From Q1 report:
"Global Consortium, Inc. (“GCGX”), through its wholly owned subsidiary, Global Consortium Holdings Inc., owns Indulge Oils, a Cannabis Distillate. Indulge Oils is currently being manufactured in Sacramento, California, by Global Consortium Group, LLC a licensed cannabis Manufacturer."
Now, we have all seen the tweets regarding the agreement with Global Group where Indulge will receive about $2,100 per liter of THC oil in a 25/75 split.
Again, from Q1 report:
"For 2020 the Company will focus on fulfilling the current order in place for 25 liters a day with a conservative estimate of $2,100 per liter paid to Indulge Oils. This assumes the buildout of the extraction room and the inspections passing. Should Indulge deliver a product in the mid to high 80’s in potency, then the price per liter could increase by $1,000 or more earning more money for Indulge since the costs will stay the same."
Now, we know subsequently that the extraction room was completed and the inspection passed. We also know from subsequent tweets that the potency of Indulge's oil is approaching 90% or better. So, it looks like Indulge will get paid, $2,100 + $1,000 dollars per liter =
$3,100L * 25 a day * 30 days in Apr. $2,325,000 = Global Holding's share.
$9,400 per liter @ 90% potentcy.
$2,100 = Indulge's 25% + $1,000
$6,300 = $GCGX 75% share.
$6,300L * 25L day * 30 days in Apr. $4,725,000 = $GCGX share in Apr.
* 3 months in Q2 = $14,175,000
Now, Matt mentioned earnings so the following estimate may be conservative. Anyway, if I'm reading this right and the split is right then $GCGX annual potential, from a revenue standpoint, @ 50% margin is as follows:
Qtrly Rev: $14,175,000
Yearly: $56,700,000.00
Margin 50%: $28,350,000
Yearly EPS: $0.0217
Multiple: 24
PPS: $0.521
$GCGX...
It's all there in the report; please check my work. Like you, until I see the report I am uncertain but I like these numbers alot. Go $GCGX...
