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CIM: Could you give us a revenue breakdown? What % of your revenues will come from Hemp Biomass and what % of revenues will come from Purified Oil? Which have the largest margins?
VC: In order to have a full understanding of our business model, it’s important to understand our five-year plan. The first year we are focused on 89% of our revenue coming from Hemp Flower and Biomass.
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CIM: How does your economics (e.g. Per Acre Stats, Per Acre Yield, Price, Costs, COGS, Gross Margin, and Gross Profit) compare to competitors and the industry?
VC: We are able to produce more product per acre and per yield at a lower cost than our competitors. This allows for beneficial margins and an optimistic gross profit as well. If we multiple that to a multiple crop harvest per year then we can consistently produce good margins year-round. Most competitors in the United States experience an off period where a drought of product happens because of the cold winter months. During this time, farmers are not able to grow and this drives prices up as more labs, companies and processors look for high CBD product to process. Although they may be able to farm hundreds of thousands of hemp it is nearly impossible to manage the quality of medicinal product outdoors for that amount of acreage. For that reason, those products may not be acceptable for certain buyers needing high CBD cultivars.
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CIM: How do you plan on being compliant?
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VC: A strong security plan is a key to staying compliant with the CLA. To begin, we will have our entire property fenced around the perimeter. Secondly there will be a complete security compliance protocol including cameras, intelligence, armed guards, K-9 security, ex-military lead security teams and trainers. Among these requirements, included is proper tracking of our genetics, progress, activities, etc. Our licensing and ethics team oversees the complete compliance of our company regulatory division and maintain good standing in all active markets.
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