Replies to post #33481 on Sunset Island Group Inc (SIGO)

[BeerIsGood]

SIGO isn't receiving anything. Sounds to me like all they are doing is letting REI Ex use the licenses on the property VBF Brands is leasing.

SIGO is receiving $400-500K worth of equipment

2. REI Extracts shall pay for the acquisition of the equipment necessary to produce extracts for the joint venture.

[BeerIsGood]

Doesn't SIGO already have extraction equipment?

[surfkast]

Can someone point out the signed legal agreement with REI Extracts?

The contract signed by both parties?

Maybe then we can find out who this mystery company is.

The forward looking 8 K states "The Company has agreed to terms with REI Extracts regarding an extraction and distribution joint venture. Equipment has been ordered and is being shipped to the Company’s location in Salinas, California."

Inserted by author. (What equipment has been ordered? A PO would be nice. Or even the types and brands of equipment.)

The terms of the joint venture are:





1. REI Extracts shall manage and be responsible for all costs associated to the extraction operations under the joint venture.








2. REI Extracts shall pay for the acquisition of the equipment necessary to produce extracts for the joint venture. The Company has estimated the equipment costs to be approximately $400,000 - $500,000.








3. REI Extracts shall pay for all source material from licensed cultivation farms.








4. Company shall receive 20% of the net revenue from activities related to materials sourced from 3 rd party licensed cultivation farms.








5. Company shall receive 25% of the net revenue from activities related to materials sourced from the Company’s licensed cultivation activities. The Company will provide its trim and other bio-waste for extraction








6. The Company shall receive all the funds and pay REI Extracts its portion semi-monthly.








7. The Company will be able to produce its own extracts outside of the joint venture.


All forward looking statements!

[growdoe]

Feels good knowing we have more experts in the building, referring to REI. We dont have to worry about SIGO starting out as amateur extractors. It also appears that SIGO will be taking the lead from a brand / relationship standpoint. I say this because SIGO is distributing the extract and recieving the payments. SIGO pays REI. In the process, SIGOs brands get built. Would be tough to build our brand if our extract product lagged behind expected standards. I believe SIGO management clearly know what high quality product looks like - they are consumers themselves. Relationship building is extremely important in this stage of the industry - so few licensees. This is where I see Pizza and Music really shining.

These additional experts also bring their own opinions of what high quality means. You know the extractors will peek into the grow bays and give the Master Grower and SIGO feedback on the grows. No shortage of opinions there.

We got a great team forming. We, us shareholders here on the idealogical front lines, are a part of the team, too.