The Company - Past, Present and Future
Business Operating Model - How it works?
Building a portfolio of high quality CBD and hemp assets
across a number of market segments.
FOR PARTNER COMPANIES
- Lower risk model for Botanic Wellness and its farmers.
- Provides farmers with CBD seeds for hemp growing
- Assists farmers with harvesting, processing, marketing, distribution and sales expertise and network.
- Gives farmers greater control and an added incentive to achieve more successful CBD and hemp grows due to the sharing of returns.
- Expedited negotiation of agreements due to lower costs and reduced risk of planting a new type of crop.
- Provides farmers with access to Company’s international marketing and sales network.
- Provision of additional expertise and experience in the sector.
- Exposure to a wide range of fast growing CBD and hemp and related businesses.
- Diversified USA, European and Australian CBD and hemp business in operating in all sectors from “seed to final product sale”.
- Risk shared by the Company and the farmer (no debt).
- Attractive cash flow model as payment for growing, processing and sales and marketing costs is not required until revenue is received.
- A number of strategic acquisition and other opportunities in a very fast growing industry.
Agricultural businesses are renewable have an infinite life span.
Hemp crops only take 90-100 days to grow from planting to harvesting for processing into crude, distillate or isolate. Company can potentially grow up to 2/3 crops per year on the same land.
As a result of the staggered planting and harvesting, short growing cycle and the geographical spread of the Company’s farming operations in the southern and northern hemispheres the Company is growing somewhere at most times of the year.
The Company is constantly improving it seed strains and crop yields as new hemp strains and improved growing and processing methods are discovered.
The commercial farming agreements between the Company and the farmer are generally for a term of 2-3 years (6-9 crops).
The Company can assess the likely revenue and profit to be derived from each commercial farming agreement / crop (Calculated by the likely value of the crop in kilograms at recent prices multiplied by the number of crops per year multiplied by the number of years of the agreement) and work out the total value of the agreement and then arrive at a Net Present Value (“NPV”) of the agreement to the Company.
The Company’s hemp based bioplastics business represents a significant opportunity for the Company as it utilises the Company’s hemp fibre waste in the production of replacements for a wide range of single use plastic products (cutlery, straws, food packaging, bags, bottles etc) which due to recent regulatory changes are being banned around the world.
Rapidly growing CBD and hemp market internationally.
Health benefits of CBD becoming more widely understood and accepted
Regulations rapidly 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 during 2023
Relatively low cost crop to produce in terms of water and nutrients.
Relatively short growing cycle (3-4 months) and requires relatively little water and nutrients compared with other crops (eg. rice).
Over 50,000 documented uses for hemp seeds, extracts and fibres.
Can sell most components of the plant (CBD crude, distillate and isolate as well as seeds, biomass, fibre and grain).
Opens up revenue opportunities in the carbon credit market due to hemps carbon sequestration properties