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22.0¢ roto-gro international limited

I certainly agree that RGI seem a little slack with announcing...

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Spec2Acc

168 Posts.

22/11/17

11:34

Post #: 29014445
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Originally posted by Red Baron ↑

Had another listen to the 30 minute presention by MPX's CEO Scott Boyes at the New West Summit. It works best if you listen to it watching the powerpoint slides available on their website. You must also remember this is dated 14th October, 5 weeks ago and they have a very demanding schedule.

One thing that stands out is that Scott as an ex banker, looks at things from the eyes of an accountant not a cultivator. He knows competition will drive prices down & wants the most cost efficient operation possible. He goes on to talk about the incredible yields it gives per sq ft, that it uses one third the labour & half the power of other systems. When he talks about the Roto-Gro system, it's almost as if he is the RGI CEO, not the CEO of a potential customer!

Why wasn't our CEO at this conference? In fact towards the end when answering a question as to why there haven't been more roto-gro sales, he basically says RGI's sales team needs a rocket up their ar** in a diplomatic way. One of the criticisms I've had is they don't promote the company. For example Amfil announced the 100 unit sale committment over 2 months before RGI announced it. I brought it to peoples attention back then, not many people read this forum because the share price didn't rise until RGI announced it. Now we have Amfil saying they have a committment for a further 200 odd units, but nothing from RGI. Any other company would announce it as a letter of Intent. (such as MPX's LOI to acquire Maryland). RGI hasn't mentioned MPX at all - not a word! but I digress.

Scott also talks about the biggest challenge in their Nevada & Arizona operations being the availability of supply. "We just don't have enough flowers & trim to meet market demand"
You don't have to be a rocket scientist to work out what system will increase their yield in a fixed space!
In fact Scott says: "I think a facility with 2-300 of those machines will produce a lot of flower on a pretty small footprint"

He mentioned he is convinced the Roto-Gro system works, but wanted some more testing to satisfy the cultivators (remember this was 5 weeks ago). In Ontario (where there are no cultivators yet) he said the facility will be totally roto-gro or a derivation thereof. By that last comment I believe he means it wont be the 420 model, but a model with some of the improvements he mentioned he is working with RGI on. Such as a larger diameter to allow some of the larger strains to be grown. RGI have also said they're working on modifications to allow Amfil's customer to grow other crops, so I believe we'll see many different models over time.

Asked about their exclusivity rights in states other than Nevada & Arizona he said:
"Our only rights right now are Nevada & Arizona, but we are negotiating other things with them, I'm just not free to talk about them right now."
I hope RGI don't sign away too many exclusive rights, especially in potentially big markets like Massachusetts.

The clock is ticking, with MPX's aggressive schedule, I'd expect an order very soon. It's a matter of when not if.

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I certainly agree that RGI seem a little slack with announcing intended orders but I guess they have a policy of not announcing until it's official.

No complaints from me though, if you keep posting this fantastic info I'll keep topping up in anticipation of the RGI announcements.

I'd also like to say a massive thanks Red Baron for all the great info you post on RGI, it's a really great help and is massively appreciated.

RGI Price at posting: 36.0¢ Sentiment: Buy Disclosure: Held
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