RGI 0.00% 22.0¢ roto-gro international limited

"By this point we're probably in November or December and have...

  1. 10,816 Posts.
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    "By this point we're probably in November or December and have started to fit out our first 10,000sq ft (or even have completed it. First harvest due Q1 2020) Cost to build out 10,000sq ft (at our cost prices!)... Let's say $3m (Investor pres 24/7/18 says $5m per 10,000 but we get it without a markup on it)"

    The Notice of AGM says initial fit out will cost C$500,000. From your figures and research I've done myself I would expect that would equate to 48 units or two growing rooms. So extrapolating that out to a 10,000sqft 10 room facility containing 240 units then we'd be looking at a total cost of C$2.5m.

    "We also owe Valens some $$ but I forget how much and there's talk of listing on the CSE. Both of these together could add up to a couple of million."

    The Supra THC acquisition deal involved paying cash of C$2m to Valens. Payment of C$400k has already been made, C$600k is payable upon grant of a processing licence and C$1m is payable on grant of a cultivation licence if these are granted prior to the end of 2019.

    I am new to these approvals so correct me if I'm wrong but going on what I've read to date it appears that most growers fit out a couple of rooms which are then examined by the relevant regulators and then if those rooms meet the stringent requirements the licences are granted.


    Okay, so this placement was the one referenced in the Notice of AGM Resolution 16 which states:

    Funds raised under the PlacementFacility will be used to build the first and subsequent phases of the Cultivation Facility, engineering design and prototype development for 8’ fully automated cropharvesting of the Company’s organic perishable food gardens, continued researchand development of the Company’s products and crops, hiring additional salespersons and for working capital.

    As per Resolution 16 the company had 3 months from the date of the AGM (28/2/19) to make the placement of up to 15m shares and could have issued shares as low as 80% of the 5 day VWAP.

    As this resolution was approved by shareholders it still leaves the company the option of issuing an additional 25% of shares on issue within 12 months without needing further shareholder approvals.

    Not having been a shareholder until recently I was not fully aware of this, which is why it pays to do your own research. Pity the Notice of AGM is 113 pages long, lots to read there. Having now read further on this matter I retract my criticism of the board, as this was in the pipeline and appropriate approvals given by shareholders at the AGM, so the board were entirely transparent in this matter and therefore my criticism was unjust and unwarranted.
 
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Currently unlisted public company.

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