIHT facilities could be completed this year (or close).


Why sell everything but Vegas operations?

Right now cannabis companies are not profitable, mainly due to rampant ongoing expansion and only partial revenue streams. In the next couple years cannabis companies will need to be profitable. Forward revenues have been working as a valuation guide...but profits will ultimately prevail. Our Vegas operation should be the most profitable of all our operations, mainly due to better cannabis prices. As the industry starts demanding profits over forward sales....every operation we have...will drag down the profit margins produced by the Vegas operations. The stock price will be most impressed by profit margins...not how many facilities you have...draining profits down. LIHT is growing the best cannabis that can be grown, and will get top dollar in the respective markets....but Vegas is the crown jewel of the cannabis markets. While we don't have to sell non Vegas operations...because we are getting funding for them...but down the road, when profit margins matter...lower priced cannabis markets will be the least profitable and the least desirable. Properties that we don't get 100% of the revenue from...will contribute less to earnings. Our profit margins would be highest...with only Vegas operations.

Can LIHT shares reach $ 1.00 by mid year?

Vegas 10,000 sf operation has two buildings with five harvests per year each...10 harvests per year total, or one harvest every 36.5 days. If $3.3 million revenue is used...each harvest would be $330,000....excluding any value added operations performed through extraction and processing. By mid year LIHT should have produced five harvests from Vegas, and done extractions and processing to further increase the harvest revenue.

...By mid 2019...

Vegas...10,000 sf....5 harvests....$1.65 mil (before processing)
Canada...20,000 sf ....(2 buildings) should be producing by then
Washington...30,000...should be operational
California...50,000 sf...could be operational
Vegas...65,000 sf...could be operational
175,000 sf ....could/should be operational

That means infrastructure in place to generate roughly $55 million annualized revenue

X 50 = $2,750 mil (2.75 billion)

2.75 billion divided by 400 million shares = $ 2.50 per share valuation by mid 2019

That is why IMHO our share price should easily be $1.00 - $ 2.00 by mid year.

These are my plans and not LIHT's...there is no guarantee they are planning to do any of this. But I see it as a valid path to get all LIHT facilities finished and operational...this year. If we keep all the non Vegas properties...that's fine...they should all have funding. If LIHT decided to sell all the non Vegas properties...the funding partners may be interested in them. If I can find a way to get all LIHT properties completed this year...I am sure the LIHT board can too. I have confidence this will be an amazing year for LIHT and shareholders. I also think LIHT may end up being one of the best performing cannabis stocks this year.

Top Performing Stock In 2019

If LIHT completes all buildings this year that could put us near $20 per share.......and $ .20 per share up to $ 20. per share would make LIHT a 100 bagger for the year. I realize that seems like a stretch...but anywhere close to these numbers...should make us a top performer.

If I have missed calculations or errors...let me know.

We are a much different company than we were six months ago. We didn't know where our funding for any of our projects would come from....now we only need to find someone to fund the California cultivation/ production operations. We have over 200,000 sf of funded facilities completed or under construction. WATCH US GROW.


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