Sunniva Inc C.SNN

Phase 2?

[mungerman]

anyone have any info on whats going on or the timeline for Phase 2?

[Bluechip2]

phase 2 is going to be funded with revenue from phase 1, speculative sometime in 2020 to begin construction. Phase 1 (7) licensees have been pre-selected, I believe, but not announced.

[mungerman]

thx for the info. but what did you mean when you said. "Phase 1 (7) licensees have been pre-selected, I believe, but not announced." i thought phase 1 is done end of 2018

[Bluechip2]

they have 8 x 22,000 sq. Foot cultivation licenses for the 325,000 sq.foot phase 1. I think they get around 20 percent of sales from each grower plus lease payments. One of the licenses is their own. The reason for.this has to do with state regulations limiting the size of grow operations for an individual business. Check out their investor presentation on the website for more info.

[Sunniva4Life]

Tenants cover all of the costs of operation (carried out by Sunniva) and then Sunniva gets 20% of the profits on top of that.

[Bluechip2]

I should also add that this is a temporary situation in terms of maximum indoor grow space of 22,000 square feet per cultivator. From what I've read, these restrictions will be removed by 2023, so a brilliant strategy really for Sunniva. The Oliver facility is apparently going to have the same design, but obviously without these restrictions. With the Canopy 2 year contract,I assume they will