Sunniva Inc C.SNN

Glasshouse germinated?

[Coloradobuff]

Does this mean the glasshouse in California wont be finished?

[ThinAirDesigns]

The glasshouse was doomed from the start (and this doomed the company).    The Canadians rolled into town simply not realizing the massive difference in what it takes to environmentally control a glasshouse in regular 115f heat vs the cooler climate up north.  These added costs (that weren't understood until too late) ballooned the facility cost to well above practical. Even

[scopro]

Member since today. One post. Shorter? More cloudy in central-north california, outdoor grow or conventional greenhouse grow isn't the same quality as what could be grown in the glasshouse... lots of ways to look at pros/cons.

[JMark80]

Glasshouse is just another name for greenhouse. Wine grapes, coffee beans, etc are all grown outdoors. They are correct though, the desert was not a good location, and mgmt didn't have the experience or skills.

[ThinAirDesigns]

Scopro, I’m uninterested in who is long and who is short -- all that matters from an investor value standpoint is that information provided within a post be verifiable fact. Let’s go over some of mine: As to my claim they underestimated the costs associated with cooling a glasshouse in 115f heat, and thus underestimated the costs of construction by something like $30 million bucks … that

[JMark80]

What's that about local taxes...? ;) Cathedral City was an awful choice.

[ThinAirDesigns]

Jmark80 // "What's that about local taxes...?"// Here's a tax summary I put together for scopro a while back.   https://docs.google.com/document/d/1MnGdnserypqeUOZb_mrx46GjaN07qITCUf9HbzcZ314/edit?usp=sharing

[scopro]

I don't recall seeing that before but anyway, you over calculated the cultivation tax. According to Cat City website, it's $15/sq.ft of cultivation space. In the glasshouse there's 247,000sq.ft of cultivation space. This works out to $3,705,000, roughly half of what you have there. Using $1000/kg works in favor of the other locations. Let's be more realistic at $1500/kg and re

[ThinAirDesigns]

// " In the glasshouse there's 247,000sq.ft of cultivation space."// And once again you don't do your research.  CatCity counts your entire facility as "cultivation space", not just the canopy area.  Look it up.

[ThinAirDesigns]

// "Using $1000/kg works in favor of the other locations."// (First off, I was using lb, not kg but that's not central to your point.) You're wrong that it works in favor of the other locations - because CatCity charges 10% for distribution and the distribution tax dominates the 1% Lompoc cultivation tax. Raising the sale price from $1,000 to $1,500 raises the CatCity

[scopro]

Hey smarty pants, if you go from $1000 to $2000 per pound, you double revenue on over 110,000lb/year from $110 million to $220 million. The higher you go the better it works for Sunniva relative to the tax paid.

[ThinAirDesigns]

scopro: // "Hey smarty pants, if you go from $1000 to $2000 per pound, you double revenue on over 110,000lb/year from $110 million to $220 million. The higher you go the better it works for Sunniva relative to the tax paid"// You do know they would get the same revenue in Lompoc -- they would just pay $85 million less in taxes at that price. You are seriously hard of thinking

[scopro]

I heard the glasshouse's last budget was something like $110 million, or about 6 months of revenue at $2000/lb. What is the rationale of charging cultivation tax on a space occupied by processing rooms and a dispensary. That is not right imo. That may be a fact but forgive my brain for defaulting to "fairness" setting. I assumed a cultivation tax per sq ft applied to canopy space

[ThinAirDesigns]

scopro:  // "What is the rationale of charging cultivation tax on a space occupied by processing rooms and a dispensary."// The don't charge out a dispensary as cultivation space (it is taxed separately), but they do charge out processing space as cultivation space. They charge out not only the gross square feet of your building, but also any outdoor spaces of your site

[Bluechip7654331]

really, they haven't paid a cultivation tax yet. Getting ahead of yourself, so excited to share what little you know. Let me guess, Las Angeles is a bonehead place to live and buy a home as well, due to property taxes....

[scopro]

Location is important. I thought this was interesting. It's about dispensary locations and their revenues. Looks like it can vary up to $10 million per year between dispensaries, depending on their location. https://americancannabisconsulting.com/how-profitable-is-the-average-cannabis-dispensary/#:~:text=Basically%2C%20how%20much%20you%20can,more%20than%20%2475%2C000%20a%20year. Given the

[ThinAirDesigns]

scropro: // "the extra light energy will result in higher yield in Cat City"// Weird -- of the literally square miles of greenhouses in California, millions upon millions of square feet of them,  the vast high end tomato glasshouses and pepper glasshouses and cucumber glasshouses and orchid glasshouses and begonia glasshouses and on and on.  NOT ONE of those folks thought as

[scopro]

Those crops' revenue yield per square foot wouldn't justify the upfront cost. Instead of $1000/sq ft/ yr, they'd be lucky to get $30-50/sq ft/yr. Maybe $50/yr if grown in Sunniva's glasshouse?

[ThinAirDesigns]

scopro: // "Instead of $1000/sq ft/ yr, they'd be lucky to get $30-50/sq ft/yr"//   Jesus H. Christ ... can you not read the "lb" sign? 

[scopro]

It's not hard to tell on a map where the strongest solar energy in California is. Refer to this: https://solargis.com/maps-and-gis-data/download/north-america Also, did you know that cooling doesn't require as much energy as heating? And yet somehow Aphria's doing okay. The glasshouse location will likely give Sunniva some of the highest light energy of any glasshouse/greenhouse in

[scopro]

P.S. Tenants aren't responsible for necessary facility infrastructure and Sunniva shareholders shouldn't pay for building blunders. That should be on the builder. The lease's rent is calculated based on the building cost. This guy wanted to get paid two different ways!

[ThinAirDesigns]

// "Tenants aren't responsible for necessary facility infrastructure and Sunniva shareholders shouldn't pay for building blunders."// With a "Build to suit lease", it's not as clear as you wish to make it sound.  If the builder built the building the way the tenent specified, (that's how a 'build to suit' lease is supposed to work), then the

[scopro]

The builder did not complete their obligation to complete the building. At best, there was also breach of fiduciary duty to Sunniva shareholders, as he was a representative of Sunniva himself, being on the Board. He had a responsibility to verify the engineering integrity of the building design before he built it for the company he was also a board member of, to minimize risk for everyone involved

[ThinAirDesigns]

scopro: // "The builder did not complete their obligation to complete the building."// The mediator may decide exactly that - they may not.  Without the details of the lease, I hold no opinion on that final outcome.  You will soon see that in the end it will make no difference to you shareholders.  // "Also, thank you for identifying you are involved with who some

[scopro]

"The mediator may decide exactly that - they may not. Without the details of the lease, I hold no opinion on that final outcome. You will soon see that in the end it will make no difference to you shareholders." The outcome of arbitration will certainly make a difference to Sunniva shareholders. Congratulations on your license. Maybe you may find an opportunity to work with Sunniva in

[JMark80]

I tend to believe it was built to Sunniva's specifications, as was their proposed OK Falls greenhouse.

[JMark80]

Before OK falls it was Oliver. Before Oliver, Merritt. Holler has never had a clue. Who did CP Logistics buy the Cathedral City property from? I'm assuming it wasn't an arms length deal? Weren't James Kunevicius and his partner in crime Edlin Kim involved with CPL? This was sketchy from the start!

[Bluechip7654331]

tend to agree, Sunniva plan was to piecemeal it to together. Didn't know enough to know they knew nothing. Executive neglect, no question

[scopro]

Had the GH been built in the time it should have been, Sunniva would likely be meeting guidance. They had distribution, sales, all set up and ready to roll. The building just needed to be completed by the building company who presented themselves as being able to undertake the project. I heard that Sunniva put in about $23 million into the construction costs- as a tenant! How many tenants pay for

[JMark80]

Barker doesn't know anything about cannabis or greenhouse cultivation, at all. Neither does Sunniva. Wasn't the greenhouse designed by Larssen, or another Canadian company? Sunniva originally said phase 1 of the greenhouse would take 7 months to complete. LOL. Don't forget, this is a company that signed a supply deal with Canopy late Feb 2018 that was contingent on being licensed by

[ThinAirDesigns]

// "It's not hard to tell on a map where the strongest solar energy in California is."// Scopro, you are arguing with an environmental engineer specializing it what? ... controlled environment agriculture, that's what.  What this means is that I design cannabis facilities for a living currently (and I am also the owner of Walker River Farms, a licenced CA cannabis facility

[scopro]

Hypothetical question for you. The GH has a headerhouse of 78,000 sq.ft. Would it be beneficial or debtrimental to the bottom line to install a PV system on this space, if it is structurally possible? Just thinking about the future.