THE COMPANY - PAST, PRESENT AND FUTURE
OPERATING MODEL - HOW IT WORKS ?
CBD HEMP ADVANTAGES
- Agricultural businesses, unlike mining, have an indefinite life span.
- CBD hemp crops only take 3-4 months to grow from seed planting to harvesting of the mature plants ready for processing into crude distillate and isolate. Company can grow 2 crops per year on each piece of farm land.
- As a result of the staggered planting and harvesting, short growing cycle and the geographical spread of the Company’s farming operations, the Company’s revenues are relatively consistent throughout the year .
- The Company is also constantly improving it seed strains and crop yield as new CBD hemp strains and growing and processing methods become available.
- The standard joint venture agreement between the Company and the farmer is for a term of 2-3 years (6-9 crops).
- Company can assess the likely revenue and profit to be derived from each joint venture crop value in kilograms at various prices multiplied by the number of crops per year.
CBD EXPANDING OPPORTUNITIES
- Rapidly growing CBD hemp markets internationally.
- Health benefits of CBD becoming more widely understood and accepted.
- Regulations around CBD are being relaxed internationally since 2018.
- CBD Now legal throughout the USA and Canada and most of Europe and laws relaxing elsewhere.
- Expected to become available over the counter in Australia in 2022.
- Relatively low cost crop to produce.
- Relatively short growing cycle (3-4 months).
- Requires relatively little water and nutrients compared with other crops (eg. Rice).
- Over 50,000 valued uses for hemp plants.
- Can sell most components of the plant (CBD oil, crude, distillate, seeds, biomass / fibre and grain).