Can you feel it., page-33

Re the first link above, I've combined & updated the information, hopefully making it more useable. Much is pasted from my notes - hope it makes sense.

General

Shares on Issue 129.9m inc 10m escrowed

250,000 70c optons exp 30/6/19 (Julians)

2,950,000 65c options exp 15/1/20 (issued to employees & consultants under the Company's Incentive plan)

9,186360 Class A Rotogro Inc Performance shares (C$5m non mj sales 18 months = 28 Sept 2020 ) << will issue if Gibio and/or Freshero order >>

9,186360 Class B Rotogro Inc Performance shares (C$10m non mj sales 30 months = 28 Sept 2021 ) << will issue if Gibio and Freshero order >>

1,000,000 Class A Hansen shares << will issue >>

1,000,000 Class B Hansen shares << will issue >>

1,000,000 Class C Hansen shares << will issue >>

2,000,000 Class D Hansen shares << will issue >>

5,000,000 Class A Perf shares........expired

7,000,000 Class B Perf shares $20m by 13th Jun '19 expired

9,000,000 Class C Perf shares $50m by 13th Jun'20 << probably lapse >>

9,000,000 Class D Perf shares $80m by 13th Feb '21 << probably lapse >>

Top 20 hold 44% of shares

The Rotogro machine

Initially developed 4' diameter machine which has evolved over last 10 years, developed for Cannabis

Gibio wanted a bigger machine for fresh foods, so developed the 8' machine last year.

The 8' machine has a removable drum allowing full automation seed to harvest

Advantages over conventional grow beds:

3 - 6 or 9 times the growing area for same floor space

Gravitropism (due to rotation) - stronger bigger root system - quicker growth, 6 crops pa for mj, 3-4 crops conventional

CO2 precise delivery

Cool light - ducted tube

All plants at a uniform distance from the light source

Plants get full light spectrum due to rotating around it.

Fully automatic, can be remotely controlled by internet

Automated precise feeding & lighting, ph levels etc - proprietary software.

Controlled environment enables consistent repeatable crops

Year round harvesting, not season dependant. Good for labour, drying etc

Use of full 360deg of light cf standard 120 deg

Water savings - they say significant

Power savings - they say 30% - looking at another 50% with LED

HVAC savings re ducted light, small rooms alternating lights on/off in rooms

No pesticides needed, due air sealed small gro rooms, full automation meaning fewer entries to rooms.

Gibio

1st announced May 2018 after having done a year of testing on the 4' machines

Binding letter of Intent

We invested CAD$375k for 9% equity, option ( but not commitment ) to go to 49%

Quebec based, looking to supply a "prominent supermarket" with 36,000 cos lettuces per day

Using 420 machines (8') per facility

Aim to do 10 such facilities in 5 years

Presently designing facility & automation

Next steps:

A binding JV signed with RGI committing to a certain % (financed by discounted machine prices)

Completion of automation of harvesting etc

Build a facility

So in reality, machine orders are still a fair way off

Freshero

https://www.freshero.com.au/

1st announced Aug 2018

HOA provided for testing & a commitment to buy 600 machines in 24 months

CEO Tony mahoney, who was CEO of Freshmax which he built up revenues from $12m to over $400m

also co-founded Nutrano in Nov 2015, had a turnover of $230m in 2017

Worked in Woolworths senior management for 10 years

Business model being done for a major Australian Supermarket

Markets also include SE Asia (Singapore Hong Kong) NZ

We will get a commission on gross sales

Natham Lude, our new Director, runs a company that Freshero's COO & CFO is employed by or consults to.

Long term fixed price supply contracts

Access to warehouse operations owned by a major retailer

Leafy green trials surpassed expectations

Presently doing trials on other crops such as strawberries

They also have enquiries from Qatar & Nevada (Las Vegas I presume)

Looking at full automation from seed to market

8 machines for pilot facility before going full scale

A facility will have 720 machines, 576 lettuce per machine, grow time 18-20 days*, capital cost $20m per facility

* longer than Gibio due to growing a larger head

Next Steps:

Set up pilot facility with full automation - I presume to satisfy the supermarket chain

Sign JV with RGI, fit out their facility

IMO this will be quicker than Gibio who have to build a facility

Rapidly expand to all Capital Cities, NZ, SE Asia, Qatar, Nevada

Both Gibio & Freshero using the same 8' machine and the testing results have surpassed expectations. They are now finessing the seed to harvest automation.

Supra

Paid $11m for Supra's LD (licensed Dealer) 20% cash, 80% equity (based on 52c share) paid after prescribed miletones reached

Have a 44,000 sq ft facility ready to lease (maybe already leased?)

LD has been converted to a processing license under the new Act

Have employed CCI Cannabis Compliance Inc to expedite the change of address & addition of cultivation

CCI successfully attained licenses for Valens & Miracle Valley (who use our setup/machines)

Normal licensing approval takes min 18 months, having a LD will significantly reduce this

Expect to be licensed & commencing cultivation this year

Based on trials, we can produce 4500kg pa per 10,000 sq ft of grow rooms (10)

based on wholesale price of MJ this equates to $33m sales per 10 rooms, could do 30 +

Next steps:

Lease premise (if not already leased)

Transfer of address for Processing License

Fit out 2 rooms to get cultivation license

Formalise offtake agreement with Valens

CSE Listing

Mentioned at AGM and also in last Quarterly

Possibly why we did the recent cap raise so soon

We will look like a bargain to Canadian investors - should strengthen shareprice.

GFS

http://fertigationsolutions.com/

May 2018 purchased Hanson's for $1.75m paid by 5m shares @ 57c

Also 4m performance shares based sales of $5m in 36 months & $10m in 60 months

Based in Nevada

At acquisition date had done 12 licensed Cannabis facilities in Nevada

Feb 2019 CAD$130k order for Frozen Penguin, just for 2000 sq ft - will have 40,000 sq = CAD $2.6m

Feb 2019 $180k order for Polaris

Mar 2019 $220k order for Grove

have ongoing servicing and maint contracts for past sales.

Miracle Valley

https://miraclevalley.ca/about/ though a bit out of date

First mentioned April 2018 with $2.3m order (9 rooms)

In Aug 2018 they said they'd been testing for 12 months

29,000 sq ft facility, order for stage 1

Paid $1m deposit

24 machines delivered (1 grow room to get license)

Awarded Cultivation license in April 2019 (used Cannabis Compliance inc as advisor)

Fully funded, with license can fit out entire facility.

Frozen Penguin

First mentioned Aug 2018 - had then been testing for 6 months

$600k order for 48 machines for 1st 2000 sq ft - will go to 40,000 sq ft = $12m

Paid 50% deposit, delivery end of Q2 (June)

Late stage applicant - no cultivation license yet

MV took delivery of machines in Feb, received license 2 months later in Apr,

So Frozen Penguin should get license in a similar timeframe.

Other

From AGM at least 6 other clients testing machines

Revenues for this Q should surpass $1m with $600k Frozen Penguin order + Fertigation etc

Very cheap compared with peers, we'll have $1m + revenue this Q.

Our Market cap of $22.7m compares with say Cann Group $300m with no revenues.

Now looking at no or low equity JVs with cannabis cultivators - advanced negotiations