Ann: Roto-Gro Launches Growing Management Services, page-5

Haven't posted for a while & a bit going on

Firstly re SorrynotOz's theory
Yes I agree this is about to explode & get very big, reward for our patience can not be far away. I think the price action until today was as a result of the general increase in the Australian MM sector after the government export announcement, along with anticipation of long overdue sales announcements.
RGI have good connections in Canada where there are publically listed companies with market caps over $1b. This includes smaller Canadian companies who do business in the US such as MPX. Amfil are concentrating on the American market which is more fragmented and doesn't have these large publically listed companies (because its illegal federally & they can't list). RGI is a specialist in MM cultivating, Amfil have only just entered this space with most of their business based on gaming coffee shops. If Amfil was only Gro3 it might make sense to have equity in it, however they are mainly into gaming coffee shops. I think the present agreement they have is the best setup & they'll keep it as is. Both are specialists in their fields, a great partnership.

Charting wise, I always look for an uptrend before buying a stock, RGI certainly has that, I think the company is too young to read too much into supports/resistance etc.

Re netd's Q, good point, one of my initial concerns was the lack of concrete patents. The prospectus basically indicated we had none at all, just a few applications. This latest announcement re patents is actually quite encouraging. RGI didn't invent the rotary method of gardening so can't patent that, however they have perfected it over the last 15 years or so, so they can patent those improvements. Most of the parts come from China and are flat packed in Canada (think ikea) for shipment to their customers. So costs are already very low, it would be very hard for a new entrant to undercut & when the value of 1 crop is greater than the cost of the machine, why would anyone take a risk buying an untested product over one with 15 years R&D not to mention the software developed over as many years specific to the different strains/crops.

This Growing management Services was mentioned at the AGM as I have previously posted. They called it Growing Management Fees (GMF) which was a gross percentage of the crop's value in exchange for managing the cultivation. Remember most of the machines are fully automated & can be controlled while you're sitting on the beach. So not only do they get to sell the machines, they also take a percentage of the gross sales, which can be huge with cannabis. This is not a new idea, the Prospectus P43-4 introduces their intention to provide growing/management services at a flat fee, rather than the AGM mentioned % of gross sales fee. I think we'll hear more about this very shortly in conjunction with some much overdue sales announcements. Maybe this is what has delayed the sales announcements, doing one big deal for selling the machines & managing them. Doubt they announced this service if they don't have some contracts lined up.