ECS news, page-360

With the recent figures from LGP, that every 100kg of dried flower = approx $781k of revenue. It would seem that we did pick up Murray Meds for a bargain.

The 2350 harvested should have a retail value of approx = $18.3 million. Of course this will be approximate, and need to be conservative to account for learning pains, etc, lets even take this down to $15 mill. Seeing as we paid $7.5million for murray meds in cash and script, would make it seem like we will be making back that money relatively quickly and it was a good move as the revenue is coming on the books so soon, so hopefully we have seen the last CR.

If we now go into the growth this year, some lessons learnt from murray meds operation and they can have a harvest closer to their allowed limit of 3500. and Tasmania gets their current commerical harvest of 2000kg, we will be looking at around 5500 kg of dried flower, using the above numbers would have a revenue injection of $42.9 million, this is even without any approval for expansion from ODC, and ofcourse will be bigger if ODC grants approval for expansion before season kicks off.

One thing to remember too, is that our costs to get this revenue are going to be fractions of the costs that companies like LGP and CAN pay , as outdoor grows are approx 10 times cheaper and still carry TGA Good Manufacturing Practice (GMP) rating.

Looking better and better for ECS now that we got these figures, just got to wait for the CEO to actually let the market know this is happening, if not just let the quarterlies speak for themsevles as the medicinal cannabis revenue comes on board.