RE:RE:Just SharingThanks for sharing jboom, much appreciated!
Also asked couple questions last night that got answered this morning:
My questions :
1. Is there anything that may be delaying any potential customers from signing a proposal? 2. If a customer buys, or leases-to-own a co2 delivery solution system, how would it maintain the same return on investment as leasing indefinitely? I guess what I’m trying to understand is, how a system would be priced? Based on sq foot, crop being grown? Would a 1 million sq foot lettuce greenhouse pay the same as a 1 million sq foot cannabis or hemp greenhouse?
Sam: 1. Summer doldrums a factor. Also push back re our leasing only model. Several potential customers may buy or lease to buy a customized CO2 Delivery Solution but not lease perpetually. The 30 proposals are for trials/commercial pilots to be paid 50:50. A few balk at that.
2. We have calibrated pricing the 3 options to be IRR neutral to us. Yes most proposals per square foot adjusted for crop being grown. Est. EBITDA per sq. ft. 10x or so greater for cannabis the flowers/food plants so we price accordingly. Also prices vary based on whether greenhouse has booms (lowest cost to integrate) some or no irrigation infrastructure.
Still amazes me how fast I get thorough responses this quickly from Sam, which keeps me confident in these harder times that management is hard at work! I believe we are around the Corning from signing either a pretty significant contract or 2. I also agree with the snowball effect, once we get a few big contracts under our belt, we could start rolling pretty fast! Let’s get a good start to September and hopefully some news on plant physiology or water usage would be great! GLTA