RE:RE:RE:RE:Marcello Leone sells additional 3,800,000 sharesI spoke with the KB water management yesterday and had the following response to my questions. I have taken the Luca Leone email (which I have not confirmed he wrote but we try and confirm this today)
" Rest assured that we have the water necessary to pour. As Bevcanna grows, we have a program to convert the required water from our property to satisfy future scaled production needs. This is partially true in that as the property has existing water rights the ability to gain access to the water is easier then trying to get a new water license. The BC government's water laws changed in 2016 (after the plant was purchased) so the existing license is basically "grandfathered" in for the current 3,120M3 per year. No changes to the license have been made since that time. The thing is they cannot just tap into those other wells and redirect the water usage to the bottling facility. Their current bottling license is for a maximum of 8500 litres per day x 365 days per year for 3,120,000 litres per year. That is 1.5% of the plant supposed current capacity. Our current license has the ability to gain us access to +100,000,000L. As stated above I've shown the bottling facilities current license capacity. The other license they hold is for irrigation. Yes, they could apply for an amendment but the bigger question is why haven't they? As they have repeated stated in news releases the Health Canada license is IMMINENT. If that's the case why would you not even have your application for amendment in to the government? The property already has multiple wells that are registered with the government of Canada. All wells are registered but not all wells are licensed and each license is very specific for usage and extraction volumes. The way that it works, is that the permit is paid on previous years’ draw plus an estimated Litre increase for the upcoming year; hence permits do not necessarily mean capacity." It also does not mean that capacity for the license merely increases as from 3M litres a year to 100M litres a year automatically. This a license ammendment and must be applied for and approved.
Again, I ask the question, if they are imminently preparing to go into production why have they not applied for an amemded license. They have owned the property for six years, quadrupled the plant size (with the intentional of quadrupling the plant size again) but have only secured the water extraction for 1.5% of the current plant's capacity.
Certainly a bit of putting the cart before the horse and seems very odd that Bevcanna would not want assurances of the water license capacities before moving ahead with the transaction.
Only seems logical.
Will try to contact Bevcanna today.