CC: Upon completion of Phase 3, the Company anticipates being able to produce 10,000 kgs of cannabis per year at anticipated gross margins of 60%. Under current market conditions, this would give the company the ability to be a self-sustaining, free-cash flow entity. Having said that, this is a young industry that is constantly changing and we often revise our estimates based on new industry conditions or opportunities. As our company scales up, larger opportunities can present themselves that may require additional capital investment over and above what current cash-flows can provide.
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CIM: What are the advantages of insiders owning such a large % of your outstanding shares? Or benefits of your stock being tightly held?
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CC: Our large insider ownership percentage helps to ensure that the interests of management are aligned with the interests of all of our shareholders. A new investor can have confidence that our management team will continue to act in the best interest of the Company as they will also see a direct benefit from the success of the company.
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CIM: Average volume is quite low. What is your Investor Relations strategy going forward? How do you plan on increasing liquidity?
CC: One downside of our high insider percentage of ownership is that we have seen lower trading volumes to-date. In August 2019, the Company engaged the services of a market maker to help provide increased liquidity, increased opportunities for new investors to acquire shares and to help provide a natural flow for the stock that meets investor demand.
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INVESTOR RELATIONS
Travis McIntyre
1-888-STI-GMA1
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