SK3 Group Inc. (SKTO)

[lowlowz]

I am excited for the financials to come. It probably won't look too pretty because most of it will be covering the work of old management; however, just seeing transparency with the names of new ownership on it will give me piece of mind.

In my opinion SK3 Group wants to become a big (or the biggest?) player in MMJ. From their website it says they will "Providing Licensing, Management , and Logistic Services to Medical Cannabis Collectives throughout California." (link) and on their other website it says they will be providing "Private Banking and Merchant Service Solutions for Medical Marijuana Collectives" (link). In the news from today it states their new acquisition of "over 40 acres of real estate in Southern California to develop indoor and outdoor state-of-the-art growing facilities for the collectives it is managing" (link).

In my opinion SK3 Group may be starting to develop upon the "Merchant Services" aspect of their plan. With a large, year-round, supply of MMJ it sounds as though they will be able to provide "standardization and transparency to this rapidly growing segment of the alternative care field" (link). It sounds to me like they might plan on developing business accounts with dispensaries/collectives that allow for the repayment of the product it receives from SK3 group at a later date which will begin to lead us into the banking aspect that SK3 Group plans to incorporate into their business plan.

It seems to me like this is a necessary first step to take in the execution of their entire business plan. Once dispensaries/collectives have accounts with SK3 group I am sure this is when more of the "Licensing, Management , and Logistic Services" are available to them. But that is just my speculation and I believe we will hear more about that in the future.

In my opinion the following statement also from today's news is very important. "The facilities will also feature eco-friendly recirculating aquaculture systems to grow quality farm raised fish and to provide an organic, self-contained, growth environment for medical cannabis. The aquaculture system will be used to grow and maintain the fish, capture the waste so there is no discharge into the environment, and then recycle the waste, capturing the resulting methane gas for heating, using the liquid for growing organic crops, and applying the remaining waste as fertilizer." When I first read it, it sounded like "fluff"; however, I remember hearing in a documentary that many individual MMJ growers/consumers/etc. are against the corporatization of growing because they felt individual growers would spend more time to ensure a quality product. It sounds to me like SK3 plans to address this issue by providing a quality, eco-friendly product from day 1.

By the way it does appear that the doctor in one of the articles linked above renewed his medical license -- I remember reading some speculation about his "expired license" a few days ago (link). With the new expiration in 2015 it appears to be a bi-annual renewal process.

As always, do your own DD, don't trust what I have said research everything on your own, this is all just in my own opinion.

Go $SKTO