Marijuana Inc (MAJI)

[FatFatCat]

The value of GRN Funds is not clearly known. We know how much money they manage, but not what their revenue looks like. If they charge a 1% management fee on the $1.35B they manage, that makes revenue of $10s of millions. Not too shabby. Using the old "5 x annual revenue" to establish the value of the company, it could range between $50M - $100M.

*Lots* of assumptions and guesswork there obviously.

Of course, since it appears GRN Funds will simply remain the owner of DCGD and not part of DCGD, the value of GRN Funds isn't important in the valuation of DCGD. What will make DCGD worth something is what merges into it.

Based on the current pps and to meet the same "5 x annual revenue" rule of thumb, DCGD will need to produce annual revenue of $25M. Very doable for GRN Funds, but we don't know of any other related venture that generates that much revenue.