A real Canadian MMPR - Financial Info wated, Investors / Partners / Top Jobs WANTED

This is the kind of thing that's going to create some disconnect between the "legit" companies with a long term plan....which in this case (brand new industry) has real legs ...I'm from Canada and currently in the initial stages of applying for HC liscense......therefore I keep up on most companies both in the US & Canada.....My background is finance / financial statement analysis.....and all I can say is SHIT there is going to be a lot of these "big players" crashing down!!!! This example isn't the exception to the rule.....rather it's the rule!!!

http://www.forbes.com/sites/nathanv...-says-his-penny-stock-could-be-a-little-high/

maybe just stick with spuds instead of buds ?

Get to 50 posts so we can pm or pm me.

Well, without saying too much I'll tell you right now there are reasons for a lot of the methods that increase your overhead. It's hard to design a grow operation without knowing how to grow.

The most important thing for your company is going to be your first hire. You'll want a grower and you'll want to listen to them when it comes to the designing and planning stages. A lot of what they're going to recommend is going to be very expensive. I've had a couple people I know find jobs through advertising - grower advertising usually involves putting pictures in magazines like Skunk or High Times or by repping their internet forum of choice. Looking at those places will get you some names to choose from, but it won't tell you nearly as much about their growing skills as you'll need to make a good hire.

with 1.5m I take it you're planning on about a 10-15,000 square foot building? I'm guessing you'll need at least 10 NEW employees to get that going, and that's assuming 8 of 10 are experienced in the grow industry, one has a PhD in Chemistry, and one's a CPA. Could be a lot more depending on how good they are at what they do. Some of the locals around here were talking about needing 40 people for a building that size.

I'll just say you guys have a lot more balls than I do. These plants are delicate if you're trying to produce top quality product. If you find someone, ask them for a representative sample of their work and get it tested at a lab. See if they can do what you want quality wise on a small scale first. But even then you will run into a ton of problems specific to the scale you're working at. Rather than looking at how much you think you can make in the new year, you should be working out how you're going to get through one year of business. That's not going to happen if you can't get high quality crops off regularly and efficiently.

Finally, you're talking about tanking the price to consumer in years to come. I think once you get involved in the business for a while you'll figure out why that's not feasible without KILLING product quality.

For reference, I'm looking at starting a related business as well, but I'm estimating running costs for us are going to be $600 per pound minimum. Could be up to $1000 per pound depending on the dialing process. That's from an experienced small scale grower's perspective (because who else will you find to work for you with a clean record) with interest free financing and very cheap power. Once you get further into your licensing process you're going to butt up against another two dozen running expenses specific to the new industry... and that's before every contractor tries to cheat you. I'd be REEEEALLY careful about pitching your projections (or money guesses as I like to call them) to growers who may have the means to double check them. Anyone YOU want to hire can and probably will verify them and won't work for you if you're expecting them to spin gold out of flax.

FWIW I don't think the cost of production's going to go down much. The government's just going to keep eating our margins until we spend 500 to make a pound and sell it for 550 after taxes. I'm betting they jack the taxes incrementally over the next decade until the industry standard is comparable to other vice industries... which will still be nice for an established business, even if it's a fraction of current values. I doubt the cost to consumer will change though. That comes out of big brother's pocket. We'll see.

HUGE said:

Dont worry OP I am just as confused as you. Yortbogey I mean no offence but you should have a mod meeting with payaso and figure out what exactly is and isn't allowed.

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YES, agreed...WE have, thats why this forum now exist...
for idea's, and input just like this...

believe me... we monitor all the vendor's and legit bizniz endeavors...
if they don't meet the icmag guidelines as per {skip}... then they wouldn't be here active and posting...

Being in the industry and seeing how a few of the other MMPR companies have so far made mistakes.

My biggest suggestion is watch out for Big talking jamokes who were poorly running big chicken barns on MMAR licences. 95% of the people approaching you to advise on growing techniques will be this type of person.

If you can, import somebody from Switzerland who was doing largescale in the late 90s, early 2000's while it was semi legal there to do that.

They have been some of the best at scaling Cannabis to a Macro level of production.


So far I've seen big big MMPR licencees like Tweed using growing techniques as if they were a jean jacket wearing hillbilly from Prince George.


Seriously though, watch out for the "grow experts"

Yeah I was thinking the same thing. If you need a grower you want to contact them. You don't want them responding to your ads. Sorry if that wasn't clear. Different methods and equipment are more popular in different areas so if you have a method you're thinking about then you may want to narrow your search by geographic region that way.

RubeGoldberg said:

Being in the industry and seeing how a few of the other MMPR companies have so far made mistakes.

My biggest suggestion is watch out for Big talking jamokes who were poorly running big chicken barns on MMAR licences. 95% of the people approaching you to advise on growing techniques will be this type of person.

If you can, import somebody from Switzerland who was doing largescale in the late 90s, early 2000's while it was semi legal there to do that.

They have been some of the best at scaling Cannabis to a Macro level of production.


So far I've seen big big MMPR licencees like Tweed using growing techniques as if they were a jean jacket wearing hillbilly from Prince George.


Seriously though, watch out for the "grow experts"

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So just how many big talking jamokes with converted chicken barns are out there? You mean I'm not alone?!
Seriously though, I'd say finding a Swiss expert to fit the bill for a large scale LP would be more than problematic. There are plenty of Canadian experts, no sense bringing in foreign workers unless they are simply hands. I bet those hands won't be Dutch, lol.

I think there is too. If you were to add an agrologist, together they make the best 1 person, plus they would feed off one another... continually learning and in turn providing higher standards

Ron, which province are you located in?
Edit: I may have something to offer you. However I'm willing to communicate on a personal level only. Let me know if you and your business partner are able to travel in order to discuss this matter. If you are able to comply I will post a disposable number that you may reach me at. Any business related discussions would have to take place on an inter-personal level.

Email me at islandgreenpei@gmail.com....i cannot figure out how to leave a visitor message

Do you have stabil and proven strains already?

Honestly with some of the groups who are well ahead of you but not licenced I would be leary at this point of sinking any money into it with the intentions of selling to a Canadian market.

Now I know of one LP who is hoping to be licenced in the next month with 200lb/month contract to export hinged on getting their licence and all the approvals afterwords... If you are looking at anything I would concentrate on this angle.

rongillispei said:

Email me at islandgreenpei@gmail.com....i cannot figure out how to leave a visitor message

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You need 50 posts to private message

blastfrompast said:

Do you have stabil and proven strains already?

Honestly with some of the groups who are well ahead of you but not licenced I would be leary at this point of sinking any money into it with the intentions of selling to a Canadian market.

Now I know of one LP who is hoping to be licenced in the next month with 200lb/month contract to export hinged on getting their licence and all the approvals afterwords... If you are looking at anything I would concentrate on this angle.

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The best thing about export to US market is that it demands quality. There is plenty of medium-low grade product in the states already. I dont see anyone wanting to import tons of "beasters".

VagP is your man.

If you want thousands Upon thousands if pounds of beast I'm your man. No boutique quads for me. It's all about the cash.

^hahah nice sell!

wish i had 1.5mm to invest in a business. sounds like you got all the legal ducks in order you just need an good reliable cash cropper with knowledge of every aspect of cannabis from growing to trends to markets, etc…

I'm sure the AG guys who have been growing greenhouse roses and other crops have good farm experience but they will be lacking in other areas. you can do 10 lights or a 1000 lights there will be large learning curves for both….

when it becomes legal in CA i hope to provide this kind of service to a large scale team.

do you really want to play the game? It be tough. as you see.

it be out there but we are not going to give it to you for free.as much as we love it and want to get it out there..

bobthegrower said:

it be out there but we are not going to give it to you for free.as much as we love it and want to get it out there..

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Not sure I follow, give what for free?

SORRY FOR THIS rant, but I get talking / typing and can't shut up.....
This started with wanting to simply touch on the above comment about the producer who's largest market will be the US and other medicinal markets…..but ended up being a take on what I believe are going to be huge issues to play a role in the LP market here in Canada...

First, I don't see the injunction being lifted in favor of the markets rather it'll side with the patients, as the original program was created due to the supreme court decision basically forcing the government to allow for "accessibility to affordable medication by way of medicinal marijuana"....to overturn that in addition to the added burden of the recent injunction, if talking to Legal professionals or others in the industry on either side of the argument but a realistic take, is that it’ll be basically impossible (and unheard of) reversing the original Supreme Court decision, or even if it was limited to the current injunction, a constitutional challenge would be near impossible as the costs of buying “the new way” is NOT what would be considered fair and reasonable for most Canadians to have access to……

Therefore, as a group vying for the coveted HC license to become an LP in Canada we regard this as a positive for our plan!!! Due to not being in the market as it sits and still able to change strategies (though our small operation we feel we can sell all inventory either domestically or by exporting, which was also in the plan all along) …..But the big problem we perceive, numbers drastically different, is going to result in some substantial market based changes, which at best will result in revised projections for current licensees and at worst, outright failure of some of these SUPER GROWS as I call them (100,000sq ft up to 400,000 sq ft) …..just based on their projections of nothing like this happening and using very aggressive numbers…seeing as the Canadian market could now be argued, as (positive) possibly half or (likely more realistic) less of what was the expected customers available in year 1 was to be…. which at its best was still only 37,000 customers …Even when that was the outlook, if one was to take the combined “forecasted” production amounts for just the 12 current companies granted HC approval, it’s going to result in a potential MASSIVE over production (supply) of pot for the “Canadian” medicinal market ...which begs the question (even before considering the court’s decision) Where were these numerous 100,000 sq ft facilities sell off this “excess” inventory??? (i.e. One company has come out saying they’re first year will see 1.3million pounds produced, extrapolating and transferring to other producers, were talking over 15million pounds of product…..WTF?????)

Whatever the answer, it’s consequences will absolutely result in some companies changing their approach, forecasts and strategic / long term plans and how they are to survive in the short term from cash flow perspective.... because it’s likely to result in massive negative cash flow situations for these SUPER grows and in turn forces the hand of the company, where either they’ll be forced to seek additional investment dollars to fund operational losses while they figure out what they’re going to do with all this extra inventory / production capacity…… or b) In some cases, will result in entire operations being shuttered as there is just no way they can survive as things are currently even if they can survive for a couple years….. but rather as things are right now in with respect to demand / patients to be customers…..the domestic market that most were counting on and used to justify super grows, isn’t feasible….other strategies are now a necessity and from the market reaction, seems as though most if not all were caught off guard…..why this particular risk was in my opinion, completely discounted as a non starter is beyond comprehension as a banker and entrepreneur……… even in a perfect world for them, had the courts not been involved and things went off without a hitch April 1, Still leaves me with a lot of questions / issues with the huge grow op plan, financially and strategically, pricing, long term plans among other issues….

If NEW updated forecasts aren’t what were relayed to the public and investment world as a means to secure the financing they required to get up and running for the April 1st deadline, it’s substantially added more risk as there will be necessary changes that will need to happen in fairly quick succession in order to current producers to quickly adapt their original plans……However, even the larger operations that do adapt, one example is by scaling WAY down, is also still very very risky for them as debt structure / repayments were based on numbers that are no longer usable, which then could lead to trigger(s) problems for them depending on covenants attached to debt / investments and (which I’m sure most if not all would have due to the risk associated with even the brightest of outlooks) how will they repay / increase value for investors .....if for example, the means by which they were to repay their debt for a $20million mortgage now that they are producing at even half, of their expected amounts???……risk just keeps increasing as a SUPER grow……even though it’s a short term fix (lower production), the possible breach of covenants, is bad news for current owners / investors in the industry….

All that negativity being spewed by me, I believe NEEDS to be quantified as one considers truly trying to attempt to build a profitable long term going concern and now for sure needs to be factored into any operations projections (as thankfully we've been using in our plan since we started and should only result in a slightly higher risk factor for our strategy)

This all will in turn not only create a more stable and predictable industry, but in essence forcing some of the intangibles in the industry to become as important as they always should have been (grower, experience, current library of clones / products, understanding of the medicinal benefits of those different strains, continued R&D as occurs in any other pharmaceutical operation etc.) instead of the "home run" people are seeking through investing ….The companies listed on the OTC markets is another topic I'm going to rant about next......

Anyway, lesson of all this crap.....bigger is not always better, especially in any new industry where there are so many unknown variables that cannot be accounted for as of yet and usually shake out over the first 2 - 5 years......The Canadian SUPER grows are a case in point that couldn’t have been better!!!!!!!