Sunset Island Group Inc (OTCMKTS:SIGO)
Sunset Island Group Inc (OTCMKTS:SIGO) yesterday revealed that its cannabis grow space would be expanded. Initially the grow space will be increased to at least 152,000 square feet while still leaving room for more expansion later. The cannabis grower also disclosed that 6,000 square feet of grow space was already under construction. Consequently the stock price jumped by 33.33% to reach $1.12 in Wednesday’s trading.
At the same time the cannabis grower has revealed that MAPAL Agro supplies and equipment were being ordered to ensure that clones are planted in readiness for harvesting three months from now.
“The MAPAL Agro equipment and supplies are being ordered and set up and clones will be fully planted and ready for harvest approximately 90 days from now,” said the chief executive officer of Sunset Island Group, T.J. Magallanes in a statement.
Magallanes also provided detail on Sunset Island Group Inc (OTCMKTS:SIGO)’s business structure saying that they had set a realistic revenue target of approximately $200 for every square foot of cannabis planted. Sunset’s CEO said officers of the company, including himself, did not take salaries and they are solely compensated through a dividend that is paid monthly – just like what the shareholders receive. Currently Sunset Island Group has 4.7 million shares outstanding.
Preferred status shares
Magallanes added that shares belonging to officers are in preferred status and have a 36 month lock-in period starting from the day of any conversion. In order to expand, Sunset Island Group is looking to raise capital via an S-1 filing as well as converting into preferred shares a couple of substantial investments. The Chief Executive Officer of Sunset Island Group also revealed that the company held no real debt or even toxic debt and that would not change.
Due to the fact that the firm was harvesting rotationally, it is able to produce throughout the year. Sunset Island Group is also one of the cannabis grow facilities which have been awarded the Enviroganic Certification. Magallanes further revealed that shareholders can pay a visit to the firm for a tour on September 16, 2017.
The expansion of Sunset Island Group Inc (OTCMKTS:SIGO)’s grow space comes a little more than a week after the cannabis grower revealed that it was expecting a substantial rise in revenue from selling cannabis clones which are currently enjoying high demand in the state of California. Sunset projects it can sell 10,000 clones a month at the start and later increase to 50,000. Each clone costs between $5 and $10.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.