Excellent news since Lucky Lake was put on the back burner...

Excellent news since Lucky Lake was put on the back burner because it was a smaller facility. If they start now production by July 2018 could be 8500kg at Duncan with phase 2 development under way plus 1200kg at LL and maybe about 1200kg at the new facility.

So if commercial price is $8-10/g estimate HVST sells around $4/g with 10 000 kg a year that is $40 000 000 first year sales which should be used to fund Phase 2 and 3 so by year end of 2019 production being 51 000 kg/yr total for just duncan facility.

That is 200 000 000 per year at $4/g with operating costs estimated to be $1.8/g that is still $100 mil/yr revenue 30 months from now plus what ever happens at the 2 new facilities and still no reason for a CR

That is just from what is already known now about UG, there is still satipharm expansion and sales and the israeli part of phytotech.


"On completion of Lucky Lake, UG anticipates that the facility will have at least 60,000 square feet of cultivation space. The new additional facility, once chosen by H1 and accepted by PanCann, will be designed to accommodate an additional minimum 60,000 square feet of cultivation space. This combined with the current and fully funded expansion on 13 acres at the existing and operational Duncan growing facility would give UG in excess of 250,000 total square feet of cultivation space."

250 000 sq ft is only phase 1 at duncan (3 acres is 130k sq ft) plus 60k sq ft LL and 60k sq ft new facility.

LL has a 62,000 sq ft modern agricultural facility but it is on an 18 acre property for expansion which looks like it was 100% owned by MMJ according to an old investor presentation.

Since the facility is already built it is unclear whether the deal could involve a full expansion of the 18 acres or just to set up inside of the current facility. The 250 000 sq ft suggests the latter but the announcement says financing the construction of LL and new facility and giving them equity you would hope there is plans for a full expansion.