TREES Corporation (CANN)

[petermic]

Hi CoachZ- let me try to follow your thinking.

I'm trying to find where they will get $9.6 million rental revenue from this one property but I'm thinking you have read $100,000 ANNUAL revenue as $100,000 MONTHLY revenue.

So assuming $100,000 annually, here's how I value this..

From the 8k - "On December 31, 2013 the Company purchased a property in Pueblo County,Colorado for $450,000. The property, which is located in a suburb of Pueblo, Colorado, consists of approximately three acres of land, a 5,000 square foot steel building, and parking lot.

The Company also agreed with the tenant to begin construction of an 8,000 sq. ft. light deprivation greenhouse on the property at a cost not to exceed $400,000.

Once construction is completed, rent will increase to $100,000 annually for the duration of the lease."

So, $100,000 per year for a total investment of $850,000. That's a very nice cap rate (the real estate industry's measure - inverse of PE) of 11.8%. If they can turn around and sell that property, after construction and with lease, at an 8% cap, they could receive $1,250,000 or $400,000 in profit before interest and management expense etc. Let's say $300,000 net.

So, to my mind, in order to justify a current market cap of $150 million they would have repeat that performance 500 times. That seems quite a stretch.



Please let me know what you think. Peter