Hi Guys,
I did listen in my car yesterday to the NGW investors call. And was very happy to review the transcript of this call in detail this afternoon. Since there was a lot of information shared about the company current status and future plans
So here are my thoughts.
NGW management and the NGW leadership team is just continuing the beginning of their business plan that they had established upon becoming a public company and raising a lot of money. Yes we all wish this came together six months earlier but NGW is on the growth move now.
They are building on the foundation of the reason and logic for starting Next Green Wave Company. Their stated goal of being the very best in the California weed market is coming together. The are meeting their goals of producing the very best in California of their very high quality of weed flower. And in addition have just added new branded NGW products as pre rolls. with ultra high THC% content.
Next up the company stated they will sell in the 4th quarter their unique vapor oils, and gummy bears with artisanal THC levels. All with NGW unique and very natural special extraction process making these products very natural in their production.
Not many companies or no companies are producing products with this unique process and natural quality and very high THC% content as NGW. All these unique branded Next Green Wave products are in very high demand. In fact management stated their they have sold out their current production capacity and also possible 2 or 3 times as much if they had product to sell.
The cloning of seedlings process is stated by management as tested and working. And sales will start soon with sales beginning in the 4 quarter. Seedlings should sell for at least $10.00 U.S. each and possibly more if the NGW is established for ultra high THC% capacity.
Also NGW management talked about the expansion of grow capacity.
And rightly so in my opinion they stated that they are no rush to make a final decision about the building of a new facility. And they have of lot of business details to accomplish with the current growth objectives as stated.
It does seem to me that the expansion in grow capacity will be a story in detail at some time in the late first quarter of 2021.
So here is my $$ forecast since NGW management is not ready to release this information at this point.
1. Moving flower sales to mostly preroll product should move NGW sales up to $1,250,000 per month.
2. Adding extraction sauce vape products and gummy bears branded as NGW high THC products should add $350,000 per month.
3. Selling NGW high THC% branded seedling 20,000 per month at $12.50
per plant = $250,000 per month.
My forecast for the 2021 first quarter monthly sales is totaled at
$1,250,000 flower and bulk sales
$ 350,000 extraction products of sauce/vape and gummy bears.
$ 250,000 NGW branded seedlings
$1,850,000 Total sales per month
With their first quarter monthly sales moving upwards it seems to me that they would be able to find the financing for their next capacity expansion and begin the build out in the second quarter of 2021. With completion by the end of 2021. Or possibly sooner.
That would give a forecast for business year of 2022 between $50-60,000,000 sales per year. And 2023 they would inhouse and self finance the built out of all the land at their current location. Sales would easily be over $100,000,000 per year.
Comments appreciated
GLTA
