Hi Guys,
HD thank you very much for you thoughtful and well presented summary of your recent visit to NGW facility.
About current capacity/expansion. If you remember Mike clearly stated in a recent earning web audio session that his stated goal was converting the current bulk flower from 90% in sales and 10% pre rolls, and extracted product, into 10% bulk and 90% pre rolls and extracted products.
Also NGW tried their own retail outlet. It failed, and they learned their business lesson. NGW continues to expand their SKU of branded high value NGW pre rolls, and extracted products. Using the very expansive California retail weed shops in all of the major cities throughout California. They are growing their distribution without the required fixed overhead cost of their own retail shops.
NGW sales will take care of themselves accordingly. Easily moving from significantly upwards from NGW current monthly of $1,200,000 per month.
Remember the in house extraction of product has not even started up. And the value added, selling, and profit dollars from this group of products will add significantly to the total sales dollars of monthly sales.
My estimate is as follows. By the end of the first quarter of 2021 NGW will have average monthly sales of $1,800,000. This converts to a annual sales rate of $22,000,000 per year.
With this amount of annual sales NGW will have the cash flow to self fund the future expansion of the next growing facility. And with this monthly sales run rate they can find short term loan financing for the construction of their next grow facility.
This to me is the most logically business expansion plan. As Mike has stated one careful and thoughtful step at a time to continue to expand NGW into a the premier weed brand in California.
Again thank you very much HD for you investment in time for all of us investors.
Buying more as funds become available.
GLTA
