RGI 0.00% 4.8¢ roto-gro international limited

Ann: RotoGro to Acquire 100% of Canadian Lawful Cannabis License, page-33

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  1. 1,540 Posts.
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    The share price has drifted on low volume since announcing the Supra deal. I personally have trouble understanding why people would sell when we have 3 big deals coming online. But then looking at some of the genuine concerns people have raised on this thread, I can see how the market as a whole could be a bit skeptical. If the market thought these 3 projects would come to fruition in 2019 I'm quite sure the share price would be well north of current prices.

    With Supra's LD, there would appear to be concern over the conversion/renewal process & the addition of cultivation. I wouldn't expect the renewal & conversion to take very long & could be announced any day. The transfer of address will depend on how long it takes RGI to build the 2 grow rooms, probably a while as they need to build the facility 1st.

    As for Freshero & Gibio I think the market is looking for firm signed contracts. The grow cycle for Cos lettuce is only 13 days, so they must have grown a few crops by now. A firm contract wont be too far away. As for Freshero, I'd expect the trials to conclude in January, then a signed contract. Both these contracts will cause a re rate and must be close.

    When I've spoken to the company, and ask them about time frames for some of their customers to place orders (eg Amfil's order ) they just have a look of frustration on their face & just say it's up to Health Canada. (which is why they bought a license for themselves). On the other hand, mention Supra, Gibio or Freshero, the frustration changes to a sense of achievement & optimism. Although there are no signed legally binding contracts, management consider it a done deal. I am quite sure if the small scale sellers out there had a chance to speak to management (or attend the AGM) - they wouldn't be selling.
 
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