Cannabis Strategic Ventures (NUGS)

[Occasian]

==Longer post== First, Dec 6 - https://globenewswire.com/news-release/2018/12/06/1663084/0/en/Cannabis-Strategic-Ventures-Works-Toward-20-Licenses-for-250-000-square-feet-of-Cannabis-Cultivation-Large-California-Growth.html- Recall, at this time they were pursuing 20 licenses --- "The targeted cultivation site is located in central California, an area with a rich agricultural heritage and well-established distribution infrastructure. The targeted location is equipped with 250,000 square feet of greenhouse space and mostly in-place irrigation, storage facilities and other critical infrastructure components that will allow operations to begin under the Cannabis Strategic Ventures name immediately after receiving permitting." - based on a conservative estimate of 30g per sq foot...

Next, Dec 19 - https://www.prnewswire.com/news-releases/cannabis-strategic-ventures-makes-moves-in-the-california-market-665153783.html - NUGS executing on what they led in December PR. ""While we have already signed an employment deal in Washington with more on the horizon, we are now beginning the process of performing due diligence on multiple emerging cannabis cultivation opportunities, with the most advanced project being located in Santa Barbara country.""

Then Jan 3 - https://ih.advfn.com/stock-market/USOTC/cannabis-strategic-ventures-NUGS/stock-news/76397271/cannabis-strategic-ventures-plans-first-california - Alluded to a 2 acre project in Santa Barbara. What project has 2 acres in California..

And now Jan 16 - Updates that they are finalizing partnerships with 40 commercial licenses. Curious what level these licenses are. No word on that just yet, but we can assume commercial grow, hopefully those 20 medium mixed-lights in addition to potentially more.

Now, recall my earlier post where one medium mixed-light license could roughly cover 10,001- 22,000 sq ft.
1 acre = 43560 sq ft.

Let's assume that 250K sq ft. has the 2 acre project included, so it's maximum of 250k sq. ft. of grow space.
That means roughly 5.7 acres of grow space basis.

On a conservative estimate ( 1 license per 10,001 sq ft), they would need:
250000 / 10001 = 25 licenses required.

On a liberal estimate (1 license per 22,000 sq ft), they would need 11 licenses.

If the 2 acres is in addition to the 250k sq ft, that means 337,120 sq ft.
ConsEstimate: 34 medium mixed-light permit licenses required
LibEstimate: 15 medium mixed-light permit licenses required.

Let's switch over to the gram output per sq ft., using the 1st article's conservative estimate of 30g per sq. ft. output:
At 250,000 sq ft: 7.5M g (267,857 oz)
At 337,120 sq ft: 10.1M g (361,200 oz)
1oz = 28g

In california, old reports as of 2018 estimated $250 per oz (https://honestmarijuana.com/what-does-weed-cost/).

With only ONE cycle, this would equate to:
At 7.5M g (267,857 oz) = $67M
At 10.1M g (361,200 oz) = $90M

Now remove 35-45% of that on a conservative estimate due to loss/expenses, still pretty damn good cashflow.

Can someone check the math here? Am I missing something