A few rants on what we can expect as 2019 progresses.
Firstly by the end of the year I'd expect Gibio to be up & running with their 420 machines in full production & plans in place for their 2nd if not 3rd facility. I'd also expect Freshero to be in a similar place. With Supra, I doubt they'll have the whole 44,000 sq ft facility fitted out & producing however I'd expect maybe 10,000 sg ft with 240 machines & 10 grow rooms. Of course with the licenses fully transferred & an offtake agreement with Valens.
I'd also expect Amfil's customer, Miracle Valley, Frozen Penguin + others to have their licenses and so healthy sales to Rotogro. Just as 3 big deals were announced in 2018, I'm sure some more deals will come our way during 2019.
What most people look at is the share price, so how that progresses will depend on their implementation schedule. I'd expect the above to occur before the end of the year, and the share price IMHO would be well & truely north of $1 when it does.
With Gibio they've stated the design etc is being done this Q, with construction slated for the next Q. Much here depends on whether they lease or build a premise, I'd assume they'd lease so it would be a matter of finding a suitable premise & fitting it out with grow rooms & associated electrics, plumbing etc etc. Of course they'd need to finance the build out so RGI will have to decide on what sort of equity stake it wants. Their contribution would probably be by way of discounting the machines, fertigation etc.
Freshero are suppose to order 100 machines during the initial training & testing period, so due soon. Also due soon is for Freshero to announce a formal agreement with the supermarket chain & formalise the agreement with Rotogro. Their website states: "Co-location of Warehousing operations utilising available land owned by the major retailer" So sounds like they will just have to fit out a ready built warehouse. As I've stated before, Tony Mahoney's record shows him to be a fast mover. I wouldn't at all be surprised if they beat Gibio to be in production. Tony is also a RGI shareholder, doesn't mind having his own skin in the game.
With Supra, similar to Gibio, the speed of implementation will depend on whether the landlord has to build a facility or he already has a premise & they just do the fit out. They were very specific saying 44,000 sq ft at the time of the initial announcement, so sounds like they have a ready built facility lined up. As the initial cost of the fit out was stated at $500k, I'd assume initially just 2 rooms with 48 machines to satisfy the licensing inspection requirement. Then expand from that.
An interesting year ahead.
