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Hi buysellfredmcfc - Complete agreement WRT the LDA, brilliant deal with good terms.
WRT sales figures the worst case scenario will be that we have to wait until 30th September 2021, less than 6 months from now; lets not forget about all the other good news to come that may land anytime from now. Very exciting times ahead.
the typos I threw in for free !!
KD...
yes, the 1st yr drawdown was part of the deal...or we pay 10% if not used..
however...we shall incur many, nany dtartup costs, UK, EU, etc...growing costs with GVB...ongoing packaging, etc etc...
some have gone on to say whst a carp deal...yet show me other deals where you have vast amounts at your disposal, and only if you need it !! and no real dilution...
15m will soon be used when we start moving...and we will !!!
I for one, am still strapped in for lift off, just hope soon as these posters who come on here absolutely clueless to the REAL big picture are making life difficult for new investors...a bit like the 4p spread !!
dyor etc..
I think that also with smokes and I guess gummy's, as with normal cigarettes, Once people find a brand and taste that they enjoy they are very loyal to that brand, and will probably go out of their way to purchase a brand they know they enjoy rather than nay other. Therefore, offering trial packs, vouchers etc just to get people to try your brand is a good promotional thing to do. Out of every hundred that try your brand, the hope is that a large number will enjoy it, and look for a local supplier.
I've read in Africa and other such developing country's where smoking is on the rise, Tobacco company hand out free fags, and packs to get non smokers hooked ( unethical - but once you have a loyal customer he / she pays out daily for the rest of their smoking life). We don't have that ethical problem as product is tobacco an nicotine free).
Thanks Keepdreaming.
Its really good to hear what you, and hopefully others are thinking as its so easy to just follow your own thoughts, not realising what other views are, and can be a good leveller.
Thanks for your point regrading profit per day, they did announced they were happy with the 5 / 6 products being sold per day, per outlet and were happy with that to get them to where they wish to be. So yes, conservative $10 net profit per outlet sounds more realistic at present.
As all things the the profit per unit will become an average over time anyway, some outlets sell more and others less.
Also good point about finance agreement, especially the $15 m to be drawn this year ( already identified where it will be spent, i imagine), hope to hear more about that sometime soon.
The 125 outlets a week was their target ( or agents target), which they said was actually achieved in the early days - so Ill keep them to that for now, as its all we have to compare with, when the actual figures are released.
As a newby here, I do not have the luxury of having a very much cheaper share price, to cushion me so i have to be carful when i buy, to ensure i'm not spiked, BUT with John Story continue buying at this price, and the sp holding at this level well at the moment - it seems the low 80s maybe a good place to add some more.
GL and Thanks Vas.
Plus I would imagine there are a lot of promotions going on initially to get the brand recognized
Vas - I think it is impossible to have a clear idea of the number of outlets by the end of April, its moving/changing too fast for them at this stage, and while I would dearly love to know more information regarding the number of outlets and the sales figures per store, I am more than happy waiting another couple of months for them to build a stronger position and ultimately get a monster RNS out there.
One thing i would say, is that i would half your profit per store to be conservative. They have told us before that they were selling 4 - 5 products per store during their trail phase, and we know each product makes $2.5 profit, therefore, a nice round $10 per store.
One other thing to think about, is why would they require access the $35m Financing Agreement with LDA Capital, and was it $12 or $15m drawdown committed in the first year.
If we were organically growing in the USA alone at between 500 and 1000 store per month (at least $150,000 increase in profits each and every month) why would we need access to this money?
I have a feeling that we will be getting some pretty big monster RNS's concerning product roll out in UK, Europe and who knows, even Asia. If that is the case, I can quite easily see why we would need access to large amounts of capital very quickly.
Going only by what we have been told in RNS's and assuming that Zoe are making a decent profit on each unit sold and ONLY using the announced 6,000 outlet rollout at 500 outlets per month, which started early November 20.
My back of a fag packet calculation comes up with around 3000 outlets end of April.
If they have managed 2500 at $20 net profit per outlet then should be making $1,400,000 each and every month going forward plus new revenue from 500 new outlets, every month !
This from Jan 2021 RNS - 3 month into rollout this particular rollout.
" The months since the end of the reporting period ( Oct 20) have been marked out by growing sales figures and the striking of key strategic partnerships, and we look forward to sharing the fruit they bear in the months and years to come."
Is this in line with what most of you think we are at this present time? if not, what do you think the monthly revenue / profit should look like. Cheers Vas
If it’s good enough for him it’s good for me. Another £5k in. Couldn’t resist. :-)
Wow John story increases his holding. The free float gettin smaller and smaller
.
The squeeze is going to be massive on the shorts when sales news lands