Bedrocan Please feel free to correct any mistakes or add any additional information.
February 17,2015 the company received a second license from HC for a period of one year (subject to license renewal) to begin domestic production in the first 6 grow rooms out of 34.
May 15, 2015 the company received approval from HC to activate additional 12 growing rooms at its Greater Toronto Area (GTA) facility. To date, 18 out of 34 production rooms, including trimming and drying rooms have been inspected and licensed. When fully licensed and operational the new facility is capable of producing approximately 4000kg of medical cannabis per year.
Currently in their newly licensed facility, Bedrocan has been able to increase their production 10x in 2015 and looking to expand further into the year with 12 newly licensed grow rooms increasing their total production to 20x.
The newly licensed grow rooms would significantly increase their gross profit margins from 37% (587,457/1,574,174) to an estimated 80%.
Inventory:
December 2, 2014: License renewal worth
240kg
January 31, 2015 (representing 13months)
1,574,174/7.50 = 209,890g = 210kg
Surplus Inventory = 27-30kg
May 25, 2015 Harvest
4000kg = 34
6/34grow rooms= 17.65%
4000*0.1765= 706kg
2015 Expansion
18/34grow rooms = 52.94%
4000*0.5294= 1900-2118kg
2015 Estimated Total Inventory: 1,439kg
2015 Estimated Sales Revenue:
1,439,000g * 7.50 = $10,792,500
Break Even Analysis: (FC/p-v)
Variable Cost/Unit
986,717/209,890g = 4.70
Price/Unit
7.50
Total fixed costs for 13 months ended January 31, 2015
3,159,594
Break Even in Sales units (x) & Dollars (x)
3,159,594/ (7.5-4.7) = 1,128,426g = 1,128kg
7.5*1,128kg = $8,460,000