This is the presentation I referred to in relation to the Capital Raising. I don't think the market has bothered to read what it says looking at today's sp. Also with the plans shown in this presentation, I would have thought it "market sensitive".
The big news is they plan to build a 10 room, 240 machine MJ cultivation facility as per my post on the 20th. As I said then, this will be a massive money spinner, sales realistically of $45m with a cost less than $1 a gram. As the presentation says, 4,570kg is one third of Aurora's production - they have a market cap of $4.6 billion, we are $30 odd million, less than one hundreth the size!
With regard to the cost of such a facility, Dynamic posted that the Gibio facility could cost around $16m for 80,000sq ft, which wouldn't be too far off the mark, so 10,000 sq ft would be considerably less than that. Remember too a large part of that was for RGI's machines, fertigation & build out. This would obviously be done at cost for their own facility. They might even have a tissue culture clones/seed bank set up by then too, bringing the costs down even further.
Looking at the timeline, it is going to occur BEFORE they build the Gibio facility which should be early next year. I believe the 8' rotary garden will be completed in August, so expect the acquisition (not application) of the MJ licence shortly after that.
Then before that, they are also going to import MJ products, I presume to establish a market for their cultivation facility. This is going to be yet another revenue stream. Further down the track they plan to establish a 2nd MJ cultivation facility and of course the Gibio facilities will start rolling out.
The market always looks to the future, just needs a few material signs from RGI that the above plans are being implemented. It will only take a few funds to take notice, or investment research organisations to digest this, and the sp will takeoff.
RGI Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
