Do you have any suspicions on what technology THC are looking to...

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HairyRichard

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26/03/19

20:05

Post #: 37892212
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Originally posted by Red Baron: ↑

I'd like to think you're all right & we sell a lot of machines to THC Global, but I think you're barking up the wrong tree.

THC was called The Hydroponic Company up until it's name change in Nov last year. It earned $2.7m in 2018 from hydroponic sales. It also builds green houses etc. I'd say there is very little chance they'd use our equipment when they make their own. Wouldn't look good to their clients if they used someone else's hydroponic growing equipment. I think just a bit of poetic license in their claims.

They lease some land in NSW which they hope to develop into medical MJ, IMHO that market in Aust would be very small. They also bought a lab in QLD for $2.5m which can be used for MJ.

IMHO it has the most similarities to us compared to any other MJ stock on the asx. Our machine & Fertigation sales will easily eclipse their hydroponic sales. Our MJ cultivation wont be as big, but will be producing much earlier and more economically. No way they can do 37,000kg on 20,000 sq ft. Ours is 6 times more efficient per sq ft than a standard cultivation facility & we can only do 9,000kg per 20,000 sq ft or possibly 13,500kg stacked 3 high.

Of course we have the fresh food deals which will be massive. It's very hard to compare apples with apples, but we have a market cap of $25m, they have a market cap of $82m. As long as our 3 main projects stay on track, which so far they are - albeit at a slower pace than most would like, we will be rated in a similar fashion. I think THC deserves its $82m mkt cap.

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Do you have any suspicions on what technology THC are looking to utilize to increase their yield?

"Present yield estimates for the first stage development of the site is projected to be 37,000 kg of driedflower annually, however the Company is in negotiations with agricultural technology partners todevelop a higher yield-per-square-foot from the facility which will significantly increase projectedannual production."

They think they've found something which will allow them to grow "significantly" more than 37,000kg pa in 20,000sq ft... I would LOVE to see what they plan on using.

RGI Price at posting: 23.5¢ Sentiment: Buy Disclosure: Held
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Do you have any suspicions on what technology THC are looking to...

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