REI deal benefits SIGO in the following ways: *
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Posted On: 03/02/2018 10:08:56 PM
REI deal benefits SIGO in the following ways:
* Practically guarantees that SIGO will be able to monetize all the material from every harvest. If the flower yield is high quality, they will sell the flowers for, say $1500 - $2000 per pound. All the other source material (lower quality buds, trim, stems and leaves) can be extracted for $1250 per pound. All parts of the plant, minus the major branches, will be turned into revenue.
* Allows SIGO to monetize their distributor licenses. REI pays for the 3rd party source material from licensed farms. SIGO can go get the material and makes 20% of revenues. This revenue stream has no greenhouse space constraints. We could develop 10, 20, who knows how many relationships with 3rd party farms. If SIGO can distribute 100 - 200 lbs. of source material to REI, they'll produce an additional 100(18%) - 200(18%), or 18 lbs - 36 lbs of extract and make 20% of $5K per pound, or $18K - $36K per month. That's just the beginning stages. Who knows how much poundage can be distributed to REI. Potentially thousands of pounds, I assume, is possible. For REI to make $1 million revenue in a month, they would need 250 lbs. of extract (times 80% of $5k/lbs). To get 250 lbs of extract, REI needs x(.18) = 250, or 1,388 lbs of source material per month, and SIGO makes $250K per month.
* Allows SIGO to become experts at extraction risk free. REI buys the equipment, pays the costs. SIGO learns by working with experienced extractors. Once cultivation expansion is solidly in Phase 3, SIGO can buy its own extraction equipment having learned what works and how to do it.
* SIGO expands its cultivator, distributor, and dispensary relationships to support future product development.
Very nice deal. And none of the St. George funds are used to do any of the above, except maybe pay for gas for someone to drive around get all bio-waste.
* Practically guarantees that SIGO will be able to monetize all the material from every harvest. If the flower yield is high quality, they will sell the flowers for, say $1500 - $2000 per pound. All the other source material (lower quality buds, trim, stems and leaves) can be extracted for $1250 per pound. All parts of the plant, minus the major branches, will be turned into revenue.
* Allows SIGO to monetize their distributor licenses. REI pays for the 3rd party source material from licensed farms. SIGO can go get the material and makes 20% of revenues. This revenue stream has no greenhouse space constraints. We could develop 10, 20, who knows how many relationships with 3rd party farms. If SIGO can distribute 100 - 200 lbs. of source material to REI, they'll produce an additional 100(18%) - 200(18%), or 18 lbs - 36 lbs of extract and make 20% of $5K per pound, or $18K - $36K per month. That's just the beginning stages. Who knows how much poundage can be distributed to REI. Potentially thousands of pounds, I assume, is possible. For REI to make $1 million revenue in a month, they would need 250 lbs. of extract (times 80% of $5k/lbs). To get 250 lbs of extract, REI needs x(.18) = 250, or 1,388 lbs of source material per month, and SIGO makes $250K per month.
* Allows SIGO to become experts at extraction risk free. REI buys the equipment, pays the costs. SIGO learns by working with experienced extractors. Once cultivation expansion is solidly in Phase 3, SIGO can buy its own extraction equipment having learned what works and how to do it.
* SIGO expands its cultivator, distributor, and dispensary relationships to support future product development.
Very nice deal. And none of the St. George funds are used to do any of the above, except maybe pay for gas for someone to drive around get all bio-waste.
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