Blue Diamond Ventures Inc (BLDV)

[Kool Aid Man]

According to this-- "The project is being funded by a new 506(C) offering created for H360 Labs by Block45 Legal, that will raise $2.5M USD for the construction of the lab in Missouri and the R&D Facility in Puerto Rico."
https://www.newsfilecorp.com/release/56638/Blue-Diamond-Ventures-Inc.-Launches-Harvest-360-Labs-Inc.

Here's the skinny on 506(c) securities.
https://www.sec.gov/smallbusiness/exemptofferings/rule506c

"$4.2 million contract.. to be received or PAID by H360 Labs?

As I read this PR of May 27, 2020 it says H360 "wrote the winning application for Green Orchard Labs LLC." (Note: The only name that pops up is Gary Stickney https://www.limswiki.org/index.php/Green_Orchard_Labs,_LLC LinkedIN page says is CEO of OxyWellness LLC. Nothing turns up regarding that company which causes me to think that "oxy wellness" was likely one of those hyperbaric oxygen therapy scams like these the FBI shut down. Not sure what qualifications he had to be granted a testing license --except those H360 gave him.

Anyway, apparently both companies are located in the same old Dollar General store. https://www.cannaqa.wiki/index.php?title=Green_Orchard_Labs,_LLC

According to this PR it says H360 Labs struck a "Trade-Mark & Know-How Agreement, related to cannabis analytical testing with Green Orchard Labs, LLC. in exchange for a projected $4.2 Million USD in royalties and fees over 6 years that will be generated by a new medical cannabis testing facility."

https://www.newsfilecorp.com/release/56638/Blue-Diamond-Ventures-Inc.-Launches-Harvest-360-Labs-Inc.

It doesn't sound like the applicant has any experience or ability to test anything or even build out the facility himself so I don't see how he could be paying $4.2 million in royalties and fees to H360/BLDV. IMO it seems like he's basically a front man that's giving H360 a legal foothold to operate in the state in exchange for a cut of whatever they generate. If so, then doesn't that constitute an "expense"?