Highlands Natural Resour... Share Discussion Threads

[substp] 18/4/2019 09:54

Do not confuse cannabis with hemp production

[under the radar] 17/4/2019 21:39

I’ve seen a few videos of the District 8 grow facility on Twitter and it looks really dialled in. The plants were healthy and have been topped lots of times to make the plant bushy with multiple top colas which keeps the plants nice and squat.

They are planted in big pots so that the rootball has space to grow, which in turn leads to nice healthy/heavy flowers. It was well laid out and very clean which is very important as it means they are on top of things.

All the fan leaves were taken off so that the light can penetrate the buds, which means more air flow and less chance of pests and diseases.This takes a huge amount of time and effort especially with so many plants,so it’s good to see that they are doing whats needed to produce the best quality flower etc.

I have no doubt that the District 8 facility will be a huge success with the team running it.The ceo/founder has vast experience and does seminars with some influential people in the industry, so we are in good/proven hands.

I expect that they will produce 4 crops indoors (40,000 plants)per year instead of 3 crops (under promise and over deliver) because it’s only a 13 week cycle and that includes vegetative/flowering and the drying stage.

The big one for me is the outdoor crop...it’s massive with the potential for 250,000 plants per year.This will be more profitable than the indoor facility because you don’t need to pay for all of the electricity that HPS lights use.

The unique selling point is that they are concentrating on the high end market whilst being organic and that’s exactly where the market is heading.

All you have to do is look at Canopy Growth, Emblem Corp or Aphria to see how fast the industry is growing. They are running out of product in some States as they can’t keep up with demand.The locals are being forced to buy from street dealers once again for flowers. CBD is growing at a much faster rate than THC and is the future of this new emerging multi billion Dollar market.

In time we could become a takeover target because all of the big players that I just mentioned are taking over all of the small/medium sized companies so that they can gain market control of the fasting growing sector in the world.

We are in the right place at the right time ,with the right product. It really doesn’t get any better!


All imo DYOR

[under the radar] 17/4/2019 20:44

www.nexuscann.com/mi-seminar/

Trevor Taylor
Co-Founder/CEO of District 8 Holdings, A successful CO cannabis cultivation business

Trevor has extensive knowledge in every aspect of a cannabis cultivation operation. He is challenging the way cannabis is grown, focusing on a sustainable, pesticide free environment. District 8 is considered the leader in craft, organic cannabis cultivation. He has leaned on his past construction and civil engineering experience to design what is now considered the "standard" in eco greenhouse cannabis faci

[under the radar] 17/4/2019 20:38

Bit of research

www.enr.com/articles/43687-sustainable-cannabis-grow-facility-rises-in-western-colorado

www.thedistrict8.com/site-under-construction/

herb.co/news/industry/district-8-cannabis-facility/

[under the radar] 17/4/2019 16:11

781,000 buy just went through.


Tick Tock

[under the radar] 17/4/2019 11:38

Just bought another 100k at 9.3p.

:)

[fadec92] 14/4/2019 22:03

Difference in Cannabis plant prices between Colorado and New York, cannabis crossing state lines is illegal to transport but Hemp is legal under 0.3% THC level which Hemp plants are!

[under the radar] 14/4/2019 09:56

Cannabis companies are making their way to London to tap into a £100 billion European market and cash in on the Square Mile's so-called 'green rush' among investors.

[under the radar] 14/4/2019 09:43

Well worth reading again ...



19 March 2019


Highlands Natural Resources plc ('Highlands' or 'the Company')

Fundraising to establish an organic cannabidiol operation


Highlands, the London-listed natural resources company, is pleased to announce a fundraising to raise a minimum of £1.27 million via a subscription for ordinary shares of 1 pence each ("Ordinary Shares") (the "Subscription") and an offer for Ordinary Shares via PrimaryBid.com (the "PrimaryBid Offer") at a price of 8.5 pence (the "Issue Price") (together the "Fundraising"). The funds raised will be used to establish an organic, vertically integrated cannabidiol ("CBD") operation in Colorado, USA, through a newly established and wholly-owned Highlands subsidiary, Zoetic Organics.

This initiative follows the completion of a recent trial, which saw hydrogen from Highlands' rare naturally occurring gas operation in Kansas, discovered during the summer of 2018, applied as a natural, organic fertiliser at a cannabis operation in Colorado. Encouragingly, the gas mixture increased plant size, height, root diameter and flower count by up to 30%, surpassing expectations.

The Company intends shortly to announce a proposed offer for subscription via PrimaryBid providing an opportunity to new and existing retail investors. A further announcement launching the PrimaryBid Offer will be made shortly. The PrimaryBid Offer is expected to begin at around 4:31 p.m. today and remain open until 9.00 p.m. on 19 March 2019.

Highlights

· Zoetic Organics will target sales of organic hemp oil, retail bottled tinctures, CBD-infused chewing pouches and pre-rolled smokables into wholesale and retail channels

o Highlands expects first revenues by mid-2019 and profitability by year end

· A lease will be agreed over an extensive organic growing operation, including a 33,000 sq ft indoor facility with a potential 40,000 annual hemp plant capacity

o By 2020 Zoetic Organics proposes to plant a further 100 acres outside, with a potential 250,000 annual hemp plant capacity which, together with the development of new product lines, offers exciting expansion potential

· Highlands will appoint an experienced management team for Zoetic Organics and intends:

o To provide $2 million of start-up funding for the business during the year; and

o To incentivise the team with 5 million warrants, exercisable at the Issue Price at any time before 30 June 2019, and 12.9 million Ordinary Shares to be issued in 12 months' time

· Low-cost entry into a rapidly growing market - growing hemp in Colorado for CBD sales in that state is legal, and certain CBD products are legal both in the USA and the UK (subject to legal and regulatory compliance)

· Near term focus on expanding hemp oil operations and developing the outdoor growing facility

· Zoetic Organics will be developed alongside Highlands' existing portfolio of assets - production from the 8 wells at East Denver will cover the Company's overheads for 2019

Robert Price, Executive Chairman and CEO of Highlands, said: "Zoetic Organics provides us with a compelling opportunity to enter the rapidly growing CBD market at low cost and to secure for shareholders the value that our large, rare and valuable gas discovery creates for organic agricultural operations.

"This deal sees us bring our organic fertiliser together with extensive growing operations, and we are delighted to have raised these funds to expand and complete our new vertically integrated operation in Colorado. Our immediate priority is to advance the discussions currently underway with potential retail and wholesale partners, purchase manufacturing equipment and expand our outdoor growing, ahead of our intended harvest of our first 10,000 hemp plants by mid-2019. Beyond this we will expand our harvest and expand our product range.

"The CBD market is estimated by Brightfield Group to reach $22 billion by 2022. Zoetic Organic's operation will be totally organic and sustainable, creating a key differentiator for our products. We are very pleased to welcome our new Zoetic Organics team to Highlands and look forward to generating revenues and profits during the course of 2019."

Funding for Zoetic

Highlands estimates that the gross funding to establish Zoetic will comprise:

· Machinery: $500,000 for hemp oil distillation and pouch manufacturing machines

· Initial cultivation start-up costs: $120,000 for purchases of hemp plants and indoor soil

· Expansion of infrastructure: $150,000 for expanded gas and water infrastructure

· Opex for year 1: $1.3 million of which the main items will be salaries, grow supplies and utilities

In respect of the machinery, Highlands expects that the more significant machines will be leased with a consequent net saving on capital expenditure of approximately $300,000. Furthermore, noting that Highlands expects Zoetic to be profitable by the end of the year, the final quarter of operating expenditure is expected to be largely self-funding.

Taking these factors into account, Highlands expects the net cost to shareholders of starting up Zoetic to be in the region of $1.5 million.

Zoetic Organics

Highlands Natural Resources has formed Zoetic Organics, a 100% owned subsidiary, to establish a vertically integrated, organic and sustainable CBD operation in Colorado.

During the summer of 2018, Highlands discovered a naturally occurring source of nitrogen; which was subsequently found to include hydrogen, making it a natural, organic fertiliser. During autumn 2018, Highlands began selling this gas to an organic cannabis grower and the results have surpassed expectations, increasing plant size and production by up to 30%.

With this in mind, Highlands will enter into an agreement to lease an extensive organic growing facility from a company which has now ceased its cannabis operations. The management team have previously operated that facility, bringing with them all the skills and abilities for Zoetic Organics to commence operations immediately. To incentivise the team, Highlands will issue them with 5 million warrants, exercisable at the Issue Price at any time before 30 June 2019, and will agree to issue a further 12.9 million Ordinary Shares in 12 months' time. The Board believes that this will ensure that it secures the benefit of the up to 30% yield uplift for Highlands shareholders better than simply selling the gas for a few $ per litre.

In a rapidly growing market (the US alone is forecast to be worth $22 billion in three years), Zoetic Organics will seek to distinguish itself by producing only premium, organic products. CBD is becoming an increasingly mainstream supplement, which is available in Boots, Holland & Barrett and other high street stores in the UK.

Highlands plans to grow approximately 40,000 hemp plants per annum in a 33,000 sq ft greenhouse (a minimum of 3 harvests per year is anticipated). The land also includes the ability to grow hemp outside and Highlands has a target to plant 20 acres this year, equating to around 50,000 hemp plants, and rising to 100 acres in 2020 (250,000 hemp plants, one harvest per year). Operating at full capacity in 2020 could see the business harvest approximately 290,000 hemp plants in that year.

Highlands will target a yield of 12 grams of CBD per indoor plant and 30 grams of CBD per outdoor plant. Estimated wholesale prices are $3 per gram although the Board believes sales made direct to retail channels could be at a premium of over 5 times this.

The Board has no plans to grow any cannabis at Zoetic Organic's facility. Zoetic Organics plans to grow only hemp, taking advantage in particular of the regime being put in place under the 2018 US Farm Bill.

The business is expected to generate first revenues in the middle of 2019 and to be self-funding by the end of the year. The Board has identified a range of opportunities to drive growth through Zoetics Organics beyond this, including:

· Expanding outdoor facilities

· Expanding products for direct sale to retailers

· Developing Zoetic as a premium brand

[honestmarty] 10/4/2019 15:49

There I was thinking Twinkle Toes had built up that tan on the golf course when it was actually out in the fields.
I suppose those manicured fingers are actually green, rather than sticky.

[kemche] 10/4/2019 15:26

One of the most hones and upright BoD we have here. This is only going to end well.

[under the radar] 10/4/2019 15:21

The CBD market is estimated by Brightfield Group to reach $22 billion by 2022. Zoetic Organic's operation will be totally organic and sustainable, creating a key differentiator for our products. We are very pleased to welcome our new Zoetic Organics team to Highlands and look forward to generating revenues and profits during the course of 2019."

[honestmarty] 10/4/2019 14:43

Worth looking into Twinkle Toes CV too. You will see how his Midas touch is obviously a talent that developed late in life.

[under the radar] 10/4/2019 14:43

You can watch my wealth grow :)

[honestmarty] 10/4/2019 14:40

Under the dunce's cap.

No thanks

I think it only fair that, you, have all the rewards for spotting this unbelievably wonderful investment opportunity.

[under the radar] 10/4/2019 14:35

honestmarty,

It’s where they are going that matters!

I couldn’t care less about the past because I’ve invested in this company purely for the CBD business. I won’t be the only one doing this and that will be seen by all buys and new faces that will join the bbs.

I think you should buy in now because it looks like the overhang has gone.The market cap will only rise from this level especially when we get production details in 10 weeks time. Once that happens the market and everyone else will know how good they are at producing the CBD and exactly what income they will be generating.

[honestmarty] 10/4/2019 14:27

Under the dunce's cap.

We heard all this before for DTC and fracking, helium, ED and oil.....

[under the radar] 10/4/2019 14:25

Highlands will appoint an experienced management team for Zoetic Organics !!!


This will include a master grower and people who help him on a day to day basis. It’s worth remembering that they are in Cali which is the epicentre of cannabis cultivation.There will be untold master growers with vast experience falling over themselves to get the job.

They already have a production facility which they can use,so they will hire someone who knows how to make flowers into CBD oil. You have loads of people making Rick Simpson’s oil here in the UK so it won’t be hard to find someone in Cali.

Zoetic Organics has already signed up 30 local petrol stations with the potential of it being national wide.I know it’s only a small deal but good organic CBD will sell itself.Its the fastest growing market in the world and it’s only going to get bigger year on year.

I expect we will get told that they have someone willing to take all of the CBD before it’s even made into oil.Its all about supply vs demand and you can’t grow enough flowers to fulfill the demand of good quality organic CBD oil.

Theres not a lot of start up companies that can say “Highlands expects Zoetic to be profitable by the end of the year, the final quarter of operating expenditure is expected to be largely self-funding”.

DYOR

[under the radar] 10/4/2019 13:34

The proof is in the pudding - first crop end June. The plants must be near the end of the vegative stage by now . Most breeds take 8-10 to flower, so It will be interesting to see how many grams they get from one plant and how quickly they sell it.

They will be scaling the business up /size of grow every single year!

Mark my words

[under the radar] 10/4/2019 13:08

Highlands plans to grow approximately 40,000 hemp plants per annum in a 33,000 sq ft greenhouse (a minimum of 3 harvests per year is anticipated). The land also includes the ability to grow hemp outside and Highlands has a target to plant 20 acres this year, equating to around 50,000 hemp plants, and rising to 100 acres in 2020 (250,000 hemp plants, one harvest per year). Operating at full capacity in 2020 could see the business harvest approximately 290,000 hemp plants in that year.

290,000 plants next year - do the maths!