Captiva Verde Comprehensive Update
Coquitlam, British Columbia--(Newsfile Corp. - November 1, 2020) - Captiva Verde Land Corp. (CSE: PWR) (OTC: CPIVF) (the "Company"), is pleased to report an update on all of our major operating business segments plus our recommendation of a financial newsletter written by an award winning portfolio manager.
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Solargram Farms ("SGF")
SGF just completed its 1st year harvest in Renauds Mills NB, growing 13,000 plants over approximately 20 acres within its Health Canada 50 acre licensed outdoor cannabis cultivation footprint (total 130 acres land package for future expansion). SGF averaged 1 person per acre from the grow team to grow the first year harvest and made approximately 95% of the operating costs, variable costs.
SGF obtained its cultivation license on June 26th in the middle of the Covid19 Pandemic and successfully planted, nurtured, and subsequently finished the fall harvest last Sunday. SGF has harvested approximately 16,000kg of cannabis which will yield approximately 3800kg of dried cannabis. SGF has purposely planned produced approximately 500 to 600kg of cured dried flower within the larger harvested product this year, that is destined for bulk sales to customers over the next 4 to 6 weeks that will commence the monetization of sales. This initial planned sales represents less than 15% of the harvest volume that will generate over $1.6 million in sales that is expected to cover all of the 2021 forecasted operating expenses before commencing producing the much higher valued, oil extracted based cannabis products that have been requested by our customers.
The balance of the harvested product has now been milled and will be sent to the extraction partner for oil processing as soon as SGF's obtains the Health Canada sales and processing license which is expected within six weeks. This processed oil extract will allow SGF to produce planned scheduled products that will satisfy the customer's request for product. The first year estimated sales will be in excess of $15,000,000 starting early 2021 at a forecast 60-70% gross margin. The two main harvested genetics which comprises 85% of the crop has initially tested 19%-22% THC which is a major win for such a large outdoor grown crop. Further broader representative sample testing will be done once the harvest is completely dried within another week which we expect will be within the same relevant range previously obtained.
SGF's has commenced growing the 2021 season mothers and clones and expects to produce 20,000 plants with very low additional capital costs, expecting that will in fact more than double the 2021 production yield and sales on the same 2020 production footprint.
We remain a debt free company and, as a result, will be able to provide shareholders with a significant return on investment once sales and profitability materializes in 2021.
The final Planning Commission approval looks like it will be on December 9. After that date we wait 45 days and we can begin construction. We have over 200 families on the waiting list to purchase homes and we have engaged Keller Williams - Paul Morris Forward Living to sell our remaining units to the 1 million people who live within a 40 minute drive and a further 25 million people who live within a 2 hour drive of the subdivision.
We expect the entire 1,000 units ($400 Million) to sell out and this upcoming Planning Commission approval is a game changing event. Entry Level Real Estate prices have soared and demand is very high as California is short 2.4 million entry level homes.
Our new pharmaceutical manufacturing plant structure is completed. We have 3 more weeks of electrical, plumbing and finishing touches. We have generated an equipment list and the final step is purchasing and installing the manufacturing equipment. We expect this completed by year end which is to fulfil our USD $142 Million yearly sales contract with the Health Care Workers Union.
We have designed some product for Asia and getting very positive feedback on the product quality. Working towards the next steps of larger acceptance by various groups in Asia. Miss Envy is providing both Mexico (Esmeralda) and Solargram with product strategies and assistance in preparing for revenue sales in both Canada and Mexico.
On Behalf of the Board of Directors
Cautionary Note Regarding Forward-Looking Information
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include regulatory actions, market prices, and continued availability of capital and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/67309