All Speculation...
Based on what they have as estimates; Ravenquest sold 5765 plants at 29g/plant (which should be 167,185 grams or roughly 167 kg) for a profit of $172,950. In reality, they produced 50,679 grams (50kg) of dried cannbis and sold 25,559 (25kg) of it. In essence, they made $7000 per kg sold.
They claim that they're ramping up to 11,000kg of production and how quickly this will come to fruition is uncertain as the amount being estimated vs produced or sold is not aligned. However, mid-19 or summer is when the Edmonton facility should reach full capacity. At a minimum I would expect that they're hitting a 4000kg a year average for the third quarter which would mean that they should be releasing at least 666 kg of production at the end of July VS the 50kg of production last quarter. 666kg should be 4.6 million in profit.
If they have 8 week cycles, they should be producing 1833 kg per cycle in order to meet their expectation. 12.8 million in profit. OR 2750 kg per quarter which is 19.25 million.
Liabilities are 19,620 and their main debenture is convertible at 1.45 per share. Their maturity is in Feb 2020. Which gives them less than a year to either achieve 1.45 in share value or borrow additional funds. Considering that at best they will only achieve 17.4 million in proft with the following two quarters, which will be used to finance further expansion as well you can assume that additional private placements will be completed unless we have a parabolic increase in shareholder value. These private placements will be on top of the recently placed one to maintain operation of 4140000 with warrants at 0.60 to bring that total to 8.2 million shares.
The wait for Ravenquest has been very long and the valuation of the company right now is fair with a market cap of 53.7 million. However, they have many future opportunities that aren't written into the price with Western Agripharma, Indigenous opportunities, Edmonton expansion, 1Life and European markets as well. Once they've proven production production and sales from their facilities, they can begin to cut away their debt and these opportunities can be realized in the stock price. However, they'll need to continue to be creative by starting ventures without dilution such as the JV 50/50 with Biocare and the 51% interest to 15% royalty with 1Life.
I'm optimistic that they will have promising results this quarter and it will be followed with a series of promising news releases to try and promote the share price to 1.45 in order to remove their debenture. If this can happen, then they'll be in a great position to use their liquidity for expansion.
How many kg of production this quarter will be indicative of how successful the orbital gardens are, how realistic management is and the direction the company is heading. It is a risk to invest in Ravenquest but considering everything they're a great company to own both in the short and long term.