Global Hemp Group Inc C.GHG

New financials on sedar!

[hempster]

GHG has just filed its annual finacials for 2019, these can be found as usual on sedar. While they did post indeed a loss for 2019, mostly due to the write down of the New Brunswick harvest and the management compensation (which is share based, so the losses caused by that are in fact paper losses), things are looking quite promissing for 2020:

1. when looking at the information regarding the joint ventures (page 16), you'll see that the JV in Oregon, Covered Bridge Acres Ltd. is already profitable. They generated a profit of $120k in 2019, and that despite not having even sold all biomass during that financial year (only approximately 66%).
The 2019 harvest, which becomes ready for sale now, has a 50% higher CBD content and 30% more biomass, so the profit could more than double during this year. Not even taking into account the winter crop they grow in their greenhouses.

2. No write downs. The Oregon project is developing well so there will be no bad news on this side.

3. The drone project they have with QWorx could be another source of revenue.

If mangement does not go all crazy with their own compensation like in the last financial year (but I guess they did this because they knew already their plans and potential for this year), 2020 could be really the year GHG finally becomes a profitable business.

[EricTheWanderer]

Thanks for the summary Hopefully this year management will embrace communication of direction and try to lift their stock value. I can understand that they are focused on building the operations side of things, but their PR needs serious work. The stock value should be much higher, and if it is, that should help them with operations. Let's hope this rock bottom for share price and we can get

[hempster]

I think now that they have more or less stable revenue streams, though hemp will always be a mostly seasonal business, we might hear more of them - especially since they really seem to want to increase their acreage this year and establish cooperations with other local farmers this year. Regarding their PR work I agree, I also would like to see more NR. But then again, I'd rather also prefer a

[EricTheWanderer]

I both like and dislike how development focused they are: drones, composites, drying techniques, HAIZ and green house experiments. This year should be the year they use these developments to create revenue streams and once they have those streams, they can use a part of the proceeds to fund the development efforts. I like their innovative approach to farming, but at the end of the day, farming is

[hempster]

Yes. I also hope they finally utilize their whole farm for growing this year. The property is 109 acres but last year and the year before they only planted 33 acres. They could easily increase their yield threefold without even establishing any cooperations with other farmers.

[EricTheWanderer]

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