RE:Highlights from chat with IRReposting this to keep it available for anyone who cares.
cloreenbaconskin wrote: 1) Main channel of distribution of CannaStrips wll be organic. With the MOU announced today, LDS has upwards of 800 dispensaries available. A typical purchase order would generate about $5,000 in revenue (average) so if 1 order was placed to each of the 800 dispensaries, $4 million in revenue would be made. This is potential not saying that these are the actual numbers or will actually happen.
2) Promo/advertising: will be done through Weedmaps and word of mouth in general; there will be no hype generated by the company as they feel the hype in Canada is more negative than positive. Stocks/valuations are running well above where they should be for those companies; the value of LDS right now given what it has done thus far seems fair. They hope valuation adjusts as the company achieves various milestones (Q1 2017 revenue earned expected to be announced); stock should adjust accordingly.
3) Cost of the Strips: $0.15-0.20 cents per strip expected range; potential sale price $0.50 to $1 per strip (expected range) - nothing confirmed here though in terms of actual numbers but ranges seem reasonable.
4) 2017 sales will be all med as it will take 6-12 months to define the rules, etc for rec.
5) As a licensed producer, with sales (Q1) and a low float (relative to peers) of 47 million shares apprx (70 ish million fully diluted), value of LDS should come more in line with comparables in Canada (he mentioned Aurora as an example of overvalued with a huge float 250 million or so; 1 million a month in sales trickling down to a net loss); again they don't want LDS valuation to become ridiculous like Aurora and several other Cdn players as that leads to unsustainable hype.
6) Patents: LDS has patents in place; the Intellectual Property is protected.
7) Time frame for CUPs: it does take about 2 years to obtain 1 CUP; LDS has a major competitive advantage with the CUPs it has in place.
8) Many high profile people have approached LDS mainly due to the fact that LDS now has an extraction license (CUP). High profile as in NFL players, NBA players, celebrities (movie/TV), etc. They are looking for business opportunities related to EXTRACTION.
9) The Extraction CUP: this CUP is the holy grail; estimated only 10 companies in California have an extraction CUP; LDS is of course one of them; the celebrities/sport players mentioned above recognize this and approached LDS accordingly - obviously nothing could be stated as to what if any business deal(s) were struck; my guess is none yet but the interest is there. The extraction CUP is what will generate the most value for LDS. Everyone is focusing on the strips which should also do well but the extraction side of the business is expected to be the huge money maker. Potential here for many JV's and/or licensing agreements with various parties with respect to extraction as LDS is one of only 10 companies that have an extraction CUP in California.
10) Chris Parry: they had a falling out as the business did not follow through on what was promised at that time; he understood why Parry was upset/disappointed with LDS and its performance then. In the past few days, Parry has spoken with IR and LDS mgt. The conversation seemed much more favorable (so who knows if Parry will now write more about LDS and see it as a turn around story or not). He did not know if anything will materialize out of those conversations but said they seemed positive.
11) Future Private Placements: nothing is officially planned at the moment but that could change at any time to fund costs of expansion (typical PP for any small company needs for growth); I asked if a PP was done, what would be the amount raised - he stated $5 million would probably be a reasonable level - but again nothing confirmed/planned/announced/written in stone/etc etc etc. Demand for investment in LDS is there...he said that he has even been approached by retail investors with $250,000+ to invest in the company.
12) Risk: risk is there for any company; set backs could happen (none specifically stated but obvious risks are present in any business); PP will obviosuly be needed to fund future growth as if all goes well with strip sales and more importantly sales from the extraction side of the business, money will be needed to fund further expansion/roll out.