LDS - Focusing on what we do know While waiting patiently for things to happen can take its toll on a person's patience, focusing on what we do know can give more piece of mind to one's overall LDS holding strategy. We do know the following:
LDS is considered to be the California industry leaders in pot by both consumers and State Government. Their consulting services $ numbers (showing other companies how to become California rules compliant) in their quarterly reporting ($650,000 roughly) as well as their permitting in place say so (#000001 is their license number).
Their graduation to the OTCQX, the highest level of the OTC exchanges should not be understated. Currently they do not meet the requirements for entry as they are still a penny stock that trades under $1.00. Only 340 companies trade here including BASF & Danone included in this list. The company would have had to convince the OTCQX with some information as to why they should be considered for inclusion.Cross-trading on the CSE in Canada and the OTCQX market in the U.S. provides LDS the ability to efficiently build global investor awareness and enhance disclosure in the U.S.
LDS was sponsored for OTCQX by O'Neill Law Corp., a qualified third party firm responsible for providing guidance on OTCQX requirements and recommending membership.
https://www.otcmarkets.com/…/get-started/otcqx-international
The not so good news is delays in revenue numbers for Q1 projections may occur because of their late January 22 production start up to ensure proper permitting and fire safety (additional sprinkler system) as well as the 10-15 business days for testing product that will likely be an ongoing thing as California ensures compliance from all pot harvesters over time.
Samples of resins have been sent and are being sold to Harbourside dispensary in Oakland as "that's where products go to live or die" (Phil) with their massive customer base of 300,000 being a great indicator for level of success. Written conversations with staff as well as pictures showing samples being sold confirm product being sold here. It is still unclear how much revenue will be generated from these samples or how much samples were sent. We have no reason at the moment to think that the products at Harbourside are not doing well (we know they have the best products) and every reason to think that a news release announcing sales to dispensaries will be coming along soon (before May).
That being said the luxury Reveur product line is all going out to dispensaries THIS month which means it will be included in Q1 Revenue numbers which will be released May 30, 2018 (if last year is any indication which it should be as they have been consistent in their release dates every quarter). Once LDS announces the dispensaries in which they are selling to, we can call in to see how much the product retails for and come to an approximation of what it might wholesale for. Multiply that by 15,000 grams and you can approximate revenues for the Reveur line for Q1.
Cannastrips flavouring formulations are still ongoing and will be finalized this month with their launch date being released.
If this does not happen by the end of March without notification, then shareholders will have every right to be upset about this. I've mentioned to Phil numerous times, we can sure take good news and we can take bad news as it tells us what's actually happening with the company but what we can't tolerate is NO news. Phil is very aware as he is told this every day by shareholders. He passes this message on to management regularly.
LDS Cartridges will be produced for Q3 and Q4 once California starts clamping down on the non compliant producers out there (pretty much most of them) beginning of July as they don't want their uncontaminated product associated in any way with the herbicide and pesticide contaminated garbage that still is being sold in the market.
Roughly 19 million warrants are excersizable at $0.75 and will all expire at the end of May. (4.5 million have already been excersized on the last stock price run). Sizable amounts of cash will come in with those warrants but in order for that to happen the stock price must be higher then where its at now. Management is very aware of this and know that announcements must be made very soon in order for this to happen.
Just for information Q2 2018 numbers will likely be released August 29, if last year is any indication and Q3 on November 29.