Member Info for HopefulDave

this is a public forum.

A mail sent to me personally questioning my integrity would go in the bin and I would not bother answering it.

If others were cc’d on it and they knew me, I wouldn’t bother answering it. I wouldn’t need to. Bin

If others were cc’d on it who I didn’t know personally I would simply respond. “When I have your apology and reasonable question(s) I will do my best to answer them.”

If you must know... but then. That’s because I’m a decent person.

Once again. Nice of you to acknowledge the positives and respond sensibly, oh wait.. of course you didn’t..

Your selective memory is as good as your selective vision JJAL.

I’ve questioned a fair few things, you always seem to forget that.

Nobody is buying: There was a 100,000 buy at 3 ish, which seemed to more than offset the trickle of trades below the placing price that you were so keen on pointing out, and that small ~780,000 one last week conveniently forgotten about already.

I’ve never questioned the integrity of the BOD as I have no need to, that goes way too far IMHO.

The only “agenda” I have here is to see the company I’ve invested in succeed.

Your agenda is clearly something else and everybody can see that, there is no need to question that for anyone.

I think you went wrong with:

Mailed someone and questioned their integrity and expected a response?

Apologies for not posting “we are doomed” so you can give it 3 or 4 thumbs up JJAL.

Can’t even make a jovial comment that clearly we haven’t turned out the lights and a post pleased that our current main source of income will be giving us a bit more headroom with the current oil price without being accused of “posting shiiite”

Once again. Apologies for posting something with a trivial amount of positivity in it.

If you’d prefer, I’ll try and catch some wasps from my garden and post them to you so you can chew on them, would that help?

No they have turned them on the plants they are growing.

As WTI breaks through $66.25

Laughable.

Just need some news.

Tick tock.

Hemp is fairly sturdy I think. Not sure once a plant has been cloned, how long it would be before it would get planted outdoors, but that’s what Trevor and co are for!

But alongside the 3 big rooms full of growing plants you could see from our twitter footage we took, don’t forget there was also another big room where clearly that’s where they started the plants on their respective journeys.

I’d imagine they are cloned in there, started off there, then moved wherever indoors and now outdoors as appropriate.

Blue, this was prior to the announcement that we would indeed have products in stores before our own harvest.

I suggested that it was quite a lot of money for soil and just cloning plants.

I then said, good business sense would not be having a team of people who made smokeable products before twiddling thumbs for x months until we have our own harvest, and we have a brand to build. Indeed the company then confirmed we had indeed planned to put products in stores prior to our own harvest.

This would make sense as it would enable the team that picked flower and made smokes to continue doing so. It would also have, once the machinery arrived, then enabled them to start making CBD itself, and then provide samples of what they would produce to enable sales agreements of that product, or even looking to start making any of the other planned CBD products.

Basically. Rather than harvesting our own crop later and then running around like mad trying to get everything up and running, it can all be set ready for the harvest, whilst we already have products out there and start brand building / sales.

I don’t know for a fact but my current assumption would be:

They bought fully grown plants in which to make initial products with, and decide which ones produced the best results.

They would have then sourced the plants in which to clone from and begin growing from scratch and using the gas mix.

I don’t think they would have any half grown plants and be growing them to completion, but don’t know, I would have thought it would have been a mix of fully grown plants in which to process into products, and then clone the plants and get planting with our own crop from scratch using the gas mix.

Not sure if too early for outdoor planting, imagine indoor crop is first thing to get cloned and growing, and then begin to plant outdoors when it’s the right time. Clearly can be preparing the outdoor area simultaneously, and hopefully be ready to go when it’s planting season (if not already)

and a 1.57m buy went through mins ago..

Just some people trading again and making a killing!

Maybe the 500,000 seller is the one with the buy order for 1,000,000 shares just below the current SP!

Don’t start counting them Fadec!

That leads to the dark side.

Wasn’t me!

What is BH starting? A 781,325 share buy just got posted from14:05

“'There are many companies that have no assets – the only asset they have is a licence to cultivate cannabis. They haven't constructed greenhouses or production facilities yet and they're getting very high values.”

And here we are with our proven indoor growing facility, team already more than capable of growing this, some pre-bought plants in which we are going to grow ours from the same genetics and making products already, some to be ready to go to stores at end of the month.

Nice.

JJAL, my figures were there to suggest how easy it would be to cover the running costs even with lower than suggested crop yields, and with lower than wholesale pricing achieved, alongside zero returns from the branded products to retail or wholesale sales..

If you were to take what they have targeted for this year 2019-2020 from this project alone then you are looking at just under $6m in CBD wholesale sales from the 50k outdoor and 40k indoor plants and no uplift from the indoor flower or additional products taken into consideration.

Of course, during this year (2019-2020) we have that fully funded ED revenue, so anything above the running costs from the Zoetic operation is profit / available to be used for expansion.

Going into 2020-2021 if they hit that 100 acres outdoor target then you are in the realms of $24m in wholesale CBD alone.

But again, to not go full on, if we only managed an additional 20 acres alongside the initial 20 acres we plant this year, it would be another ~$5m in wholesale CBD production compared to this projected year. That would, therefore, make around ~$11m from the hemp operation and CBD wholesale alone achievable in 2020-2021.

Remember the above includes no uplift from any branded products, no pre-roll numbers, no direct flower sale etc..

ED will still chug away providing revenues, they may not cover expenses by themselves as they decline in later years but will provide a healthy income, and ultimately would get re-frakked at some point.

Anything above break-even numbers for Zoetic (which are quite low as highlighted before) and the $ starts to add up quite quickly.

Hence why I'm very optimistic that this, as fully funded this year and with the numbers they have mentioned, should more than comfortably cover us this year and onwards, and hopefully give us a healthy profit also.

Anything else from any other play would be a lovely bonus at this point in time, but even if all other projects just stalled indefinitely, the numbers for this hemp operation look like a compelling enough business case to invest.

Facilitated, staffed, and funded, although a "new business" it already has a lot of experience in the field they are in.

And I dare say as more data is released on the progress of Zoetic, people will start to realise this. Until then sit back and let the placing churn do its thing.

Tis beer o'clock and time to chill.

In response to JJALs post on how much needs to be sold and operational costs, some perspective.

And yes. I’m fully aware that we have not as yet released an RNS saying we have a CBD agreed wholesale purchaser lined up. We have only had the facility since beginning of April and it was going to be at the end of this month / beginning of next where products from bought hemp plants would be processed into some products and available to sell.

* RNS: The anticipated costs to run the operation year 1 as per RNS are $1.3m
* IMHO: Trevor has grown hemp before and the facility is well known so these should be costed fairly accurately.
* RNS: We are already funded for the above from the fundraise.

* RNS: Based in anticipated wholesale pricing of $3 for CBD
* RNS: Based on anticipated targeted numbers of 50k outdoor and 40k indoor plants this year.
* RNS: Based on anticipated yield of 30g CBD outdoor and 12g CBD indoor.
* RNS: + Conversation with Trevor, the flower from indoor is to be used for products not CBD

So. From outdoors: We need 14,444 plants from our anticipated crop of 50,000 in 2019 to meet $1.3m cost.
Less than a third of the crop, but as JJAL loves a disaster let’s say the entire outdoor crop is spoiled.
We need 36,111 of our indoor plants (the plant) from our anticipated crop of 40,000 in 2019 to meet $1.3m

The flower from the inside crop, used to make other products (smokeables etc) is a bonus.

If the brand fails to take off, you could use lots of that flower to increase CBD production (after all it contains ~20% of the CBD you can get from an overall plant)

So we could fail our entire outdoor harvest. We could fail to have our brand take off, and still produce a premium CBD product for wholesale.

Assuming the harvest is good, 2/3rds of the outdoor crop at $1.5 a g would cover the $1.3m costs.

Next year they plan more crops so at that point costs would increase but so would the returns.

One assumes that’s why they are confident the operation will be profitable this year.

Nothing rampy about this. Just looking at the figures provided and highlighting with those in mind even with a significantly reduced crop harvest or pricing this should still cover its costs comfortably.

We already have the funds for year 1 from the fundraise.

As said we haven’t announced that sales of CBD yet, but then the facility has only been handed over for a week or so ago and combined with getting it ready to grow, putting the machinery in to create the CBD it’s hardly surprising.

The company is already working on its branded products where it can of course use the plants it bought and would be cloning and growing from that genetic base.

Personally, aside from the placing price, which will churn and clear, I see the above as a very valid 2nd revenue stream to come, this year.

Just my two cents worth.

I’m sure every company in the land promises shareholder value, but when a recession hits and all shares go down are they then all accountable in the same way?

Some events have been of the companies making, other external factors and events, then combined with how the company has reacted to them has made the SP what it is today.

Obviosuly the current SP is a disappointment to all.

As it stands everybody wanted focus. A plan. A way forward. A second revenue generating stream.

It could have been N2 - hasn’t happened yet.

It could have been some aspects of WD - 112 put an end to that, but there are still aspects of it that could be monitized.

It could have been more wells in ED, but delays (drought and pipeline) made that take longer and only recently got that going, so additional moves there are behind by x months also.

An opportunity arose to monetize our fertilizer gas in a mutually beneficial operation that when put together enables us to generate decent revenue and profitability this year.

The placing at 8.5p clearly was a slap in the face to current investors, but it’s a temporary blip whilst the shares churn.

With 500,000 and 200,000 trades showing it won’t be long before that churn is done.

If it enables the funded second revenue stream to come online, profitability and a showroom for our gas mix then it is a better outcome than selling to D8 a small amount of gas and hoping others come along wanting it.

We may well get ED wells (extra) or N2 anytime soon, but there is NO guarantee of that.

So in the meantime the company moved quickly to ensure it got this opportunity and the ability to plant this year outdoors, as well as get indoor grows going and get a profitable business going this year.

Shareholder value now? Obviosuly not for anyone who didn’t buy in the 8.5p placing, but for those who held before, who could have sold their holdings at the price we have been at during the last year? Not many.

But now, with this short term pain, there is a path that can deliver that. In that we have a fully funded business to work with, and revenues from ED to keep the lights on.

Yes the SP is pants, but why endlessly harp on negatively about it? If you genuinely hold any shares at least acknowledge for a second that this is a valid path out of where the SP had got to and a road to recovery and profitability.

You constantly accuse me of endless ramping, yet this is another post of a number of posts where I’m acknowledging events haven’t all gone to plan, and that some decisions made by the BOD haven’t been the best.

That said. At this time the company is now on a road to recovery, and it’s within our own hands to deliver that.

It’s therefore now in the best position it’s ever been in, we just need to clear the placing overhang and deliver Zoetic (or other positive) news.

Indeed, said HopefulDaffyd, whatever I held today went up, although one appeared to get too excited and couldn’t stay the distance, it was still great sxx.

I do hope not. Thought I was the only gay in this village.

Might be too late for you JJAL.

Seeing as I wanted dividends from my two main investments staggered over the early to mid 2020's I think both still are on track for that...