London South East | The UK's favourite investor portal.

Burning spear, I love the way you dig up an article that suits your agenda and continually repost it..

That is from an article in April.

You do realise it is possible to startup businesses and move quickly, don't you?

You know like less than 4 months after starting already have 16 acres of plants growing, a 33,000 sq foot indoor facility with plants growing, products already selling in 36 stores and rising, products already in more than one country, let alone more than one state.. That's Zoetic by the way, the current one, as in now...

LeafyQuick, as in the current one, as in now, has already established itself, has already built and closed one pop up store, and appears to be repeating that again now popping up somewhere else, and the two very well educated people you are referring to, are no longer making their own deliveries, but making trips to New York and Miami where they are shortly about to expand to.

Try and keep up.

So we wait.

What do we know?

Ox Distributing, at last release, had 26 stores, up from 18 for the Chill brand.
Ox also tweeted / teased that Chill was coming soon to Austin Texas.

They distribute to around 1,000 stores.

So smokes, and soon, vapes and chewpacs will be selling and being pushed out by our Colorado based distributer, but already lined up out of state store or stores.

Ox Distributing, or rather the Schrader family subscribed to 1,000,000 shares at 10p.

LeafyQuick, a Chicago based operation providing a same day CBD delivery service to Chicago, along with the same in NYC and Miami, and national sales online, will also stock Chill.

LeafyQuick have a tendency to promote and pop up physically as well as online, and Instagram and twitter hints show a shop and display cases being put together so doesn’t take a genius to see more opportunity there.

LeafyQuick will also stock Zoetic products.

They seem choosey, so selecting our products is good. Chicago has a population around 2.8m people so as an initial same day base thats great.

If the products do well with LeafyQuick, what population NYC for same day service?

Alongside the wholesale USA opportunity with those distributors, we will shortly have our own direct sales platform up for both Zoetic and Chill.

UK:

Zoetic has already dispatched tinctures to the UK and we await a) our own direct sales and b) distribution into stores.

Chill and Zoetic have launched their brand pages on Instagram, I believe they look good and expect bigger pushes when products are available online.

But that’s products. No guarantees of course they will all take off, but given distributor confidence in US and stocking rate of stores and more stores for chill, I’m hopeful these will be successful.

Outdoor growing.

As seen on Linked In our hemp plants are growing outdoors. 16 acres were targeted to be planted at a planned density of 2,500 an acre. Hopefully that was the case.

Indoors we have a 33,000 square foot facility, investment in genetics / cloning /and our own gas fertilizer mix to use on sections of plants.

The facility is setup to produce seeds, targeting 500 a plant. I expect plants to be harvested in an ongoing cycle as opposed to 10,000 plants all started together and harvested together, a continuous production line if you like, and I expect somewhere between 30-40k plants a year from indoors, depending how slick operations go.

As for outdoors, intention is to grow to 100 acres next year, although growing itself is likely to be more competitive over time, hence being vertically integrated and have seeds, growing and products.

HNR is in early enough to position itself well. Time will tell of course, no guarantees, but from what I’ve seen of the facility, and the people driving this, it has every chance of being a success.

Trillsg.

Valuing HNR at present seems to be a challenge.

I don’t know much about VRFM. It is a very healthy valuation they have though.

At present our CBD business is only just (as in just started) selling products, and as yet only the smokes on sale.

We do have good distribution deals it’s seems for a company which is only a few months old.

Ox distributing clearly took us on along with the Schrader oil stores, initially 18.

We now know it’s 26 (or was at last news release)

We know from twitter and Instagram that Ox are pushing us not just in Colorado but clearly they have 1,000 stores they distribute to and Austin Texas appears to be getting the chill brand soon also.

LeafyQuick on the other hand have agreed to stock both Chill and Zoetic. Initially they can distribute to Chicago same day, and nationally as an online seller.

They (LeafyQuick) also operate same day delivery in New York and Miami and are an expanding business. They do not stock a lot of different companies products and appear quite selective so I think it’s a good deal.

They are also up to something on Instagram / Twitter which looks like shop fitting somewhere so expect they are going to have a bit of publicity drive which is seemingly close to our stocking of them which can only be positive.

As yet, we don’t have product sales numbers or forecasts (and let’s face it I don’t expect forecast sales of these products it’s too early) all we can do is wait for numbers (but if the stores keep increasing and we get carried to NYC / Miami with LeafyQuick) then it’s safe to say the products are doing well.

So that’s 1 reason why difficult to value. - We await the numbers.

With regards to indoor operations and seeds, clearly there is fantastic potential there also.

Despite the doubters the reports on seed shortages have been posted so I’m not going to throw wild speculative numbers about, needless to say the company have said targeted production numbers, and those articles had premium seed prices in them.

The seed operation of course is a few weeks additional growing after flowering. It’s not like we are spending millions drilling down to one formation to look for something, don’t find it then have to spend millions more.

The plants will grow, produce CBD, flower and then provide seeds. We could at anytime just stop them going to seed and harvest flower if we wished to do so.

Again. How to value that? Will we produce those numbers of seeds, will they test high quality enough and will they then sell at the premium price?

Given we will likely grow continuously (like a production line indoors) it should not take long to confirm the seeds numbers from plants with regular harvests of plants ongoing.

Outdoors: We have 16 acres now. Clearly at 100 the numbers increase a lot.

Sell flower/cbd/biomass etc from that and then you have some nice numbers, especially when confirm plans to plant extra the following year.

Wh

Continued:

Zoetic is going to be a vertically integrated CBD business, with fingers in all the pies, but concentrating on the aspects which ultimately will reap the biggest rewards.

Seeds and Genetics:

On average looking at 15m seeds a year from the indoor facility as it stands is a good number. As alluded to before, good independently verified seeds had fetched up to $1 earlier in the season, but then as the farmers got desperate the price escalated to $1.2 to $1.4 being paid.

Originally when we mentioned this number in the RNS I calculated based on 50c, but even said at 40c a seed thats a lot of money when multiplied by 15m a year.

Clearly achieving anything approaching the $ itself would be a significant income stream.

Bio-mass:

Along with the indoor seed generation then comes the "waste product" of the plant.

Previously when harvesting flower for District 8 from cannabis, this was destroyed, but now (as part of the business model to switch to hemp alongside the fact your products can be marketed all over the USA and ultimately internationally) we will use this to sell, or extract CBD from.

Outdoors:

40,000 plants previously touted with CBD going at $3 a gram wholesale but now fetching considerably more, and targetting plants capable of producing 30g a plant.

That simple calculation puts the plants at $3,600,000 worth of revenue right there, *if* all of it was turned into CBD and we sold that CBD at $3.

CBD has been going for up to $7 a gram recently, but more to the point, high-quality hemp flower and plant biomass has also been increasing significantly in value, again as alluded to in the last few RNS, and data out there in the real world backs this up.

So its likely (IMHO) a combination of direct and wholesale sales of flower, biomass, whole plants is likely to occur alongside any CBD that we look to produce ourselves, directly or via third-party partners.

Plenty of posters here with negative agendas will attack this post, but also remember.

Oil and gas are sold from East Denver because they are wanted and needed commodities.

Our growers are experienced growers, growing organically, using proven facilities and land.

Hemp plants, hemp flower, hemp biomass without flower, CBD, and seeds are all valuable and wanted commodities, they will sell at the market rates, which are going up not down in a growing industry.

Products have the potential to reach huge markets. Competitive markets? Yes, but in early enough, establish a quality brand with a proven organic product early on, and there is plenty of space for us to get in and market there.

Much of Zoetics success will depend on good marketing and strategy of the products, but they are not critical in year one, the seeds and plants will produce more than enough revenues to keep Zoetic (and HNR alongside ED revenues) in good stead and allow the 100-acre plans to grow next year.

Really not sure what all the playground banter is about on here, this site really has descended into a mess, but perhaps that is the idea of the posters, to drown out anything useful that is posted into oblivion.

Firstly, the numbers:

Projected plants from this year's outdoor growing, as per the last RNS, was 40,000 plants from 2 * 8-acre plots.

Projected indoor growing was no less than 3 seasons indoors in a year.

Taking the latter point into context, and with the fact that it adds a couple of weeks onto the growing time from flower to produce the seeds, then it is likely that 3 seasons in a year is a given, but it's likely to be more than 3 but perhaps less than 4.

So perhaps over the course of 2 years, we may get 7 seasons, or maybe over 3 years 10 seasons, but in 365 days it works out at 3.x seasons.

For the financial year of 2019-2020, then a sensible and conservative projection, based on no news on when planting indoors was completed, would, therefore, be to "bank" on two harvests being completed, and if we get the third in this first year then thats all well and good. If the third doesn't come in time for the financial year it would be due very close to the starting of the following year, and therefore it would be likely that 4 seasons in 2020-2021 would be expected indoors.

Products clearly are at an advanced stage, and it looks as if we can launch tinctures, chew pouches, smokes, and vapes this year in the US with the tinctures already also in the UK.

At what point the other items alluded to in Zoetic range also become available, is as yet to us mere mortals unknown.

I'm not going to do any calculations or projections on products as clearly it depends on the uptake, branding, etc, and consider this to be a large growth part of the Zoetic business, I've said this before and repeat it now again in a factual statement as opposed to being accused of something "rampy"

Seeds and plants.

Despite all the doom and gloom, make no mistake the CBD and hemp business is booming. There are numerous respected journals describing this "modern-day gold rush" and whilst some companies will flourish, others will get it woefully wrong.

Many farmers have tried this super cash crop and failed. Non-germinating seeds, non-feminised seed, no experience growing it, farming strains that have too high a THC content and crops being destroyed.

Many are spending fortunes on growing facilities and yet to make profits accordingly, but significantly increasing their market capital at the same time, and breaking even as they expand.

What is important to note for any new reader here is this Zoetic journey is not a wild ride into the unknown but a calculated and logical shift of direction given the chain of events with the Kansas gas discovery, the cannabis crop trial, and the lack of legalisation of cannabis itself, but hemp being given the green light to grow...

So another 100% factual posts from Fadec92 there.

It’s standard practice, the Wells were fine before, just operating on a reduced choke, and they will be fine after.

The gas lift is a standard operation and one that was applied on the original two wells.

A free carry is 0 capital cost being applied to the wells prior to production, i.e. they cost nothing to bring online. Meeting the 7.5% cost of the lift etc is not the end of the World.

It took a bit longer, and therefore as a result the revenues were down on those wells, along with offsetting the cost for the gas lift.

Installing these is standard practice, so they would have known they were coming.

However coupled with the ongoing reduced choke, it has meant the revenues in the month were lower than anticipated.

That’s it. Nothing more. Nothing less.

Now to the rest of the RNS, and where we are currently at, interesting someone mentioned CWEB have a look at their timelines on starting up...... 8 years since they looked at their genetics and 4 years as a company...

3.5 months in - Zoetic (NOW)

Growing in an indoor facility of 33,000 sq feet, and a proven growing facility.
Growing in our outdoor sections on proven farmland.
Production of our own smoking products.
Zoetic Branded CBD tinctures, already shipped internationally, sales will be in UK and US.
Same day delivery in Chicago and distribution statewide ability.
In discussions with a UK distributer to get into retail.
Working on genetics aspect and hemp seed operations.

Coming soon:
CBD chews, CBD vapes.
Other CBD products.

What Zoetic has achieved in this short timeframe is very impressive.

But the trolls will only focus on negatives.

The ED wells is a disappointment, without that it would have been an epic RNS.

As it is. It’s an RNS saying revenues were down a bit temporarily due to the workovers, and during the workover. Not before. Not after. During the elongated workover.

It’s funny how people wanted focus and delivery on one aspect of the business to get us going and financially independent and Zoetic is there for that.

Look at what that has already got going for it.

Look how long it took others to get to that stage.

Other hemp startups have and are securing money whilst they don’t even have a place to start growing.

We funded ours, and a few months later we have products available to ship across the states and internationally to the UK.

Max 19 I couldn't agree more.

Usual suspects jump on a few words from one line and make out the entire project is rubbish, when in fact it is clearly only not covered expenses during the workover, not during the entire period the wells have been online and is expected still to provide significant revenues afterwards.

Furthermore, they continue to ignore any other positive aspect of the RNS, and items from previous ones:

Namely:

At the beginning of June £100,000 ($127,000) at 1.27 FX was raised by a 10p subscription by the Schrader family (a distributor of our products) which would help offset this temporary drop in expected revenue as the wells were worked on for longer than expected. Note: They would have expected them to be worked on.

5,000,000 warrants were converted in June releasing £425,000 or $539,750 for Highlands (at FX 1.27)

Admittedly the 5,000,000 warrants would have been expected to be received by the end of the month, but still, it was money into the company nonetheless.

Initial revenues will now (albeit small initially) be received as the first batch of smokeable products have been distributed.

And then, of course, the huge news:

Zoetic's future expansion into sales into the UK and then Europe, something that was muted as a future revenue earner, and something Nick Tulloch had said would hope to achieve in the UK **by the end of the year**

And here we are in July with the Zoetic.com website shortly about to offer these products to buyers in the UK, and also in talks with a specialist distributor in the UK to sell into UK stores. Remember, this is Zoetic, this is the high-end, high-value product line of CBD products like the tinctures etc, and then can be followed by creams and lotions and the like.

On top of that, despite all the knocking from posters of us flogging CBD from a shed to 18 garages, we have also got a further distribution outlet with LeafyQuick who can provide same-day delivery of our Zoetic and Chill products in Chicago, and again ship nationally in the US.

Personally, my thoughts are the oil wells are a great source of revenue, but it is only a short matter of time before Zoetics sales can pick up especially with the UK market also being tapped. Of course, there is no guarantee these will fly off the shelves, but the high-end good quality stuff is being lapped up in general, and there is not enough supply to meet the demand, so they should do well.

And then there is the actual harvest of the first batch of crops themselves, which will also provide an additional source of income when completed, seeds, of course, will have $ received later in the financial year, but plant mass from indoor and of course the outdoor harvest will reap large rewards.

This is a huge RNS, the ED aspect is disappointing (temporarily) but the Zoetic progression is staggering.

I'm not fussed if people don't catch on to it now or realise the implications of the Zoetic UK announcement as yet,

Latest Share Chat

Member Info for HopefulDave

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Latest Share Chat

Member Info for HopefulDave

Followers

Following

Posts (Last 30 Days)

Posts (All Time)

Last Post

Member Since

Share Chat Post Distribution (Last 30 Days)

Activity Log (Last 30 Days)

Please enter at least 2 characters

No results found

Search results

Recently viewed

Trending