Letter To Growblox Sciences, Inc. Shareholders From Its CEO
Growblox Sciences, Inc. (GBLX)
Dear Shareholders:
Since being appointed CEO just three months ago, I have confirmed that this Company is everything that I thought it might be, and more. In Growblox, I found a company with unlimited potential. All that was necessary was to sharpen the focus of our efforts. Our decision was to prioritize the creation of near-term cash flow by building out and opening our 28,000 square-foot cultivation facility located on West Teco Boulevard, Las Vegas. In that connection, we have received every approval from licensing and occupancy permit that we have sought to date, and we expect to have our first crop growing in our state-of-the-art pharmaceutical grade cultivation rooms by October 1 of this year. Our first harvest will be approximately 10 weeks later.
The Teco facility with 200 lights will produce approximately 110 pounds of cannabis per month, and at that rate will generate approximately $250,000 in revenue per month, or $3.0 million per year. Over the next 18 months, we will expand to approximately 1,000 lights meaning that we can produce approximately 550 pounds of cannabis per month creating a company with run-rate revenues in excess of $15+ million per year, perhaps as much as $20-$25 million per year depending on plant yields and wholesale cannabis prices. This is from Teco alone. We have additional licenses to develop and, when recreational use is approved in Nevada in November of this year, we will be positioned to significantly increase our production, sales and revenues. Why? Because Las Vegas has over 44 million visitors a year, a number that is likely to increase with the availability of recreational cannabis. This will exponentially expand the size of the total Nevada cannabis market.
We recently entered into a non-binding letter of intent to acquire a majority interest in a production license and two additional cultivation licenses. We expect to finalize these agreements within the next two to three weeks. The production license will immediately give us the ability to convert our plants into products and increase our revenue because processed products such as vape pens and oils provide higher margins than raw cannabis flower. Also, the additional cultivation licenses will provide opportunities to streamline production by providing locations for tissue propagation and “vegging” young plants. We can devote all 200 lights at the Teco facility to “blooming” finished plants (blooming is the final stage of plant growth before harvest).
We expect our products to compete well in the marketplace because of the considerable efforts we have made in the plant genetics and tissue culturing of our proprietary strains of cannabis. And, we are the exclusive Nevada grower of Kyle Kushman’s proprietary marijuana strains which have been highly rated top sellers in California. Furthermore our ownership interest in the Showgrow dispensary on Fort Apache Boulevard in Las Vegas guarantees retail distribution of our products from that facility. Our products will have enough exposure to ensure that consumers can appreciate its quality and superiority compared to other brands. We also believe that the wholesale price of marijuana is likely to increase over time, particularly if Nevada votes to allow recreational use of the product in November. Our commitment to quality controls guarantees that not only will we have the best medicine, will also have the best recreational products should the law allow.
The current emphasis on near-term cash flow allows us to plan for exploiting the potential of our science assets. We recently formed Growblox Life Sciences, LLC and have retained Fenwick & West, a Silicon Valley based law firm focusing on life sciences and high technology companies with a nationally top-ranked intellectual property practice, to development strategies for the protection of the Company’s intellectual property. We were able to convince one of the leading IP firms in the world to represent us because of the ground-breaking work of our science team, headed by Chief Science Officer Dr. Andrea Small-Howard. Our science is real and its potential is breath-taking. Our strategy will be to work with Fenwick & West to write patents on one or more of our proprietary compounds. After provisional patents are filed, we will seek venture funding for Growblox Life Sciences making it an independently funded drug discovery vehicle.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
