Member Info for BlackHopper

Moving on to crops and harvests, the first indoor plants will be maturing around about now. We know the company is targeting valuable seed production for the indoor crop. However, it is possible they might harvest some flowers if doing so provides an initial stock to continue fabricating Chill smokeables. As the crop indoors will not all be ready at once (they could not have planted it all at the same time and indeed would not want to) they can make a decision on flower versus seed at any stage. Seed revenue has been looked at in a crude fashion by others and I am not going to use maximum figures here. Seeds themselves will need to be tested for CBD/THC levels as feminised, low THC high CBD seeds will be the desired product for greatest return. All would be dried and stored in batches to give buyers confidence. We will no doubt be growing on our own seeds on as a rolling test and the former D8 team will be refining their strains going forward.

If seed shortage is a real factor, and there is evidence it might be, the I think an estimate of 8 million seeds at $1 each is quite conservative, given the facilities ability to produce nearly double that before next spring. Most of this hypothetical $8 million should enter the books before 310320 but perhaps not all. However, let’s not forget we should have three lots of 10,000 plants at 12g CBD plus 20-30% (gas mix) to allow us to manufacture all the CBD products projected.

That’s 30,000 x 12 x 1.25 making 450,000 grams CBD which at $6 wholesale (premium organic full spectrum CB quoted at $5-7 in recent article) gives $2.7 million. Well, we will not be selling all of it wholesale. As the CBD oil becomes available, it will be used to manufacture product and hopefully that will generate a return per gram perhaps double the $6 to the company. Perhaps more… You can see that seeds plus CBD from only the indoor facility could generate north of $10 million up to the end of March 2020. Maybe they won’t make quite that, or maybe they will make a bit more…

Now, clearly there will be lots of costs to subtract from these revenues. Salaries, overheads, manufacturing costs , marketing costs and administration expenses. Profits will be much lower than the stated figures. However, do not forget that all this time, East Denver will still be pumping money into the business. A real cash squeeze, if there is one, could be offset with a wholesale CBD sale just for now. The ‘magic oil’ is literally being put in just about everything at the moment, as numerous editorial articles attest to. I do not think it would be hard to sell some of our fine oil if we need to.

What have I missed? Hmm? What have I missed so far? Doh. OUTDOOR.

Here is my post of 16th July again…. slightly modified

We are waiting on the Annual Report covering the year up to 310319, due on 26th July. The numbers here will reflect the development of East Denver last year and it’s switch to the 7.5% free carry model with True Oil as operator. The first 3 months of revenue flows in 2019 will be in there, plus the initial Wildhorse and Powell revenue, but then all the company costs and West Denver, Kansas, DTU patents etc. However, this report will not have any bearing on Zoetic and the new Hemp/CBD business commenced with the 8.5p placing in March 2019.

The numbers in the report will not set the place on fire, but the revenues for 310320 should be very, very different.

I have been thinking about the potential revenue for the year we are in and trying to make some sensible guestimates. This is hard of course, as we do not have production cost figures for the various Zoetic products, or any sales data for those products that have just been released.

Taking the Chill brand smokes first and the 26 convenience stores we know they have been distributed to initially, we know a pack sells for $12 and thus I am going to assume for ease HNR might make $6 per pack, just as a guess. If each store sells 10 packs per day then 10x6x26 makes $1560 per day and x30 gives us a figure of $46,800 per month in smokeable sales alone from the 26 retail outlets. I accept this is a crude estimate and may be over or indeed well under the actual sales total, but I just want to see what might be generated.

We know also that the same product is going to be available via Leafy Quick’s platform in Chicago and across the US and via the companies own direct website. Chew pouches and vape products will be added to the product ranges and I suggest that by the autumn when everything is on sale and digital marking raises awareness of the products then the monthly figure above will be well exceeded.

So much for Chill, what about the main Zoetic brand? One can see that tincture bottle of premium CBD sell for between $30-100 on many sites. Product is already in the UK and I expect a distributor announcement soon, perhaps with the report notification. The range of products under the Zoetic flag will hopefully generate revenue to dwarf Chill. For these reasons, and others I will progress to, I think that fear of a need to have a placing in the autumn, due to lack of funds, is entirely misplaced. By September some significant return revenue will be incoming and by November much more so.

Continued below SEEDS AND OUTDOOR

indeed.....BS15 ;-)

As we have the jolly discussion below and BS and JJ share their wisdom, it is worthy of not that I could sell 120,000 shares at 8.829 on HL if I had wanted to. I do not but it does suggest that the market is very open to shares at the moment.

If you are familiar with HNR you will know this is not always the case.

They want your shares. i wonder why ??

No JJ. Simply put. If you and your 'team', or the wider market engineers that for a brief period, why would I apologise for it?

I have been posting about the prospects for the business up to 31st March 2020, and comparing those to the period that is about to be reported upon.

Neither you or Burning Spear or D14 or AI etc will engage in relation to the prospects for the CBD business as this year develops.

You have just also suggested that you fancy a drop below 8.5p. This admits two things. One, that you would like the SP to drop so you can buy low. A rational desire but an odd one for someone who says he holds a lot of shares. Two, you suspects a 'technical' reason for this. Technical being you and your 'team' pumping in a load of little sells on the day of news release, irrespective of whether it is 'bad'.

This is the 'sell on news' and 'buy back quickly' ploy obviously. It may not work for you however, and of course I hope it does not.

I am not going to be joining you in that game. i do not need to and also think it's and bit cr@p.

Finally, if the SP is below 15p on 31 December then I will post I was too optimistic and hence 'wrong'. I don't think it will be.

And another stupid and childish post. On and on... only you are not averaging down are you?

You are buying at bottom whilst pretending to be a cynical observer.

So BS, let's be clear. You did not post on this BB in the 40's, the 30's, the 20's or the teens.

You only arrived in the last few weeks to plague the board. You always mention all the other projects in your oh so funny, ironic way, but you NEVER address the new CBD business because.......... you can't. You can't bring yourself to say negative things about it because you know you will be soon proved wrong. JJ is relying on the same.

You are just a pair of sad trolls desperately trying to get a few more cheap shares.

I know most people on here know this already but, on this Friday in July, I think it's a good thing to spell that out plainly.

Not at all JJ for me. So wrong there.

I am not stupid, contrary to what you might think, and I'm sure you aren't either.

I am very confident some of the buys listed over recent days are yours. You are not bothering to be here for nothing. You are getting them at about the placing price. Well done. I know you are not done yet and hope to get a few more. Maybe you will even manage to get some at a few tenths of a penny less than today's price. Maybe. Maybe not.

I would just ask you to reflect on how effective your tactic is when played out over many weeks in the same style. And is it a bit 'sad' ?

Just a thought...

A few days ago BS, you asked for some estimates regarding Zoetic and the CBD business. You asked because no-one had given any figure estimates for the future. I have twice given some and have deliberately been reasonable , or even pessimistic in terms of seed yield, cost per gram CBD, online retail sales etc

And yet you have chosen to not comment on them in any detailed or reasonable fashion. No comment at all. No offer of you own projections. just the same sarcastic, ironic ramblings. Similar to D14 you are now fully focused on the report about to be released, which we all know deals with the past. The period to 31.03.2019. Anyone would think you have an agenda.....

What are you projections for the CBD business up to 31.03.2020 ??

Nice one IANS! The ducks are lining up.....and there's been a 1 trade.... whoooooooo

NN I have a strong feeling that advising you is against the rules. However, i bet you can guess what my answer is.

Ask yourself a quick question. Who is selling those shares at 8.8p today?

It'll only be a PI who is under extreme duress, or who is extremely impatient, or it could be....

Well, I'd love to be wrong Blacksheep! I think we will definitely targetting the $1-1.4 per seed price point though I would be happy with 8 million sold.

I think we will get more than $3 per gram for out CBD considering it's organic, but the $5 is meant to be pessimistic in the sense that we will receive much more than that on a per gram basis for Zoetic and Chill products sold. Our online and retail sales are not included...... at all.

revenue could easily exceed $20 million but then you have to subtract costs and those are harder to estimate. I do not think costs would be half the revenue though!

Thanks for your thought BlackSheep. I think we will be at 20p well before this time next year.

To summarise from the original, available crop growth data and CBD price data, and being a bit pessimistic we have as revenue up to 31st March 2020:

Indoor wholesale CBD. 450000g at $5 = $2.25 million
Indoor seeds. Only 8million at $.8 = $6.4 million
Outdoor wholesale CBD. 1,200000g at $5 = $6 million
Nominal smokes sales. 8 months x 50K = $.4 million
East Denver poor perfomance. $1 million

Total revenue based on poor performance, low seed yield, low price wholesale, no cost benefit of Zoetic sales at all, anywhere or any online sales of Chill products and poor performing wells at East Denver. And no other projects coming online or contributing equals..... $16.05.

Knock of $6 million for costs. What do you get? Yep. $10 million.

I think we will do better than this. Quite probably much better. Then the following year we will be in a whole new place and 'old' projects can be 're-started'. If you cannot see that then ... well.... Specsavers?

But the SP is poor so clearly Mr Market want to see some product, hear about actual production of CBD from harvested crop, see websites live and hear about sales and seed testing. All of this will come in the next few months.

So you guesses it. Yep. I am. I am predicting the SP will AT LEAST bag before Xmas and perhaps more than that.

AND please copy this and post it on Dec 30. I'm happy to revisit it.

so.... JJAL....no opinion
....BurningSpear....no opinion, no imagination
....D14 ??....no trump?

So, you have no imagination, or at least not enough to make any kind of projection based on plant yields and current wholesale prices for CBD. Fine.

Burningspear appears to have a lot of imagination, and quite a bit of time to bestow his thoughts on the board. Let's hear from him.

Not also, in my post below, I did not address you as you are the 'king of the pointless, fractious argument' as you have proved many times. Your last two posts fit you style well. You just want to disrupt any remotely constructive discussion in favour of a destructive discourse.

......BS?

Oh JJ.....

"trying to goad people into a argument" from you! We have waited for that gem, and now it is here. Sweet.

What's your take on the numbers please? No goading, polite.

Will we be able to sell our CBD wholesale if we need to?

You decide

https://www.bbc.co.uk/news/business-47400789

nearly 36 hours sing I posted this Burningspear. I am surprised and disappointed you have not responded. You did ask for some estimates a few days back and here are some. They even run into the millions.

What’s the matter? Having trouble thinking of a silly way to refute them? Surely not.

What about you Dianne ? You like to spin some numbers. What say you? What are you projections? Or are you at bridge....

Neil my friend, May I politely point out a couple of things.

The marketing ploys of Ignite will work for a certain segment of the overall CBD market but equally will be a massive turn off for other areas. The emphasis on ‘fit birds’ is pretty childish and even a bit offensive , depending on your views. I am confidently predicting we will not be following them there.

However, companies such as this will raise the overall awareness of CBD within the population and will generate editorial. This will help Zoetic as more people decide to try CBD and see if it works for them.

Clearly as more CBD is consumed then the wholesale price will rise if supply cannot keep up. Also good for HNR.

So hence my question of why. I wish you luck with your quest for naked hotties it but remember to put a couple of drops under your Young’s so you do not get too excited .