See Sources at Bottom of page. 


1.)So here are the calculations - 1000 Litres of Disstilate will require 23,077 lb of biomass and/or trimmings (1500 lbs for 60 -70 litres = average 65 litres)* 

2.) 23,077 lb of biomass @ 150 US lb avg cost of Biomass (100-200 USD for Bio mass)* = 3,461,550 USD

3.) Assuming LDS produces and sells on the LOI 1,000 Litres a month of distillate for $6,500,000 USD ($6 - 7 million USD, average 6.5 million$ was retracted but announced)

4.) Wholesale cost of goods $3,461,550 USD - Order price 6,500,000 =  Profit of $3,038,450 or roughly 55 - 60%.

5.) TOTAL Costs associated with the company for 2016 (- .05 ps) and 3 quarters of 2017 (-.10ps) avg. net loss per share of (- .075ps) for last 2 years.  Based on the number of shares totalling 107,490,000. x (-.075 avg) = $ 8,061,000 USD/year all in costs and compensations. 

ISubsequently, a contract to supply 1,000 Litres of Distillate a month will require 3.461 million$ to manufacture, and sell for 6.5 million$ in revenue (per month). All in buisness expenses and production will total a burn rate of  672,000$ a month (8.061 million USD / 12 motnhs = 672,000$ month). Therefore, 6.5 million - 3.461 million - 672,000 = $2,367,000 profit per month**. 

Continued operations of producing 1,000 Litres per month of Distillates will then produce revenues of $78 million USD per year (6.5 million on 1000L Distillates alone)/ All in costs   (Manufacture costs ((3.461 million X 12 months) plus (672,,000$ burn rate X 12 months)) = $49.596 million USD.  As a precaution, I will factor in an additional $5 million USD a year for added costs related to manufacturing or $54,596,000 million USD.  

Producing 1,000 Litres of distilliate and selling whole sale will generate a yearly profit of  $ $23,404,000 USD (78 million - 54,596,000). In short, the US exchange ticker: LDSYF is valued at 64,190,000$ USD market cap. EPS (earnings per share = 23,404,000 USD / 107,490,000 shares  (total) = 0.22$ Earnings per share. To determine the Market Cap of these profits.  Take 0.22 $ earnings per share Multiply it by 30.708  multiple ( Mean average 30. 708 of Alcohol/ Tobbacco/Retail specialty Lines/Drugs Pharma/FoodProcessing/Food wholesaler ((not sure of industries multiple etc. see below***))) x 1.31 (US/CDN exchange rate =  $1.31 CDN for 1 US dollar) = 

You can expect a share price of 11.44 $ ps on the CDN exchange with a market cap of $ 1,200,109,289 CDN Just on the sale of 1,000 Litres of Distillate per month.**


Mean Average taken from multiples below: 39.70 X*** 

Alcohol 31.31 X multiple
Tobbacco - 29.52  X multiple
Retail Special Lines - 43.48 X multiple
Drugs Pharma - 46.35 X multiple
Food Processing - 36.80 X multiple
Food Wholesaler - 50.79 X multiple

Low Ball of 27.2 X multiple forward P/E (Organigram) (Lowest in CDN MJ space) = 7.84$ ps
High Ball of 495.7 x multiple forward P/E (Canopy Growth Corp) = 142.68$ PS

Overal S&P median average P/E is 15.70 X multiple = 4.53$ per Share. 

** I want to stress, I was extremely conservative on whole sale price estimates of $6,500 per litre. (Price ranges from $6,000 to $ 12,000 based on purity)
**Median Bio Mass Amounts of 150US a lbs is fair. This will likely be much lower with own cultivation.
**Did not Include Future Cannistrip sales
**Did not include increased revenue from other streams or increased production, purely 1000 litres of Distillate
** Used S&P median Multiple of 15 X, Extremely Generous (((Industry avg is low of 27.2 - 495.7 https://www.fool.com/investing/2018/01/08/which-high-growth-marijuana-stock-has-the-lowest-f.aspx)))
**Added $5 million to production costs (Generous)


Sources


https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

Abstract - Industry P/E averages

https://www.stockhouse.com/news/press-releases/2018/05/30/lifestyle-delivery-systems-inc-announces-that-cspa-group-inc-has-received-an

Abstract - Letter of Intent (the "LOI") to purchase one thousand liters per month of extracted distillate from cannabis oil.- Valued 6 - 7$ million wholesale for 1000 Litres. (retracted statement)

https://equity.guru/2018/05/09/running-numbers-just-lifestyle-delivery-systems-lds-c-got/

Abstract -CSPA has also taken delivery of 1,500 pounds of biomass for contract extraction with an anticipated yield of between 60 to 70 litres of high-grade extraction.

I’ve found listings for wholesale oil sales for vape pens in California at $7,500 a litre, but usually it goes for around 10k, maybe 12k. High quality, consistent supply from a permitted extractor, and one that can clean impurities into the deal, would be on the high end of that equation.

So the 1500 lbs that was delivered will come out at a value of around $450,000 – at the low end.



https://www.quora.com/What-is-the-cost-per-pound-to-trim-marijuana (Biomass)

Abstract  - 100 -200 USD for Bio Mass

https://lifestyledeliverysystem.com/investors/financials-quarterlies/

Abstract  - Quarterly Data

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

Abstract  - P/E Multiplier

https://www.multpl.com/


Abstract  - P/E Multiplier

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