Where do I start?
Firstly thanks to Adam Clode for putting up with me today and answering my multitude of questions. Secondly my thanks to the board and management of the company for all their efforts and time they are putting in on shareholders behalf.
Let's just say they would have finished a lot earlier if I hadn't been there.
I will try and provide as much information as I can, note this is my take on what was said (and in some cases not said), so don't take my interpretation/understanding as gospel, as always do your own research.
Supra THC:
Is still on the go, Valens are supportive. The problem lies with HC and regulations that infer that a licence address cannot be changed. Hence the struggle to try and transfer the licence from British Columbia to Ontario where RGI are located. Can't RGI just produce in BC? Technically yes but it is far from ideal, think of Perth and Melbourne, opposite sides of the country, plus other things such as the facility in BC would not suit RGI's designs.
CanniFarms:
Lodged their evidence with HC on 27/10/19, there is some toing and froing until HC is fully satisfied and prepared to issue the licence, same with any application. Currently CanniFarms has a list of things to rectify, only minor things that are easily done so once completed they will lodge that evidence and as the list are for minor things they aren't expecting any further items to rectify. Miracle Valley, from final evidence got their licence in 6 weeks, Oakum in only 2 weeks, so hopefully not far away, before Christmas or early in the new year. Aiming for fitting out first RGI units in March/April 2020 but of course relies on a range of factors. No upfront cash from CanniFarms for the growing units, will most likely be a loan owed to RGI.
CanniFarm's 49% owners own the building which will be leased to CanniFarms. CanniFarms itself, besides the building and two grow rooms pretty much has nothing else in terms of assets/liabilities, hence RGI will most likely supply the equipment via a loan account. Remember that pay back for the units is first harvest.
Freshero:
Pretty much is a goer, just some finer details to work out. Main sticking point at the moment is Freshero trying to get recognition as an organic grower as that is worth more. Sticking point is that to be recognised as organic in Australia the plants need to be in contact with the ground, growing in soil from the ground in an artificial growing facility is a problem. This does not apply in other jurisdictions. Freshero are pushing ahead and hopeful for a response before Christmas, if approved it will be full steam ahead, if not or no response then they will go ahead with a smaller set up. Allows them to expand it later if approval is given down the track. Freshero is very happy with the 7 foot fully automated growing units (patent application for the 7 foot units is being prepared so no pictures, video, etc of those units).
Freshero's exclusive agreement with RGI relates them Freshero only using RGI equipment, not RGI selling any rights for Freshero to have exclusivity to RGI equipment/technology in relation to certain locations or products.
Miracle Valley/Oakum:
Both really pleased with the results they are getting, even MV which chose not to go for the full design set up with the fertigation unit, iGrow software, etc. Retrofitting is or will occur at MV (I caught a couple of conflicting comments so not sure if it definitely is happening or RGI are encouraging/pushing for it).
Others:
They have Siksika(sp?)'s order, the non binding RGS agreement plus working on others with the sounds of three that are far advanced. Gibio? Yeah, nah. Nothing in the presentation and I wouldn't bet on much happening on that front.
Future:
RGI are focussed on being a third party supplier with sales from the equipment, facility design and growing knowhow along with profit sharing. Don't expect a heap of RGI owned facilities popping up everywhere. RGI is keen to have a fully commercial facility of their own, hence the CanniFarm arrangement. It would be a revenue stream, proof for potential buyers to see the benefits of the RGI growing knowhow and capabilities and allows RGI to see firsthand in a commercial environment what works and what doesn't. Note that it will be a fully commercial operation, they will still have their testing facility for trialling and testing improvements.
So, revenue coming in from equipment sales, and later in 2020 recurring revenue through profit sharing and CanniFarms). RGI are not expecting to need any more cash but if needed one possibility would be a debt facility.
I am late to do other stuff so will leave it at that for now. I will try and provide more information later tonight, more so on the tech side.
Again, note this is my take on what was said (and in some cases not said), so as always do your own research.
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