Member Info for HopefulDave

Mr D.T thanks. I pretty much only posted here before I invested a large chunk elsewhere. I then followed that company with as much if not more delving into that than I had with SXX initially, even to the extent of flying to Colorado to see the operations there for myself. There are a few underwater over there also, and as such spent more time on there than here, this descended into Brexit debates and the like, but had a ludicrous number of trolling on the board I was on to contend with! But still “popped in” here every now and again. The turn of events here is incredibly unfortunate for all, without that overspend I’m sure everything would have pretty much transpired as it should have. I always feel sorry for anyone who feels “trapped” “locked in” etc. Ideally nothing *invested* should be “for the race car, the flashy house next year etc” that’s more a trading mentality. If people needed the money before the mine was due to complete it was perhaps a riskier investment than they anticipated. It’s so easy to see the different approaches, stances, attitudes, egos and all sorts across these boards, and can attract unsavory characters on both sides of the fence. Back to here. The 13-20 expansion timelines moved out a bit, but if nothing is started late from here, and the machines arrive and do their thing (with contingency) all will be good in time. They are incentivized to get lower quicker and tunnel faster, but also safely and not putting things at risk. Such is the nature of the contracts. Once those bonds are done finance doubters can do one, then it’s back to good old time passing. Nobody should wish time away. I predict with every 50 or so meters we go down and every mile or so we tunnel, adding a few pence on average to the SP each time the events occur, alongside a few less hairs on my head, and more of those that are left going grey.. Dividends may be a little smaller in the end, but they still get closer every day, and with each month passing, and the SP if it is held back by shorters or whatever, is an opportunity to pick up a few more lower down, and ultimately on those, a better return over time. We are still building a mine, celebrate that is my two cents, and as soon as those bonds are sold... We can all get back to watching it build. In awe and anticipation.

Why everyone is peed off at the government for the equity raise and the SP? A convenient deflection. The IUK guarantee was sought to guarantee whatever we couldn’t raise ourselves and no more. It was sought to ensure the mine would get built. As it stands we need $500m of very well paid interest rate bonds to sell which I’m sure won’t be an issue to sell and then ST2 is done. So effectively, it was never needed... As this privately owned enterprise (as in not state owned but owned by you and I and the IIs) ***was capable of funding itself*** Make NO mistakes. Our original $3bn sought would have almost certainly been fine and dandy, and we would have been well on our way with very little equity if any at ST2. This raise was due to a massive overspend. Was that CF fault? The governments fault? Neither really. The DFS and budget set out and got it very wrong on the tunnel, when pain/gain contracts were sought they wouldn’t touch it without making expensive changes. Bad advise at that time probably cost everyone the most. At the end of the day..... The company is still sound, and if the mine is completed everyone will be in profit, jobs will be there and the economy will get its exports and tax boosts also. Just a waiting game (as it always was) for maximum gains, unless you are trading in and out. I’ll certainly add more into this at these levels, my other investment I have plenty in, so here will get the the “infamous Chesh style monthly subs” aka pension contributions for next few months at least it seems.

OSG1. I don’t have time to crunch numbers and as yet figures are not on COGCC. As no new numbers are released one assumes the choke remained the same and True are maintaining the conservative (better in the long run) revenues for the life of the wells.

Ultimately this will lead to more oil and gas recovered, but over time. The net effect is less spectacular headline figures initially, and what should be a considerably slower decline rate.

At the end of the day, over the course of a year which is when we need the revenue it will smooth out, less of a peak now, but a smoother and less sharp decline is what we should expect.

Too early to crunch the numbers to be able to post we will get X or Y, but from the initial numbers and with the choke setting as it was, the company said it was fine, and have continued that in all future news releases, and not been informed anything has changed, so one assumes a slower decline rate is what we will see from before, time will tell.

It’s safe to say it will decline though, so you most certainly won’t be able to simply multiply the initial numbers by 12!

But saying cause it went to 17p last time we did a placing at 20p...

We were on aim and only mostly bucket shop II’s could buy the shares to flip.
We were a field with a few drilled holes in it.
We had a further $3bn to raise (at the time turned out to be more!)
Only had a few Mtpa in TorP sales.
We had building contracts to sign.

Here we are in the FTSE250.
Many funds and IIs can buy and hold as not aim and FTSE250.
We are 2.5 years closer to building the mine.
We have a huge credit facility approved and waiting (pending $500m bonds)
We own 30% of our Brazilian distributer Cibra.
1st TBM is launched and burrowing.
1st VSM is sinking the 3rd shaft/TBM launch shaft.
PIs have sat on the sideline waiting for this.
IIs and funds have reduced or not bought waiting for this.

Soaking up billions of shares on aim is 1 thing.

A project as big as this, almost 100% financed..

It’s a very different scenario to last time, even though there is a very familiar feeling to it right now.

It may drop again. But don’t think just as it did last time it will this time.. nothing is certain, and plenty of chunky trades and buying going on to take it back to 17p today. I doubt all of those trades at some of those sizes are “stupid pi’s buying above 15p”...

OSG1

You really should not discuss things you don’t understand, nor begin to assume you know the ins and outs of another’s trading accounts.

I’m smart enough to move things about where required. Take CGT hits (implying I was already in profit...) moving money into pensions to get back my stolen tax allowance (a further clue there)

If you turn off the filtered ones selective memory you will recall already what I said about picking up shares at 10.x here.

Any people who notice the smallest of things would also note the premium status of my membership here, and the timing of that strangely coinciding with a few days before SXX’s deadline to finance.

A) did I sign up just for a laugh.
B) did I sign up to maybe do something else

Don’t worry about SXX. My investment there is now at a lower average than it was before, and that is lower than the price the convertible bonds have per share now. It also seeded my initial free investment in here for those that recall.

Both here and there are both fantastically priced now. There will have some chunky placing share overhang, like we have a share overhang here. Ours is far smaller and already eaten into a fair chunk of with the trading since then, but they are a different animal and funds and IIs will nibble their way through the shares in time.

They have a clock ticking on building the mine. Each day the shafts sink lower and tunnel gets longer the realistic NPV increase there. As it passes through various layers of rock and the aquifers, it will de-risk further. There is always a much bigger angle to a company than purely the SP at any given time.

They have also managed to secure $2bn in debt with a further $500m of non-convertible bonds being worked on.

$2bn debt for a fertilizer mine....I’m more than comfortable still with my position both here and there, and my realistic aims for returns both here and there and the timelines in which they have to deliver them.

SXX May have 7bn shares now, and some convertible bonds to go on top but they have sales of 10Mtpa and revenues of $1.5bn lined up pending that building milestone. They also have expansion capability to 13Mtpa then 20Mtpa beyond that..

If it ends up at 9bn odd shares and they go to 20Mtpa. You are still looking at the possibility of dividends exceeding the placing price as it stands...

HNR have ~90,000 plants to grow this year, then up to 250,000 plants next year, amongst other things to develop. If they hit the grow targets, and get the growth CBD boosts with gas, and wholesale prices....

Both will be fine, as will I.

Busy day.

Don't forget the deal it has with Cibra, it owns 30% of the distributor in Brazil....

Who's to say once it gets a little bigger, it doesn't do more distribution itself?

I’ve done better than that BH I’ve simply filtered it!

As some have said. Pointless engaging as just lies and twists whatever is posted. Not difficult to work out it’s a troll. So
simply filtered it.

Again JJAL. You fail to put any reasoned analysis behind your blatantly negative approach.

Perhaps you could enlighten us with the direct comparison between the complexity and therefore the time it takes to negotiate the sales of a highly specialized and unique pure N2 gas stream of which only a handful of multi-billion dollar establishments/facilities could process into liquid N2...

And then compare that to a pure organic CBD product, which when produced can easily be transported to wherever it is needed and is currently being used in more industries and products every day ranging from kitty treats, to cosmetic creams, to coffee!!

JJAL: “This new adventure is a unknown and yet again RP,s still not announced any sales figures or contracts.“

Give them a chance!!

The crop is being planted now. - What *forward sales or contracts* for CBD do you want to see before we have actually produced the samples, using the process we are going to extract it?

The company had the clean THC free facility since around about the 1st April.

Before growing their first plants they have procured the same organic strains they will be growing, and are currently making some products with these because that’s what they were setup to do before.

The “no sales agreed” as you say is again another poorly argued and non justified point.

The first “no sale agreed” products that we actually have agreed to place into 18 initial stores as it is, and are being made right now.

Again. This is 25 odd days after having a clean facility.

Somewhere they will be designing and making packaging for these, then the smokes etc are due to go to stores is it next week or week after? Can’t recall precise details from RNS.

It’s an initial distribution deal as it’s a “new product, and a “new brand” - What does the packet look like? What promotional things go with it? How well does it sell?

As I said establishing a brand takes time but they already have a distribution deal which can expand well beyond the 18 stores for smokes and other products.

It would be corporately irresponsible for us to make absolutely bucket loads of these initially, and again the same would be said of someone saying “yeah I’ll take these and place them in hundreds of stores” on the very first day we provide them.

We can ramp up production and source more hemp plants until we have our own if required.

You slaughter me for having an overly optimistic view and I’ve been saying in all my recent posts, this new product venture isn’t guaranteed, it takes time to get things going etc.

But you are slaughtering a company for not forward selling something it does not yet have, and will be producing the first products of each type over the next few weeks, and months accordingly as more products are made.

Being negative is one thing. But slamming the company for not forward selling things they don’t yet have?! And you say you are invested?!

The CBD we produce using our method will be sampled and tested and then you could expect them to be able to get concrete sales based on the produce. They target $3g, it could be more or could be less based on the quality.

They have organically grown produce to use now, and time to setup and perfect the CBD process before our crops are ready. But give them a little time and the new staff some credit?

So just to behave like you for a second and twist things that are posted...

You basically are admitting to being a paid troll then?

:)

Indeed BH. I said all along I thought we would use the shares on a strategic partnership, but wasn’t expecting quite what unfolded. I thought would go to an O&G / Kansas or Epiphany development, if at all.

As time progresses and more information comes to light, I see more reasons why this has occurred, and it makes more sense the further you delve.

Of course nothing is a given, but assuming very similar plants still manage to grow where they have grown plants before, and then the CBD produced is and goes at wholesale prices indicated (or even a bit lower) we will be in a very good place.

Hemp is already grown outdoors in the locations we plan to grow in, that aspect (growing) is well proven.

Not sure when the machinery for CBD production will be completely setup (assuming not in now) and when we will begin to make CBD from plants procured and no doubt identical to those we are cloning and growing from, but that will be a pivotal moment.

As soon as we have produce of any kind, then that can go out as samples, or in some cases finished products already, with smokeable products first I believe as per RNS, then we will begin to get an idea of just how successful it can be.

CBD production and wholesale sales will be great.

Any successful retail or direct product sales will of course make a huge difference to revenue numbers.

Brand establishment can take time, some products might not sell, others may be very successful, you just don’t know, there are no guarantees, but it’s certainly a rapidly growing market, which helps as means there are gaps in which to exploit / fill.

As per the articles in the Daily Mail recently, a fair few companies are listing in the UK and trying to startup / move into this space, and we have a terrific head start over those on the one hand, but then competing with some existing (and very experienced) players on the other.

Where we compete against existing players, we are organic and sustainably sourced / growing, which always helps, and the market for products seems to be there, but it’s still competing against some established players.

As for the other startups alluded to in the DM article, compared to them, we have a facility already proven for indoor growing, we have experienced staff for growing and are also well connected in the industry and they are already on-boarded.

Sensibly, we already have sourced organic plants to clone and grow (or growing) along with fully grown ones in which to make initial products.

Ie. Before some of these startups even have somewhere to grow sorted out, our hemp is being planted now, and we are already making products, the first of which should hit the initial stores soon.

So, again, no guarantees, never are, but based on above, I’m pleased at the “acquisition”.

PS I don’t work for HNR! At the moment I work in IT for a bank, eventually dividends I hope will change that!

I was asked why I thought the events had unfolded as they have.

I basically said:

*if* growing targets are achieved.
*if* prices as per RNS are achieved.
*If* the products sell.
And of course there are no guarantees.

*If those things happen and therefore the *if* the sales are as per RNS then those would be the sales numbers, and it’s pretty obvious *if* those revenues were inbound we would have an SP that reflected that income.

I’m not sure why that isn’t a reasonable and balanced post.

*If* you were invested you would see that.

Right now we have ED paying the bills for HNR and what is a funded CBD business also until the end of this year, where it is targeted to be in profit.

*If* the CBD operation fails to break even and *if* we didn’t sell any N2, progress ED into more wells, or progress anything with Epiphany then yes it’s likely more money would be required.

However.

As pointed out before, assuming the plants grow, even at half the number anticipated this year, you more than break even.

Even if you only get half the indicative wholesale pricing, *AND* half the crop harvest, it still pays back on CBD alone from this years forecasted income enough to break even. That’s without a single other product sold.

So yes I’m putting a positive outlook on this, based on the above I see no reason why not to.

This operation is very much in our own hands.

MC. My two cents I posted similar before, just my opinion mind.

District 8 was producing cannabis and their pre-roll products with cannabis itself still restricted to sales in Colorado.

They only used the flower for the pre-rolls and to sell that wholesale, the remainder of the plant was destroyed.

The gas mix trial enabled them to hopefully produce more flower and more product in the same growing footprint.

I personally think that the results took them by surprise to a degree, the whole plant increased not just the flower, the THC count did not increase significantly.

This, combined with the farm bill opened up a bigger opportunity.

What if used the entire plant?
Why not make smokes etc from the flower with ~30% more yield, even if it goes at 25-30% less price than pre-rolled cannabis?
You have a market that is now US and ultimately international.
You can now use the previously disposed of plant mass to make CBD, and therefore CBD based products.
Start to crunch the numbers and you can see that the CBD alone at wholesale prices if hit 2020 targets = 250k plants *
30g * $3 and therefore outdoors = $22.5m revenues.
Add the predicted indoor growing revenues of ~$1.44m from CBD =$23.94m. Then add any branded sales products / products made by the indoor flower on top..

We enabled the means to raise the money, provide the fertilizer, and the previous D8 team provide the facilities and the growing experience.

So what’s in it for them? Why not do it alone?

They have got 5,000,000 warrants + 12.9m shares in HNR and therefore a stake in all our projects, which now includes of course Zoetic Organics.
We have a second revenue stream capable of starting up, generating large revenues relatively quickly, and a big showcase for the gas mix. The revenues this can generate can clearly further help expand our other business areas and generate further profits.

Trevor has an oil and gas background along with farming and District 8. Clearly he was happy with the deal, and believes in the value of the gas itself.

As I said before, I think it’s a great deal for Trevor and other previous D8 owners, and HNR as it was.

As I also said. The only ones to get a “temporary bad deal” were existing shareholders who had the placing.

But have to remember. The SP had dropped to ~11p. HNR needed a second project to be self sustaining and generate revenues to be able to expand. N2 sales hadn’t arrived. ED covers costs but not expansion funds, as still 8 wells. Without the extra revenue stream we would not really recover above 11p.

I believe ultimately it will prove to be a fantastic deal for all.

Let’s face it. With hindsight. If someone said. 11p now,~8.5p for a month, then steady climb back into 20’s / 30’s you’d bite arm off for that. If this venture goes well and hits the revenue $’s why not that and more?

Trillsg,

As per the RNS.

With this in mind, Highlands will enter into an agreement to lease an extensive organic growing facility from a company which has now ceased its cannabis operations. The management team have previously operated that facility, bringing with them all the skills and abilities for Zoetic Organics to commence operations immediately.

Based on the above I’d say we leased it directly from District 8.

BH,

When visited DeBeque Trevor was talking about the possibility of turning gas off at the flowering stage as this might “shock” the plants into more growth, I think they do something similar with lighting / turning lights off at a specific time, but can’t recall specifics on that.

I believe at the end of the day they went for gas on the whole time, after all it fertilizes the plant and if it’s still growing / doing stuff right until it’s almost picked that makes sense I guess?

With regards to the volume of gas I guess it would depend on the flow rate they ended up keeping it on, and also how long the plants take to grow. We may have a few different varieties as opposed to just one, and not sure if the growing cycle might be different on them.

I don’t know how much pressure the PSA deals with / flows at / how much is siphoned through it etc, but given the fundraise was to cover all of this stuff including the operational costs of it, one assumes not that long.

Perhaps we will get more details on the Zoetic site when goes live. It would be good to have a video / process “how it’s made” style video - maybe should get onto them and ask if how it’s made want to do a CBD oil production section lol.

To all intensive purposes that is what it looks like, aside from the bank accounts, products, branding, company name etc.

To be a new organic grower of hemp, and selling CBD and products derived from them, we have “taken over” all the good bits, the staff, the facilities, and the experience, but nothing else.

So it is a clean new company, that hasn’t taken over the old company, just effectively cherry picked the good bits and taken them, and never owned or touched what it’s “left behind.”

Not sure there if there is an actual business term for it as such. It’s not asset stripping as never bought the old assets to sell them, and it’s not a takeover as such either, if you get my drift?!

District 8 used an indoor growing facility.
It had staff with experience in growing in that facility and making products (smokeable) albeit with the cannabis / marijuana flower, they used that flower and destroyed the plants.
They used our gas mix in a crop trial.
Crop trial produced ~30% yield increase in both the flower and the plant itself.

The deal:

We basically now have created our own company Zoetic Organics.
It will grow hemp only.
It will use the flower to make smokeable products etc.
it can use the rest of the plant to make CBD and then CBD based products.
We have taken over the lease of the entire indoor growing facility.
We have further secured additional external land in which to grow outdoors.
All the staff from District 8 now work for Zoetic.
That includes the former CEO and co-owner of District 8.
We can leverage the equipment used before to make new smokeable products.
We bought hemp plants that were fully grown in which to start making those products and should be selling them imminently.
I believe we are actively cloning and planting our own hemp and have been for a while.
The deal / placing also provided money for truck / bigger gas transport / storage and fit out of said gas in which to use on all the indoor plants (bar a small demo patch for control and to show difference between gas and non gas for any prospective purchases of the gas mix)
Also plan to use gas mix outdoors I believe.

There are various legalities and significant differences between Hemp production and D8’s production. I assume (aside from branding) those legalities and listing of a CBD company not a cannabis etc are part of the reason it’s not “a takeover” as such.

We have nothing to do with cannabis, but as much as it’s “a new startup” it comes with all the facilities and experience that D8 has, without any of the legal baggage of a takeover / legalities of a cannabis producer.

In short: We are a clean new organic hemp grower with experience.

Can you not read JJAL?

“17HopfulDave, Now I do question your integrity, so basically you’re saying you would swerve the questions. Are you sure you don’t work directly for HNR because that’s what EB,s very good at.”

I did not say I’d swerve any questions.

I said what I would do if someone mailed me questioning my integrity. Simple. That was it.

The scenarios were, bin it, bin it, or respond saying apologize and ask questions and I’ll do my best to answer them.

Now given this is a public forum, and others who don’t know personally here are effectively cc’d by the nature of this being a public forum.

If you apologize. I’ll answer the question.

LOL. Not fallen into any trap.

At no point did you say you sent a reasonable mail. You posted here you sent a mail to them questioning their integrity That was it, and now your trying to make out you actually sent a reasonable email?

If anything I think your flip flopping more than JJAL!!