Here's the basics again........ and they are only getting better as we move forward.
-35,645 metric tonnes yeast = total global market for spirits.
-Feb breakeven of 18,000kg @ $100/kg = 0.2% of wine market.
-Wine market must then be about 9,000 metric tonnes or 20% of total spirits yeast market.
-Feb must then only need about 0.04% of total global yeast market to break even. (negligable)
-If FEB achieves only 2.0% of global yest market it would equal about... 35,645,000kg x 2.0% = 712,900kg.
-712,900kg x $100 = $71,290,000 annual revenue
-$71,290,000 with 15,000,000 shares out = $4.75 revenue/share.
- @ 10% return each share = $47.50
Either a substantial split or new issue in the $3 -$4 range would not be out of the question to provide liquidity.
$2.00/share at this stage would be a reasonable value now with the higher range early 2007 on news of sales agreements.
$.80 today is simply the indication of how far under the radar this one is flying.
THEN WHAT ABOUT BREAD AND OTHER POTENTIAL PRODUCTS??????
FROM FEB WEBSITE
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Q How big is the world market for yeast in wine and distilled spirits?
A Annual worldwide market for yeast in these products is estimated at approximately 35, 625 metric tons (figures are based on estimations of available information as publicly disclosed global figures). Prices for these beverage yeasts range from US$20-140/kg.
Q How much yeast does First Venture have to sell to break even?
A 18,000 kgs based on current estimates, assuming that First Venture produces and sells yeast without sublicensing sales to a third party. Is amounts to approximately 0.2% of the current wine yeast market alone.
Q How much yeast goes into a bottle of wine, and how much will it cost producers to use First Venture's yeasts?
A Using a conservative estimate of 0.2 grams of yeast required to produce a litre of wine, we estimate that at US$100 per kg, this equals about 2 cents per litre or about 1 1/2 cents per bottle of wine.
Q What price does yeast sell for, and how much will First Venture's yeast cost?
A Prices for yeast range from US$2 per kg for bakers yeast, to US$140 per kg for specialty yeasts like wine yeasts. First Venture's yeast will sell for about US$100 per kg.