Hi Guys,
My feeling about the financing for growth going forward.
It seems to me that NGW will easily be moving its sales into the
the range of $1.5 million U.S. dollars per month with the next 2
quarters. The reason being that the extraction facility will be
up and running. And new extraction products will be into the
market and sold thru such that the new sales will reach the
financial reports.
The gross margins will also improve with the higher profit
prerolls, and extraction products. In fact the margins should
move to well over 60%.
NGW will have the cash flow to self finance the next buildout
of their new facility. They could easily assume a credit line
of and or mortgage of 20 million $$ to start the building. And
at the current low interest rate at 5% or less would cost NGW
only $ 1,000,000 per year in financing costs.
Easily payable when your sales are approaching $20 million dollars
per year in 2021. And by 2022 the new building start up will just
take NGW to another level.
That would be my vote if I was on the board of directors of NGW,
No need to dilute the company stock at this price point.
By 2023 business condition just too hard to forecast at this point
but more expansion again could/would be up for self financing as
sales would move over $30 million dollars per year.
