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Gaia Grow Corp C.GAIA

Gaia Grow Corp. is a Canada-based hemp producer company. The Company, through its wholly owned subsidiary Tru Extracts (Calgary) Ltd. (TruExtracts), is focused on developing, formulating and commercializing cannabinoid-containing end-user facing products, such as edibles, prerolls and concentrates. TruExtracts Laboratories is a cannabis and hemp processors, with an approximately 12,500 square foot facility in Calgary. The facility is Health Canada licensed and fully operational, with an expansion capability of an additional 16,000 additional square feet. TruExtracts services include toll processing, tetrahydrocannabinol (THC), cannabidiol (CBD) extractions and isolates, as well as white label service and cannabis THC and CBD products.


CSE:GAIA - Post by User

Post by Aman0808on Apr 16, 2020 12:53pm
87 Views
Post# 30917122

RE: Sale of Milled Product

RE: Sale of Milled ProductThanks for pointing those reports out. I read through and a couple things stood out: 1) In March 2020, CannGroup Development Corp. agreed to purchase 15,000 kilograms of milled hemp powder from the Company, which represents approximately 20% of the Companys initial hemp harvest, for $110 per kilogram pursuant to the CannGroup Agreement. CannGroup operates a Health Canada licensed extraction facility and will use the milled hemp powder as feedstock for the production of CBD concentrates. The Company is continuing to source additional purchasers for milled hemp. A copy of the CannGroup Agreement is available under the Companys SEDAR profile at www.sedar.com. There is somewhat of an answer about how much bio mass is used in milling process. We were told that total biomass was approx 4.2million lbs. This converted to KG is about 1.9million. However, with milling, 15000KG is approx 20% meaning if all the biomass is milled then there is only about 75,000KG at $110/kg = $8.25mill of revenue (assuming all is milled and sold in similar agreements). I was personally hoping for a little bit more but thats still revenue at the end of the day. 2)Retail Business In late February 2020, the Company entered into an agreement to purchase three pre-license retail cannabis stores in British Columbiaone in Nelson and two in Powell River, British Columbia. The aggregate purchase price for the three stores is $1,500,000, which will be satisfied through the issuance of 30,000,000 Company Shares at a deemed price of $0.05 per share. This purchase is subject to the successful listing of the Company on the CSE and is expected to close shortly after such listing. I posted previously about this agreement when first announced in Feb because the management said they wanted to grow via revenue and not dilution not long before this PR. Someone on this board told me i misunderstood and it was not dilution. Well it is and the full agreements are posted on Sedar now, its 30mill shares. All this aside, it is nice to see some transparency of the agreements/contracts posted online. Hopefully the next step is Gaia making their own CBD distillate. I recall their old presentation deck on their website saying 1000 acres can make about 25000KG of distillate and the selling price is something like $6500 per kg. Those numbers, even if partially done ( like making 1/4 into distillate themselves) seem pretty damn good to me.
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