Nextleaf Solutions Ltd C.OILS

Food for Thought

[shneps]

I just wanted to put a little food for thought out there while we wait on financials. I done a little speculation on potential values and ask that if somebody see something out of whack to please comment. As per the April 20 2020 news referencing our Ontario based extraction agreement shown below I've based some assumptions on possible outlooks.

- $16M of projected revenue.
- Paul had referenced (on Twitter) about extractors generating revenue on distillate at $8,000 per Kg
- 15t of dried flowers = 15,000kg
$32M / $8,000 per kg = 4,000kg of distillate = 3.75Kg of flower produces 1Kg of distillate
My assumption is they are splitting the revenues 50/50 = $32M for 15t of premium flower.
That is a renewing contract every year or every 15t , which ever comes first.
That contract ends in less then two months.
Have they completed this yet?
This is gross not net revenue.
Just looking for feedback.

Nextleaf Solutions Ltd (CSE: OILS) has signed an extraction agreement with an Ontario cannabis producer, which will see the producer utilize its licensed greenhouse for cannabis cultivation to be further processed by Nextleaf.

As per the agreement, the cannabis producer will cultivate cannabis for Nextleaf, who will then further process and refine the flowers into CBD oils and distilled THC. Then, the refined product will be sold to wholesalers for further distribution to the cannabis market, with sale proceeds divided between Nextleaf and its cultivating client.

The agreement has a duration of one year or once 15 metric tons of cannabis flower has been produced – whichever occurs first. The agreement will automatically renew by each yearly term thereafter. Nextleaf is anticipating that this agreement has the possibility to generate approximately $16 million in gross revenue for the company.

[Salbrom]

we should see revenues close to 38,000,000$ 

[DonRudy]

Nextleaf fiscal year ended Sep,30/2020 with revenues of $691K. A jump to 38,000,000 in revenue in the following quarter seems far fetched. 

[AuroraAurora]

Exactly, DonRudy, I don't know where Salbrom is getting the info to inform his posts. They seem to be pulled out of thin air and have very little substance. 

[DonRudy]

@Aurora I'm unsure where Sail is getting those numbers?  Paul stated December/2020 was their first million dollar month. With December being the last month of the quarter, there is no napkin math that will bring us to $38 million. I believe we will be lucky to see 2/3 million in revenue for the quarter. That's simply a guess. At this point I don't believe we are hitting it

[AuroraAurora]

I wholeheartedly agree with you DonRudy. I think it would be best if Sailbrom didn't post if they are going to be spreading misinformation. Let's all be cautious about their posts. If they're saying revenue "should be close to 38 million" and people don't take that with a grain of salt, then they'll be hugely disappointed. It's just completely unrealistic and

[Uestis]

Ive been following this message board for sometime now.  I post very rarely, but have reached out to a few poster's in the past as they are far more knowledgeable than me.  I am a long term investor as well that feels I have done enough reading and have reached out to investor relations in the past.  The further we get down the road I find myself starting to ask certain

[AuroraAurora]

What exactly is informing this number? I don't expect it to be that high and would be pleasantly surprised if it were. It's a bit lazy to simply throw out a number without any context whatsoever. Your posts have largely been random one liners without context. Can you please elaborate on your estimate, if you're going to make one? If you say that number, and are I accurate, then some

[shneps]

I had some sleeptime to reflect on my numbers. Morning. My thinking is the $16M is gross revenue for both companies not just Nextleaf. Therefore: - $16M of projected revenue. - Paul had referenced (on Twitter) about extractors generating revenue on distillate at $8,000 per Kg - 15t of dried flowers = 15,000kg $16M / $8,000 per kg = 2,000kg of distillate = 7.50Kg of flower produces 1Kg of

[shneps]

Keep in mind, that is one contract that I am referencing and they have this entire present quarter to potentially completely process it. So $1.6M may not be realized as of yet on this contract. All speculating.