Briefly explain the cost plus construction model and give us some background on the size of the market in Nevada as it relates to construction?
The cost plus agreement is a more favored contract between an owner and contractor that has been used for years. Its simply taking the total cost of the improvements the owner requests and adding 10% for profit to the GC. Both the owner and GC favor a relationship like this because its hows 100% transparency for the job. Nevada, as a new and emerging state for not only legalized medical but recreational being voted on in November is a good area to concentrate on right now. The sheer numbers for growth in the state are to overwhelming to overlook which is why we settled on focusing here;With voters poised to decide a ballot measure on the issue in November, here’s a by-the-numbers look into some of the independent researchers’ findings and potential projection analysis:
• $1.7 billion: Total wages and business owner income that would be generated in the first seven years after legalization
.•$464 million: Total tax revenue that would be generated in the first seven years after legalization. That breaks down to $257.4 million in sales and use tax, $147.1 million in excise tax, $47.2 million in license fees, $3.5 million in application fees, $521,000 in Nevada Commerce Tax and $8.3 million in payroll tax.
• 40,975: Total number of full-time jobs that would be added to the economy in the first seven years after legalization.
• 6,200: By 2024, the number of jobs that would be supported per year by regulation of the drug.
• $1.1 billion: Also by 2024, the annual economic activity related to regulation.
• $224.2 million: Estimated amount that Clark County visitors would spend on marijuana in 2018. That’s based on a price of $11 per gram, $2 more per gram than the projected price that locals would pay. As with most goods and services, marijuana would be more expensive on (or near) the Strip. The equation also is based on statistics-based projections on the number of annual visitors who would use marijuana (6.1 million), the average duration of their stay (3.4 nights) and their average daily consumption (0.98 grams).
• 53.5 million: Projected number of Clark County visitors in 2033. In 2015, Las Vegas drew 42.3 million.
How big are some of these parcels of land that cultivators have and what you see as future growth for clients as the state goes from medical to recreational?
The average parcel we have encountered with clients is 10-12 acres. This gives the owner more than enough room to get established and grow as the market grows. We do have a few clients in the pipeline that we are working with that have 50+ acres which is not the norms, but with that much land, we are working with them closely to create Master Plans based on the likely rapid expansion of recreational marijuana as their models are based off of the trajectory of recreational legislation happening. t.
“As a brief explanation about the construction process, more than half the time needed from the start of planning to finish is for government building approvals which is further complicated in Nevada by monthly changes to code dictated by the State since this is a very new process for city planners to follow. The first phase of any new project is civil engineering which approves the exterior needs, know as “The Site Plan”, which can take Three to Four months; Then we enter application dates followed by a planning commission meeting, and then finishing with the city council meeting for new construction.
Next, like Sin City, we move into the interior and your met with continuing challenges with comments to codes that are not yet defined in an emerging market, and can often delay you an additional Two to Three Months in City Revisions and Questions till permitting. After local approvals, the project enters into bidding phase to guarantee the best prices we can give our clients and typically is a Thirty Day process, at which point you can now legally build what was planned, which for a 5,000 Sq Ft Building is Three to Four months depending on the build needs and the complexity of the interior (which is were we are at with Sin City).
You recently retired 5m series a preferred shares? What’s MCIG’S strategy with the retirement?
It has always been a long range strategy to return shares to the company as we grew. There were two paths to choose from, 1) toxic debt, or 2) stock based compensation. We were set against a toxic debt relationship where the potential to take the company away from the shareholders was a real possibility. Stock based compensation, while initially creating a dilution for the shareholders as we grew the business, was something we could manage and control. The retirement of stock, in conjunction with the mass reduction in stock based compensation expected in the third quarter of this year, management believes we have controlled the dilution effect created with the path chosen, and are now in position to build shareholder wealth and value.
How are CBD sales and will MCIG ever be a straight manufacturer rather than a builder of brands?
The company currently has a wholesale division (manufacturing division included) and a retail division. Our retail division is built on specific fundamentals which promotes the builder of brands by getting the product people want to them. Our wholesale division is our research and development arm that design, tests, builds (manufactures), and promotes our own product lines. The “push vs pull” methodology is used hand in hand to ensure the greatest possible outcome for sales and shareholder value. As both divisions are currently profitable, we will continue to cultivate both to ensure each reaches their potential maximum effect.
How will VTCQ’s assets you recently acquired strengthen the bottom line for MCIG and increase value for shareholders?
In May, 2016 MCIG developed and approved an operational game plan for the expansion of its retail sales. Part of this plan was to expand domain name and website presence. Our goal; to capture and use to the Company’s advantage the recent and consistent changes in the Google ranking process, seeking guidance and direction from the industry experts and market leaders.We would expand product sales to include not just our own proprietary products, but to be the industry leader in CBD sales.
Through research; involving analytics, data mining, buying trends, and search engine analysis, the Company is constantly striving and more able to pinpoint exactly what the general public is searching for, how often, where and why. This information is used to guide the company in strategic acquisitions of domain names and site development that will increase overall awarenessof MCIG and enhance customer satisfaction. There is a great divide between what most companies target, and what the general public is actually searching for. This is why it is critical to properly research and ultimately infrastructure the website around those trends. We do not tell the general public what to search for unlike many companies, we follow what they are already trending into as an industry.
Based upon this research, the Company acquired three specific domain names to use in conjunction with the four domain names it operates and most recently launched the CBD Warehouse Website. As part of these acquisition we have available some of the best site development, SEO, and analyst in the market available to us who have provided in depth and thorough analysis of all out sites. With the goal to propel the company towards domination of the specific industry keywords organically, and not by the conventional paid advertising methods that often prove highly ineffective, we strive to control the primary keywordpositions, and once we achieve them, to maintain them, at no additional costs unlink our various competitors.
Management believes there is no other form of online marketing that can deliver a return equal to SEO when properly executed. Search engine optimization when implemented properly delivers a constant flow of traffic, and it is our job to properly convert those inquiries into sales. This is done by giving the customer the product they want, not what we want to sell them. MCIG has entered into multiple marketing and sales agreements expanding the product offered to meet customer demands because of the vision and our new storefront