EvelKnievel wrote: So perhaps his math used was somewhat similar to whoever got the 12 million grams per annum number for Auxly to project in its own news reports...
Quantitative analysis
As discussed above, Inverell's current harvest is slated to provide 75,000 KG of biomass and their hemp strain with the lowest CBD content sits at 8%. The industry has been shown to have an extraction efficiency of 87.7% ± 7.9%. At the low end, this would give us a 79.8% extraction level on the 8% CBD content of 75,000 KG of hemp biomass. 75,000 KG x 8% indicates a potential CBD content of 6,000 KG, with an 79.8% efficiency in extraction. However, this drops to 4,788 KG of CBD crystals. With wholesale market prices for CBD crystals oscillating between $6,500 and $20,000 USD/KG over the last few years, the market is very volatile.
Even though CBWTF has an extensive retail network through it's various subsidiaries and partners, let's use the low end of the wholesale market as an estimate in order to hedge some of the market fluctuation uncertainty. At $6,500 per kilogram, the 4,788 KG of CBD crystals - that can be produced for every four-month harvest cycle - have a wholesale value of a little over $31,000,000.
Even by taking the lowest assumptions from every metric - extraction efficiency, CBD content, and wholesale price - this should add $93,000,000 per year in revenue, even if Inverell never expands to more than this initial 150 hectares of cultivation even though they have 574 hectares available. The income generated by this one CBD focused subsidiary alone, out of over 20 other recreational cannabis focused subsidiaries and partners, is 20% more in revenue than the current largest cannabis company in the world, OTC:CGC. It has a market cap of over $11 billion and dwarfs OTCQX:CBWTF's market cap of only about $485 million.
https://seekingalpha.com/amp/article/4210134-auxly-cannabis-poised-capture-significant-portion-cbd-market-u-s-government-softens?__twitter_impression=true