RE:RE:RE:RE:thelonghaul1979 - best post by far in the last month My apologies, my math was a little off a few nights ago. Apparently, they're using a little more room for vaults, offices, and trimming/processing that I thought. However, the math still supports a significant SP once production is underway. I made a poor assumptiont about area utilization and I should have known better. Here's the process I used. I'm not proclaiming to be a finance guy, I'm an engineer so I'm using the information I've learned about finance to the best of my ability. Please excuse the rudimentary calculations.
Phase one square feet - 15,500
Phase two square feet - 41,400
Unused square footage - no real number here yet however, they're backing into 4,000 kg bud/grow so we'll use that. This means that out of the 56,900 sq ft of usable space, they're growing in 40,000 sq ft of it.
Grow quantity per cycle - 4,000 kg
Grows per year - 4 assuming 90-day grow cycles, could be more, some are making 6 grows a year on 60/day cycles (Source: MJBizmagazine)
Grow quantity per year - 16,000 kg
Grow quantity per year in grams - 16,000,000 g
Per gram price - $4/gram
Annual revenue - $64,000,000 (CA)
Current P/S ratio trends in the industry - we'll use HIGHLY conservative numbers of 10X (FYI (Canopy P/S currently 60+, Aurora P/S currently 128+, Aphria P/S currently 150+) (Source: Investing.com/Financial/Ratios)
Float Volume - 162.583 MM shares
P/S Ratio Equation = (SP/(Sales/Float)) = 10
Rearranging we get SP = 10(Sales/Float) = 10(64,000,000/162,583,866) = $3.93/share give or take assuming no dilution
Market Capitalization at this point = roughly $640,000,000 (CA)
By the way, if I'm making a catastrophe error is my assumptions or calculations, I want to know about it. I'm not trying to spread bad information, trying to confuse, trying to pump, or attempting to mischaracterize anything. This is very rough but it gets to my point of SP trending as progression occurs and resulting market caps as a function of annual revenue.