Final Notes from DDJust wanted to post the last few items, as I said I would, before poor JaInvest has a stroke.
I spoke, on Thursday, with Ray Reilly who is the Senior Authorizations Specialist-Water
Ministry of Forests, Lands, Natural Resource Operations and Rural Development
Okanagan Shuswap Natural Resource District. Ray is the gentlemen who actually signed the water licence for Naturo back in 2017.
I also spoke with Luca Leone and Martino Ciambrelli for over half an hour on Friday. Both Luca and Martino are very nice guys but I do have to say they are salesmen first and foremost. The two of them are the kings of spin and if they don't like what you are talking about or don't have a legitimate answer then it's spin the buzz words and take over the conversation with something they want you to hear.
Bevcanna is building themselves a potentially good business platform and are making a concerted effort to move multiple things forward and are doing so based on their best attributes, those being sales and distribution.
The concerns I've previously stated don't need to be readdressed but the main core of the business is the ranch, water licences and grow ops.
I received the Ministries take on the bottling facilities water licence before asking Martino and Luca their positions. As in JaInvest's "email" from Luca the said basically we use our quota, pay at the end of the year and ask for an increase to the amount of water they require. Done deal,easy peasy.
According to Ray Naturo has access to water for bottling strictly through their water bottling facility licence (which currently will only supply approx. 3% of the plant's capacity) Naturo cannot simple tap into the other wells on the property (as stated by both Luca and Martino) they have to apply for additional water usage and there is by no means a guarantee it will be issued.
Note: Naturo did apply and receive a water licence in 2017 but Ray said this was granted strictly because there was no increase in volume of water to be extracted on a yearly basis. You will remember in the Global News report of all the upset neighbours in the area when this application was being reviewed.
If Naturo were to request an increase it would require a new licence amendment and be fully reviewed before issuance. The Province makes an effort to turn around an application like this within a 140 day period but again no guarantees. Ray and I also discussed the fact that the aquifer (#806) which Naturo taps into is actually a very small aquifer whose collection area is only approx. 2.5km2. He said that's tiny.
Interestingly enough Martino referred to his years at Pepsi and Planters Peanuts along with his 30 years experience. He said company's like Nestle's do this sort of thing all the time. In fact that is not the case. Nestle's always ensures before they purchase a well for bottling water as to the volume allowable from that well first. In 2016 BC (and other provinces) changed their water laws because of companies like Nestle's and how they abused the system. Again Naturo received the licence because the existing water permit was very small and no increase was requested at that time.It was an existing "grandfathered" licence. I asked the question as to why Bevcanna would move forward with the purchase transaction of Naturo without having a water supply guaranteed beforehand. In Martino's expertise, if they ask (the government) they will just give it to them automatically because it creates jobs. Ray was very clear this is not the case.
I also asked about the "Preapproval" Naturo apparently has for increasing the plant size from 40,000ft2 to 170,000ft2. My career was in the industrial construction business and "Preapproval" is not a legal term. Engineered drawings are submitted, reviews, application periods for neighbours to review and comment, permits, etc. The bottling facility currently sites on a piece of property in which a 170,000 ft2 plant would not even fit on. The bottling facility sites on a seperately zoned site from the 350 acre ranch. Martino agreed there would have to be an amendment to the zoning by law and applications for permits. again this is not a guarantee of approval. Martino again said that they would easily be granted all of these requirements because they would be creating jobs for the local community.
"If we build it, they will come"................... we all know that is just a field of dreams and certainly not the way to run a company.
I also asked about the almost $1M Marcello was given for "property" from Bevcanna in March and April of last year. Neither one of them supposedly knew why the CEO was given a million dollars, particularly the President of the company. Seems like a strange payment considering Bevcanna is purchasing the property and Naturo's assets. The fact the president doesn't know why it was issued is even more disturbing.
The two lawsuits between Clearwater Cannagrow and Bevcanna, for breach of contract, are still ongoing. They stated there were no liens on the property, that they were aware of.
Anyways, I personally will not be investing in the company but wish all who do the best of luck moving forward.
Cheers