Great news, Supra's LD is renewed and converted to a Processing...

Great news, Supra's LD is renewed and converted to a Processing license under the new Act. As I said in my last post, CCI have done very well being #5 to convert our license out of 50 odd. Glad they've kept them engaged for the next step.

Our purchase of the LD, though asset stripped, was quite cheap, especially considering 80% was paid with shares, priced based on 52c when we are currently at 27c !

My initial thought was to hope they don't try to back out of the deal, however Valens look at the value of our company not the sp, especially considering as per the AGM we're looking at listing on the CSE where Canadians have a different-positive valuation on MJ stocks.

Having a Processing License looks to have saved us from having to go thru the extra step of getting a B2B (business to business - allowing cultivators to sell to other license holders) which cultivator license holders require. We'll be able to sell to Valens under the JV from day 1. Once the initial approval is given after inspecting the 1st 2 rooms, they'll have 48 machines harvesting each 8 weeks with associated cash flows. It wont take long to expand out to at least 10,000 sq ft with 10 rooms and 240 machines producing 4500kg pa. With 44,000 sq ft they could then expand out to say 30,000 sq ft as funds allow. Under the former HC rules for LPs, the limit to your expansion size was determined by the size of your Vault/Safe. Now that MJ is legal I'm not sure if this is still the case, though many of the rules for LPs & LDs seem to have carried over to the new licensing regime and the announcement does mention security.

The new leased premise, being leased in close proximity to our present facility, should streamline local approvals. For example we have approval to grow Cannabis in our present facilities, the local authorities are apparently quite business friendly.

Another very understated attribute is we are an organic producer, using no pesticdes relying on small hermetically sealed rooms (air seal). So many crops have failed HC testing from mass producers, just google it. Our machines in the controlled small grow room environment provide consistency of product, not climate reliant. Not only does this easily pass the testing, but provides a consistent product especially for the medical use - will ensure easy sales & probably a premium price.