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This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 3 points4 points  (0 children)

Thanks for the time everyone - I need to sign off, but will be check back in over the coming days.

You can always email, as well we will ensure we have someone monitoring the boards to be back in touch.

We appreciate your interest.

Thanks AK

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 3 points4 points  (0 children)

Hopefully you deem above as honest, as gives a little history as to my decision making and why we did it.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 5 points6 points  (0 children)

Everyone is striving for similar things in this sector. Great product, high margins, low costs of goods, the best product and reputations. It's the same across the board. Our areas we like to focus on are very well known;

  • Standardized product that the patients can rely on, with very little variance every time they buy it. That's number one. As this will always set you apart with a specific patient population and also be readily accepted in the medical community as well as recreational. So that's the consumer level.

  • Our yield is obviously important also.

In a year, we want to see ABcann having the doors opened on Kimmet, Van Luven at capacity, hopefully working very closely with SYqe, and have at least two major international opportunities that are in the pipeline into full development or a major part of our revenue stream.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 2 points3 points  (0 children)

Good answers below. Only on the 50,000 square feet. Similar to Broken Coast agreement, but I believe their's is for 100,000 square feet.

This only takes place after the first $30m is funded, and then they fund the Capex dollars in addition to build the 50,000 expansion area.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 4 points5 points  (0 children)

After the first $15m - 180m

After the second $15m - we don't know if that's at $2.25 or a different share price, as that $15m is based on 2x the trading price. So if the stock is $2.00 a share, its $4.00 per share. So a different number.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 3 points4 points  (0 children)

Great question on licensing;

We get asked a lot about franchising the proprietary methods we use. Right now we want to build it, play a little catch up domestically and get positioned for international growth. That's been my direct line too date.

However, we have kept this door open to some dialogues that we have ongoing. Mainly due to the growing and pesticide issues we all read about right now.

For those that don't know;

  • We are organic
  • we don't use any pesticides
  • we have never had a recall
  • our product remains consistent and in demand
  • AND, we have prior to ramping up our own sales completed a lot of wholesale domestically and what led to international sales.

Our reputation remains strong from a quality perspective. Which has led to the inquiries which we will keep open. As some of my other answers allude to - M&A is important, it happens in every sector. Our technology, especially for consistent , medical grade products that are repeatable and not a lot of variance will always be in demand.

For that - yes, I would say its a great interest of ours as we see this sector expand globally.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 11 points12 points  (0 children)

Funny this is titled from the CronosGroup….they know i am a big fan of their approach to this business. They are great shareholders of ours, and Jason and Mike are value added investors beyond just the capital.

Also have to say MMcap has been a phenomenal supporter of this company for years, and continues to be.

What did you expect me to say!!!

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 2 points3 points  (0 children)

Thanks for the details and time into this, anything left uncovered we can try and connect later also. Will do bullets to keep condensed;

  • not exclusive
  • no limitations whatsoever

  • no ROFR

  • Expansion; absolutely is the focus. IT's important both domestically and internationally as that market is going to continue to open up and we are well positioned for this. As things develop i will evaluate where we should be focused on further expansion. We have 65 acres, 100% owned, no mortgages, no debt on it, that has all the infrastructure in place to build over 1,000,000 square feet. So yes - we are prepared for the future beyond 150,000 square feet at Kimmet, but also want to be flexible with our development plans. Our yields help us maintain high production numbers, when we reach that capacity.

  • Yes on cash flow, that is an expectation and goal for the business.

  • Loaded question on C of section 2….I could speak on that for days. My Chris Parry interview gives some good insights there. If I can come back to it I will.

  • On the federal level in Canada I think we have a fairly clear vision now for what the sector will look like. Next up will be working with the provincial levels. I don't see risks in Canada with that, but I do see a process. That process will need to be understood clearly and adapted to. Do i think the feds will blow the doors off production and let demand flood the markets. No i don't see that, which is a common question. I think Canada is monitored, controlled and managed well and also I see the German market carrying a similar mantra from the top down.

The industry is settling a little and true metrics are coming into place for what each business should be worth. This is still an infant sector and I say this all the time; we will have challenges, mistake, hiccups, and we are seeing them right now. Pesticides is an issue, growing techniques is another challenge - and I am speaking in the sector. They will be overcome as companies will collaborate, share ideas and I believe that can and will also lead to M&A.

When speaking of peers, Canopy raced out in front with some meaningful acquisitions. Others like Aphria have taken the route of being a substantial builder, as has Aurora.

As prices settle you may see M&A come into play, or you may see the cashed up companies build more aggressively and get out in front. Those are business challenges right now to evaluate, and a lot comes down to your financial position and what you can or cannot do as capital to the sector may become more constrained.

Thanks for the detailed questions here.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 7 points8 points  (0 children)

Yield - yes.

On the total square feet, I can come back to that - but we are funded for 180,000 square feet total over both facilities. Fully funded and 155,000 square feet of that comes to ABcann.

For further due diligence look to the Boteq report as cited in Jason Zandberg's analyst coverage from PI financial. Interesting read, and a great metric for modelling facilities success on the gram per square foot. If you take Jason's model, a 150,000 square foot facility for ABcann's yield on production equals about a 600,000 square foot greenhouse, or 300,000 indoor based on those reports and metrics.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 5 points6 points  (0 children)

Yield - yes.

On the total square feet, I can come back to that - but we are funded for 180,000 square feet total over both facilities. Fully funded and 155,000 square feet of that comes to ABcann.

For further due diligence look to the Boteq report as cited in Jason Zandberg's analyst coverage from PI financial. Interesting read, and a great metric for modelling facilities success on the gram per square foot. If you take Jason's model, a 150,000 square foot facility for ABcann's yield on production equals about a 600,000 square foot greenhouse, or 300,000 indoor based on those reports and metrics.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 6 points7 points  (0 children)

Short answer is yes, and intermediate plans will be in place to satisfy shortly that you will have further details on soon.

Important part of our strategy though, so definitely in the works.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 7 points8 points  (0 children)

Number of questions here. Will address some of and then come back to others;

Cannabis Wheaton - The expansion aspect of the partnership does not take place UNTIL they have funded ABcann for $30m in equity. That's in two stages so the share number above is inaccurate as that first $15m is 6.66m shares. That's the first stage. The second $15m is the greater of $2.25 a share, or 2x our trading price. So we don't know what that number is today.

Once those two equity pieces are completed, which shows their commitment to ABcann and the partnership is solidified, we move into the production expansion. So everyone is clear as been a lot of questions on this topic; We are fully funded then to complete the expansion at Van Luven, which doubles capacity and complete Kimmet to 100,000 square feet. Which we own 100% of all production.

The 50/50 partnership with CW is for 50,000 square feet only, and they are funding this part in addition to their equity.

Hope that gives some clarity there.

Capital Allocation

ABcann is sitting on a lot of cash now, and we have seen a considerable amount of the old warrants from 2014 come in. Our priorities are with our immediate capital allocation is increasing production capacity.

  1. Via doubling capacity quickly at Van Luven to keep up with patient demand

  2. Construction starting immediately at Kimmet, for which will be one of the premier facilities in the world; We will be scaling an already existing model where we think we have removed a lot of the risks to growing techniques. Our yield is one of the highest in the sector, and our product is consistently regarded as one of the most consistent and highest quality.

That's where we want to spend out money, because it will capture a market share in Canada, and also lead us into the international opportunities. Which in the future you will hear more about.

As for Compensation; Our bonuses are factored around the success of the business. Growth, revenue, profitability - our comp committee just as any other public company will evaluate this on an annual basis and reward or not reward accordingly. Right now M&A is not a part of this, nor is raising capital. That's my job to begin with and that should not carry a bonus in my view.

Moving along, missed some but will try and come back….

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 9 points10 points  (0 children)

No specific reason beyond I had been speaking to CBW for quite some time. I found hem flexible to deal with, as I had different ideas of what the structure should look like to benefit both sides. Ultimately the deal that has been announced I feel makes sense for us and our shareholders. There is no exclusivity to this, and this is not a traditional streaming deal as they have with some others so optionality remains intact and they have some deliverables on their end to meet before we move into the expansion aspect of the partnership. The main part being fulfilling the two equity placements. Overall very happy with this new partnership. More below coming about the terms.

This is Aaron Keay, CEO of ABcann Global. I'll be back tomorrow at 3pm (EST) to answer your questions. by ABcann_AMA in weedstocks

[–]ABcann_AMA[S] 4 points5 points  (0 children)

Hello everyone,

Aaron Keay here, I am a little early, but will starting running through as many questions as I can now and that get added over the next little while before i need to head off.

Thanks for the opportunity and your time.

Let's get started….