Sunniva Inc SNNVF

New Canada campus construction video

[GOTMONEY]

https://www.youtube.com/watch?v=pWiKqKvzhqA

Looks to be past the grading stage

[want2retiresoon]

Good to see ! same team that's building in Palm Springs is heading there next- probably start the building in Sept 2018 ?

[GOTMONEY]

Way sooner than that - they already have much of the construction materials on site (not shown in the video)

[LifeGoesOn1973]

how do you know money. Do you live in the same area? Does it mean the land sale is closed?

[GOTMONEY]

We are members of the Sunniva Investors Group on Facebook and the person who shot the video, Laureen Heisler, is a fellow investor and local resident at Ok Falls. Along with the video, Laureen also posted several pictures showing many rolls of rebars, stacks of what appear to be metal sheets and other construction materials. It looks like the beginning of construction is imminent - likely to begin

[GOTMONEY]

P.S. You will notice in this Investor Fact Sheet" released (updated?) today, June 16, that it is stated that "Construction commenced for Canadian Facility". https://www.sunniva.com/wp-content/uploads/2018/06/Sunniva-Inc.-Fact-Sheet-June-16.pdf

[Bluechip2]

excellent coverage GOTMONEY. Dr. Holler must be a very well respected man in those parts. I have never seen a company have the latitude to carry out all those activities on a property that they didn't own yet. They have literally saved at least 4-6 weeks on that development. For anyone doubting their execution on this, including financing, this gathering of the troops to accomplish this feat

[GOTMONEY]

They are truly advancing on all fronts: the California and Canada greenhouses, extraction, vapes, clinics...there is no area where they aren't progressing. Their execution looks to be as good as any company in this sector, including Canopy.

[LifeGoesOn1973]

thx money I appreciate your updates. I am a long term investor here and keep adding whenever I can. Impressed with their management and I hope financing will close soon. This will de risk a lot

[Bluechip2]

except Sunniva is in Canopy's market, but Canopy is not in the US... These two will mege and become the largest cannabis conglomerate in the world.. you heard it here.

[Bluechip2]

and one tip that always pays off is I'd betting on a merger always buy the smaller market cap company which is why I cleaned out of CGC and over indulged here.

[JMark80]

There are a number of reasons why Canadian companies haven't had much interest in the US. ~70% effective tax rate compared to ~20% (tax code 280e), low barriers to entry and production limits, distribution challenges, etc.  Sunniva4Life said I was too stupid to understand how Sunniva's convenience arragements would not have a material financial impact, compared to owning 100% of

[Subchimes1]

Almost all cannibis retail outlets, are growing their own cannibis, maximum profits, would be nice to see Sunniva make a move in that direction, either retail, or medical clinics in California, somewhere where we could move our products. I like others feel dooped getting in at the beginning at a way to high price which we may never see again, with big dilution more then likely coming soon. Damn

[ThePDawg]

Can you please explain why you feel duped?

[GOTMONEY]

The barriers for entry in California are going to get a lot higher starting July 1, when the State is beginning to enforce its regulations. Likewise, the other issues you've mentioned belong more to the past than to the future, and so this particular part of your discussion is less relevant for Sunniva. Remember, this is still a new and evolving industry and Sunniva is coming into the picture

[JMark80]

Thanks for the reply GotMoney. Are you sure that's how the tenancy agreements work? Sunniva has said verbatim that they will be buying back fully grown plants from the tenants, which makes sense because they can only own ~20% of each licence. Sunniva will lease space and bill each tenant for space/utilities/labor. That cost is ultimately paid for by Sunniva when they buy back the plants, so

[GOTMONEY]

JMark, consider this again. Sunniva buys back the fully grown plant. At that point, they own the plant and can pass it along to distributors/brands or distribute it themselves, wholesale or retail. But what happens before that - who grows the plants? Sunniva does. Sunniva carries out 100% of all the cultivation and production work. So this means labour and utilities, automation, control systems

[Bluechip2]

exactly GOTMONEY. In Canada, there are these wine kit stores all over that work the same way. The companies do not have a permit to sell alcohol. But provide a one stop shop, simply pick your grape juice, everything else is done for you, come back at harvest time and pay for your hundreds of bottles of wine, damn Canadians eh?

[JMark80]

I understand that, but still think the only way the convenience arrangements will have a minimal impact on revenue is if licensees are in name only. What happens after 5 years, phase 1 growers are kicked out? I think Canndescent was just a rumour anyway - they're building out to 100k sq ft this year, are experience growers who already have brand equity and distribution. They don't need

[GOTMONEY]

Says "I understand that"... then proceeds to demonstrate he didn't understand it at all. Look, if you're worried about what's going to happen 25 years from now, you can probably wait a month or two to get all the details. Personally, I'm satisfied with managements' explanations. 

[JMark80]

Of course I understand, are you sure you do? You were the one who said tenant agreements were akin to supply agreements which is completely wrong. They're mostly a middleman, they likely won't make anything on 70% of phase 1 production, only re-selling. Tell me why a company like Canndescent needs Sunniva? And yes, given their valuation they should own Cathedral, or at least have a CAPITAL

[LifeGoesOn1973]

JMark, Sunniva already mentioned that these arrangement details are undisclosed considering them a business secret, but and most importantly the bottom line financial impact on SNN is negligible. I doubt you will ever find anyone here or outside the company who knows exactly how these arrangements are done

[Bluechip2]

we supply them with a propagated plant of a certain strain and we take back a mature, fully grown plant. Each room has a different address, different license, its own power supply, water, and so on to comply with all the regulations. The fact is our structure complies fully with the California regulations and at the same time enables us to operate virtually as if we owned it all. At the end of the

[LifeGoesOn1973]

jmark80 tax code 280e does not apply to corporations in California or LLC that wants to be treated as corporations. So Sunniva is not impacted by this law. On the contrary it impacts small businesses like sole propriaters and partnerships and this reduces the competition to sunniva.

[URLaughable3]

Can you source this? I read over the taxation across the different levels, but wasnt positive on how they applied to sunniva selling direct out of the facility, while also outsourcing, and sales via the extraction facilty. 

[LifeGoesOn1973]

yes, here is a link "https://www.ftb.ca.gov/businesses/cannabis-business-tax.shtml" remember that Sunniva subsidiaries in the US are all LLC . so you look for that in the link I provided . basically this 280e does not impact CORPORATIONS operating in California. it impacts the small business. if you google corporations and 280e you can see other links mentioning that general expenses are

[JMark80]

280E is a federal tax law.