RE:RE:Information you need as an investor/ potential investorNicely put misterbill. Unfortunately most idiots here won't appreciate your comments. I agree with you that yes the mirror is a little fogged but most mj plays currently are bloated and painting the pictures that blinded investors want to see. NF albeit risky is no different but definitely has a few things going rite. Time will tell. For now some here are firm and holding, and even adding to their positions.
misterbill15 wrote: No arguments or name calling Orbital14, but a I do have a few comments.
I appreciate the logic, research and conclusions you apply to your posts. Very curious about your motives though, this is VERY time consuming.
From your post...
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It is very worrysome that both NF's tenants seem to be new start-ups and have signed long term leases. Investors are essentially investing in these companies assuming they actually do well. If they dont do well then NF isnt going to get paid and the bleeding continues."
It's MJ! Anyone with a license makes money in this sector. Like printing $$.
Management: CEO is Carman Parente,
serial owner of many failed startups: Previously jumped on bangwagons such as "health supplements" "health foods" "Green energy" "Mining" and now Marijuana which was spun out from his failed mining company.
-The TSV is full of mining co's extending their resources into the MJ sector. Mr. Parente is not unique in this regard. Even the Feds are financing workshops for persons wishing to position themselves in this burgeoning sector
CEO history
He recently sold a 12,500,000 shares into the public market from a price ranging from .03 to .17. Sedar- Share Sales (Material change)
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I read his NR in which he stated he did so for reinvestment/year end tax purposes. No one likes to see insider sells, especially one this large. But even CEO's have financial planning to take care of.
"I have been unable to find any prior experience in the marijuana experience, dealing with REITS or other business of functions of New Farm."
-Not relevant when you bring the right advisors into the model. He started this with 35 yrs. experience in a variety of positions in Public Co's.
Business Model
" what stops anyone else with a few million replicating the model?"
-Nothing, which is why it's good to be first! Get those long term contracts locked in & Business Permits issued before others attempt to replicate. Suppy and demand will sort itself before the Bubble pops.
"Furthermore, New Farm has said they are going to be full service including supplying the land and building, supplying the knowledge for growing, the packaging, the marketing. So essentially they are going to offer a service from start to finish. My question is why not just grow it yourself then? There does not appear to be a block on licenses in Washington. I would understand more if they were going to stick in the business of leasing building & equipment but to be full service makes no sense."
-License approval is a lengthy process. 2 or more years in Canada.
-Existing business model allows for REIT with taxation advantages.
-Full service is, IMO, is very clever. It provided additional revenue streams, NF estimates potential increase 2-3x over and above lease space revenue.
I agree Orbital, there are some confusing areas. Without knowing terms of existing contracts we're left to wonder. I'm not convinced after reading the $10 vs $25 fee that the higher rate includes ALL services. My thought is that sales, packaging, extraction, etc. could and would be an additional revenue stream. The beauty of full service is that there would be "quality control" through the expert consultants on site. Kinda like the "U Brew" phenomena. people can do as little or as much as they want, but on a commercial scale.
If Washinton's MJ License's are issued are easy to come by then this is win/win! Holders will be seeking facilities with existing infastructure.