First off...I don't think LIHT would sell right now.
There is no reason to...we only need a loan in Vegas. The only reason to sell out would be an offer so good they simply couldn't refuse. I don't think that's the case....yet. The longer we wait...the more the Vegas buying frenzy heats up. We are not desperate to sell. We have no reason to sell, and no reason to take low ball offers.
Since I think the obvious...Rivera is here because of future ACB ties to LIHT. AUSA can join the party now...but ACB would have to wait until legalization. Therefore I don't think LIHT would sell until after legalization...when the full value of 300,000 sf of production in Vegas can be realized. By that time the Celista and Chase operations should be complete also.
Since ACB could use a large Vegas operation...and large BC operations...assuming all were fully operational 300,000 sf in Vegas and 586,000 in BC....after legalization.....$7-$10 a share...that's a couple years away.
I think LIHT would try and hold out...but when big money wants something...they will offer enough to make a deal happen...especially when there are competitors and a buying frenzy going on.
It's probably a couple years before they would sell out completely...if the money was right. So right now we're probably just looking at a partnership for funding....taking an equity stake in LIHT. The price and premium an equity partner pays for LIHT shares...is the important number now....and how a deal is structured....and who the partner is.
How much premium is AUSA or Wildhorse Capital or other potential partners willing to pay...to beat out the competition...and get a 300,000 sf slice of the Vegas cannabis market.
The biggest deal I've seen so far in Vegas was the GTI deal...$290 million for 95,000 sf cultivation/production and 3 dispensaries in Vegas.
With some of the recent deals...it looks like $1 million per 1,000 sf of production may be a rough guideline.
With 300,000 sf of licenses...that would suggest $300 million for LIHT Vegas. That would be a little less than $1.00 a share with our 330,000 million shares. If you subtract 100 million buildout costs...it leaves $200 million. That's over .60 a share...for the Vegas ops....if we sold it now as is.
Since we wouldn't be selling out now...or any time soon.....it's harder to pinpoint a price....especially since our Vegas partner and details haven't been announced.
IF....we were to get a partnership from AUSA...and our stock went up 4 X like BMMJ did soon after making the AUSA deal...then our .15 stock could become a .60 stock.
If ACB decided to take a large position or buyout after legalization....$3.00-$10.00 I'm guessing. It seems like $3.00 is very doable....and $3.00 is sort of a magic number for Rivera. With a couple million more shares of LIHT stock for getting Vegas funded and built...her total would be 4 million shares ....times $3.00 = $12 million dollars...more than she made at ACB. A little over $2.00 a share would actually be needed to pass her ACB compensation. I think Rivera and the rest of management will see to it that LIHT stock gets past $2-$3 dollars.
IF ACB is interested in buying LIHT...and LIHT was interested in selling out...it would still be done in stages.
Maybe talk first...lay out conditions for a deal...send a trusted financial wizard to facilitate a partial partnership...take an initial equity stake through a subsidiary partner.....come back later and complete additional equity stake or buyout.
The answer to your question....what is LIHT worth to me? Same thing as Rivera....my future.
GLTA
GET LIHT....RIVERA DID
