ALGA - Algae International Group, Inc. DD>>> st
Post# of 63699
ALGA Business Overview>>>
Algae International Group, Inc. (ALGA), through its operating subsidiary American Seed & Oil Company, Inc., is in the business of hemp production to supply seed to the expanding hemp farming market and hemp based consumer and commercial product markets. The Company is also piloting a number of other cannabis related consumer and commercial products and service offerings as part of a comprehensive strategy to stimulate a rapid expansion of the growing marketplace for legal cannabis.
ALGA Website>>
For more information please visit http://www.americanseedandoil.com/
ALGA blog>>
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ALGA Products & Services>>
Algae International Group, Inc., through its operating subsidiary American Seed & Oil Company, cultivates cannabis to include hemp and marijuana in the States of Vermont and Maine. The Company is also engaged in the processing of harvested hemp and marijuana plants in order to deliver a variety of health and wellness consumer products in addition to supplying commercial clients. Cultivation and processing operations to date have been concentrated on establishing best practices and validating economic and market opportunity assumptions. The company plans to stair step up the scale of its operations in 2015 to include generating revenues from the sale of processed materials derived from hemp and marijuana.
In addition to cultivation and processing, the Company has entered into a number of partnership agreements to pilot potential health and wellness consumer products that would utilize cannabis cultivated by American Seed & Oil. The objective of the pilot partnerships is to increase potential revenue and margin opportunity by integrating American Seed & Oil cannabis into end health and wellness consumer products whereby American Seed & Oil adds to its proceeds from cannabis sales a share of the proceeds from the end health and wellness consumer product sales. The Company continues to develop additional potential pilot partnerships to add to its existing partnerships.
While not all 50 states have yet established regulations for the cultivation and distribution of medical marijuana, American Seed & Oil will nevertheless pursue a medical marijuana strategy nationwide.
Currently, the health and wellness benefits from medical marijuana are credited largely to two substances found in cannabis, Tetrahydrocannabinol (THC) and Cannabidiol (CBD).
Hemp typically has negligible amounts of THC but is rich in CBD. The therapeutic benefits of CBD suggested by preclinical studies include the treatment of seizure disorders, chronic pain,anxiety,nausea,schizophrenia,diabetes,PTSD,alcoholism,strokes, cardiovascular disease,cancer, as well as other ailments and various conditions.
Marijuana is typically rich in THC, but with limited CBD. Like CBD, THC also has many therapeutic benefits but is better known for its recreational characteristics.
The United States Drug Enforcement Administration (DEA) has differentiated hemp extracts not containing THC from marijuana in an effort to avoid disrupting ‘legitimate industry.’ Accordingly, hemp seeds, hemp oil, hemp lotions and other hemp infused products are readily available at boutique grocery stores, supermarkets and department stores.
In the states where legal medical marijuana policy has not been established, American Seed & Oil will work to establish a market presence by making CBD from hemp available to health and wellness consumers.
BRIEF CORPORATE HISTORY
Algae International Group, Inc. initiated the American Seed & Oil Company operation to pursue the cannabis industry approximately one year ago. The Company had previously been endeavoring to build a business around a process to produce biodiesel from algae. The biodiesel market opportunity softened in response to reduced government subsidies. The algae cultivation and bio-diesel processing experience proved useful in developing plans for American Seed & Oil’s cannabis operation.
Through acquisition, organic business development and key contracts, American Seed & Oil Company has established the necessary licenses to cultivate hemp in Vermont and marijuana in Maine. The Company has conducted one complete hemp-growing season and is currently expanding an existing marijuana cultivation operation. Fiber, seeds and oils from the first hemp crop are currently being processed and trialed in a number of different consumer and commercial products.
COMPETITIVE DIFFERENTIATION
American Seed & Oil Company has conspicuously included defensible differentiation into its national marketing strategy in order to establish, grow and sustain market share within the cannabis sector which is experiencing nothing short of gold rush attention from entrepreneurs and investors. According to a recent research report published by GreenWave Advisors, the marijuana market within the United States if legalized nationwide could reach $35 billion by 2020.
Central to the Company’s differentiation strategy is producing superior product through research partnerships with recognized universities that can identify, validate and enhance the natural attributes of cannabis beneficial to human health and wellness.
To further differentiate itself and insure long-term operational sustainability, American Seed & Oil is
1.) integrating the local community into its production process and
2.) integrating the customer community into the product development process.
American Seed & Oil is leasing local land and contracting local farmers to tie the Company’s economic success with the local community’s economic vitality. The Company thrives if the local community thrives and the local community thrives if the Company thrives.
Similarly, the Company is engaging the cannabis health and wellness consumer in the development of cannabis infused products. American Seed & Oil is not designing its products. American Seed & Oil’s customers are designing their own products.
American Seed & Oil is integrating the veteran community throughout its production process and health and wellness consumer product development cycle. The Company is actively engaging organizations helping to train veterans and put them to work in sustainable and organic farming. The Company is also exploring research project opportunities to evaluate the efficacy of both CBD derived from hemp as well as medical marijuana in the treatment of Post Traumatic Stress Disorder (PTSD).
2015 OUTLOOK
The Company anticipates meaningful sales activity from its core cultivation operations in Vermont and Maine to begin in the second calendar quarter of 2015 (Company’s fiscal year end is June 30) and to continue to increase throughout the year. The anticipated revenue for the 2015 calendar year from the core cultivation operations is roughly estimated to reach $1 million. However, the Company anticipates additional revenues from its health and wellness consumer pilot partnerships that have not yet been estimated. The Company has also established a reseller relationship with a foreign hemp cultivator and expects revenue in the 2015 calendar year that has also not yet been estimated. Management believes the revenue potential that might be achieved through reselling for the foreign hemp cultivator could be substantial.
The Company currently has approximately 40 million shares issued and outstanding of which 33 million are closely held. The Company’s current working capital requirements are small and growth is anticipated to be primarily funded by high margin sales. The Company has not experienced any undue pressure in regard to debts associated with past operations. Management is optimistic that debts associated with past operations may be mitigated.
ALGA Stock Information>>
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