Thursday, March 27, 2014 10:08:32 AM
TRTC's Potential Revenue From Sunshine Growers
A favorable ruling by the Florida Supreme Court suggests that Sunshine's grow facility now has a capacity to yield approximately 70,515 lbs. (35.52 tons) of cannabis, instead of tons of low-priced produce.
That estimate of 35.52 tons of production is derived from calculations published in a white paper authored by Jonathan Caulkins of Carnegie Mellon University, entitled, "Estimating Adequate Licensed Square Footage for Production," in which Caulkins surmises that professional growers can expect a yield of 500 grams per square meter of plant space, per crop, of cannabis from a grow facility.
Using Caulkins' parameters, calculating the production capability of cannabis from the 10-acre Sunshine facility is, as follows:
500 grams per sq./meter / 453 grams per lb. = 1.1 lbs. per sq./meter
1.1 lbs / ~9 sq. ft. = 0.1126 lbs. per sq./ft.
10 acres = 435,000 sq./ft.
435,000 sq./ft. x 0.1126 lbs./ft. = 53,421 lbs.
53,421 lbs. x 0.66 (net plant space) = 35,257 lbs.
35,257 lbs. x 2 (crops per year) = 70,515 lbs. (35.25 tons)
And at "50% wholesale" price from the market price of "$5,000 to "$8,000 per pound, retail," according to Terra Tech's Derek Peterson, the Sunshine facility could approach $229.1 million of potential revenue during the first year of production, which is quite bizarre.
Even at California's price of "20% less," than prices quoted elsewhere in the U.S., according to Peterson, the Sunshine facility could still generate more than $183.3 million of annual revenue.
TRTC's cut would be in the form of a marketing and distribution percentage, which, in the case of the Gro-Rite deal, is 10% of total sales. Using that marketing percentage estimate for the Sunshine deal, TRTC's cut from a full-facility production of cannabis at Sunshine equates to approximately $18.3 to $23 million of revenue per annum.
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