Hi Guys,
A good friend of my owns a fancy home. He has a mortgage for 30 years of $500,000. His monthly payment of interest and principle is approximately $3300 per month or $39,500 per year.
So if/when NGW decides to place their construction financing it seem to me that they could easily carry the interest and principle payments to pay for the construction of their next facilities.
So lets say they finance at 10% since they are still a very young company and would have to pay a premium. The debt would only cost them
A loan of $25,000,000 would cost them $2,500,000 in interest payments each year. NGW currently has the cash flow to cover this.
News flash, for me they would even be able to begin the construction of their third grow facility by the third quarter of 2021. And cover the addition interest payments for an additional loan of $35,000,000. Which would add an addition debt payment of $3,500,000 per year.
NGW has shown that they know how to grow premium cannabis, and produce product at a profit. They have the cash flow to cover these construction loans. And in 3 years would be able to pay back a major portion of these loans with their profit generated by their larger grow operations.
If I sat on the board of directors this would be my plan to move the company into the major league producers in California. ASAP!!
They have the cash flow to cover the construction debt.
Buying more as funds become available.
GLTA
That
