Des. Lab has the capacity to ramp-up to 15K lbs / day Less than 30% of CLI's crop ( say 280K lbs ) would take less than a month to process with progressive payments.
IMO, CLI will want to sell some of the remaining 70%+ to other processors, perhaps some interstate, IMO.
We dont know the fine print from the offtake agreement. For example is there a %CBD kicker etc?
When CLI announced the offtake agreement @ $35USD/lb when CLI's estimate of biomass price was $35 USD-$45 USD /lb and the market estimates were $3.5 /USD/lb/% CBD. This would ahve assumed that our CBD % was 10%.
Estimates by marketers average 14% CBD over the 3 varieties.
