Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
The British horticultural industry has been struggling for years. That's no secret. We have a polygopoly here in the UK with supermarkets and they tell suppliers what they will pay for goods - unless you're Unilever and have brands like Marmite. Companies have been pulling out of tomatoes for years - just check Government figures of annual crop production and see the decline. Its massive. So yes for British Sugar I imagine this was a unique opportunity to diversify . For the British consumer - they will see a rise in the price of tomatoes for sure. This is the biggest dedicated tomato grower pulling out of UK production just as imports for the first time in years become expensive for UK retailers!! So its bad news for the tomato buying consumer. So its not a ballsy move for British Sugar. Its a massively ballsy move for GW though. GW must have committed to a long term contract (which is another reason why British Sugar would want to supply GW - no UK retailers gives out supply contracts - tomatoes are a commodity). Just to convert the glasshouses must be costing over £3-4 million. This is actually a bit step for cannabis production worldwide. Its fascinating.
Its illegal because there is still concern over high THC strains. Its interesting that the world's biggest cannabis nursery has been announced with an investment of at least £10Million probably closer to £20m and all you guys are concerned is the legality cannabis. FFS. Surely something this scale - with a press release in The Telegraph, does more to push the benefits of cannabis more than anything ever done in the UK before? Its the biggest single investment in a cannabis production facility probably ever - in the world. The scale is bloody unbelievable!! You don't just build 45 acres of so of glashhouses, British Sugra would have done this over 15-20 years. For a company to go into 45 acres of production, in one go, is one hell of a ballsy and brave move. Its shows they have tons of bloody cash too. No one normally could afford to do this in one go. It doesn't matter if cannabis is illegal or legal in the UK. GW is investing 100 millions of $ to prove, for the first time through proper medical trials ,through FDA approval and through proper commercial production that CBD is viable. That will be be the biggest breakthrough for cannabis in the UK and probably the world, ever. Not bloody Charlote's Oil and some herbal medically unproven CBD cocktail - they will never be able to do what GW are doing. GW's product will be a worldwide first. Yes it maybe expensive but it will do what no CBD product can do at the moment and be branded and sold legally across the world as a medicinal drug. What GW is doing will help indirectly all the herbal CBD oil guys. Not just in the medical trails but by setting production/quality standards. They are the world leaders in CBD and what they have just done with the British Sugar deal shows these guys have MASSIVE confidence in what they have and are will have the production capability to meet demand. Why hasn't the share price gone up with with news? Its just as big as clinical trial results.
Now I've been saying this for years but GW had to start massively gearing up production big time. Now they have just announced there plans. And they are not keeping it hush hush. http://www.telegraph.co.uk/business/2016/10/25/british-sugar-to-cultivate-cannabis-plants-in-norfolk-for-gw-pha/ http://www.edp24.co.uk/business/wissington_sugar_plant_to_swap_tomatoes_for_cannabis_family_crop_to_treat_epilepsy_1_4748909 Bugger me. This is MASSIVE. It must be the biggest cannabis glasshouse project in the world by far. It must be costing GW a F***ing fortune. This is one ballsy move. These guys must have huge confidence in their product.
I think it will keep rising, maybe not constantly. I expect it to hit £10 by January. If GW get FDA and another positive result then the £10 + is easily attainable.
Just flogged all my shares! Will buy back later. Just paid for a nice weekend at Le Manoir - very chuffed
Wow Kingspin you have changed your tune from 12 months ago :-) I have always believed that GW know what they are doing. Sativex has basically failed but the experience they gained from getting that product FDA approved must have helped with Epiodiolex, I'm hoping for a big spike £7 plus when the more data comes out about clinical trials - as long as its positive - should be no reason why not now. That's any day soon isn't it? I brought a load of shares at 6.14 and sold some at 6.72. I'm holding out for over £7 and then I will sell the lot and wait for the price to drop a bit before I buy in. I don't believe for a second the buy-out rumour. Its just the wrong time to sell. They need to prove Epiodex first, get that to market and start making money. so what would $10,5 billion equate to per share? What would be the UK share price?
It was good thanks
Thanks for the info on Jeff. Not surprised about the West Indies - I know there's quite a bit of interest out there. Spain - any idea on where abouts? That would be very interesting. As forf 22nd Century Group Inc. (NYSE MKT: XXII), Its an interesting company of course. But this line caught my eye will focus on developing proprietary cannabis strains for medical applications, and developing very low THC industrial hemp that may be legally grown in the U.S. and around the world as a commercial agricultural crop well thats hardly revolutionary is it? There plants look good though on their website. Like most cannabis stocks, apart from GW, the share price is very low. But I think quite a gamble
Chicken Challenge.There are very different opinions on the forum.Some think natural ganja in the US will wipe out GW - I disagree. I think what GW are doing is a very different market. Read some of the threads - Kingskin and I have very different opions - ying and yang - but we love each other :-)
Ohhh now this is nice news!! I brought a lump of shares at 6.14 only for the shareprice to crash as GW raised more money. I looked a bit bloody daft at the time. Thanks GW!! I'm going to resist the temptation to make some money now and hold on. As Steve420 says the value could rise substantially further. Aren't there another set of data coming out very soon? If its positive then we will see another short big spike. This share is suddenly getting very interesting again
The one author who I think is good is Jeff Ditchfield. . His books are small, concise with some really great photos. Photos are really useful. I often think that some authors just stuff their cannabis books full of non- relevant rubbish to bump up the page content to make it look more 'bible' like. You can pretty much everything you need to know in a concise book at that's what Jeff does. Jeff's photos are really professional and of high quality. Commerical growers will need books more in this style.
I agree that you can't dismiss all the expertise gathered over 30 years - of course not. But it is geared predominately to small scale and previously illegal production. That's very different to large scale commercial legal production, which will be based on science. Yes GW used Skunkman Clarke etc to get going but do they use people like Van Patton and Ed Rosenthal as consulatnts now? I would love to know what GW have learnt!! Or who they are using as consultants. My guess from looking at those books they are not using anyone. I wouldn't. I don't want to sound dismissive but these books are just not for commercial growers.
I have got Jorge Cervantes book. I also have quite a few books by 'experts' who have made a lot of money from books etc Ed Rosenthal being the main one I read as he lecturers as well. Quite bit of stuff on actual growing doesn't stack up or make much sense from a commercial horticultural perspective in a lot of the books. I'm not singling out a specific author!! A lot of the knowledge comes from hobby growers over the years. There is a lot of crap out there, even in big selling books on cannabis. What I'm waiting for is a definitive book for commercial growers - all the books so far are for hobby growers really. I really doubt cannabis trees stack up but I guess it depends on the varieties you are growing and where you are growing it. Also from a commercial perspective how can you efficiently harvest a bloody tree? I think this is still a small scale idea for hobby / small market gardeners and maybe it does stack up for them? In terms of pest and disease the longer you leave the crop in the ground the more susceptible it is. The big problem with growing cannabis outdoors, I expect is botrytis (and this depends on the climate) and if the plant is left to flower naturally with natural short days. What really interests me is what commercial growers will be using to control P&D. Biological control? Pesticides? A combo. If its pesticides how will growers make sure that there are no pesticides residues in their buds? This is basically a food crop ish - so pestidicde residues, heavy metal contents, micros pathogen contents will be important. I'm really interested to see how growers in the US tackle all of this. When its illegal no one can litigate. Now its legal suddenly they will need to comply with food grade standards. This is fascinating.
The repeat flowering plants - now that's interesting - cost savings in propgation, planting etc. Taller plants? God that hippee was talking a load of basic nonsense LOL. The yield sounds great 159kg for 30 plants but how many M2 does that take up? The mature buds are at the top part of the plant - I would expect and you'd have to do trials - that a super talll plants doesn't give much more yeild than loads of shorter plants. Plus the longer you leave a plant in the ground the more pest and disease issues you get. Yes this needs a lot of space but large scale cannabis production will happen and it will move outside and the cost of production will plummet. Exciting times.
Who will win out of the bunch? Depends who's in the bunch. I've always said I thin there is a market for GW CBD and growers CBD. They are too different products. For sure GW must be growing CBD for way way less than $2.50 a gram. I would say $0.25 a gram is more like it or even lower if its outside 'sun grown'. But GW will always be crippling more expensive - however you won't inject an unrelegulated CB into a new bourne baby child. You would GW CBD as its will have gone through FDA approval. So I think there are two markets. I guess the grower herbal CBD market will be huge much bigger than GW CBD eventually but GW will have a niche for sure. They also have a 15-20 year head start on the rest of the world on research and commercial implementation - so I think they will be around for a while yet. But at $2.25 a gram the real winners will be commercial CBD growers. I just can't see that price being relastic at all going forward. There are large scale CBD growers already in Holland for example. I'm seriously thinking about moving to Canada. I mean these growers at these prices are going to make billions.
Stevie, Thanks for this podcast - really interesting stuff! They are looking at a sales price of CBD of $2.25 a gram! Or $2,250 a kilo!!! They are growing 40,000 kg a year so a tunover of $90,000,000 of a 7 acre glasshouse. Wow. That is just a ridiculous turnover from a small area for industrial scale horticulture. These guys will be make amazingly huge profit margins - even with legal and growing costs. I calculate that really they aren't planning to push production hard either - 40,000kg off 7 acres is probably just 2 crops a year - easily doable in a greenhouse. The great thing is that if the Candian Gov restrict the numbers of growers, they reduce the competition and keep the prices up. These Canadian growers can't loose!! Ker-ching time!!! So there are a lot of guys over in the US looking to make a huge amount of money out of CBD!! Forget big pharma - big growers are going to be laughing all the way to the bank if they can charge $2.25 a gram!! Way overpriced I think. but the Canadian Gov is restricting competition. LOL - perfect
No idea why the shares fell so much. They are climbing back up to the £6 mark now. No real surprises for the announcement today. I'm listening to the webcast right now. They now have £500m in their back account and due to exchange rates gains made 11m dollars in the last quarter. Not a disaster by any means. In fact everything sounds very positive. They did say that they are going ahead now with registering Epiodilex for dravets with the FDA now as they don't need to wait for the second set of results. So if anything that should be seen as a real positive.
Roots are interesting. There is a company is the US using tobaco plant roots to create vaccines for bird flue, ebola etc. Its much quicker and cheaper using roots than making normal vaccines. So roots are really interesting http://www.medicago.com/