I’m just seeing this, HR. You still have this as a strong buy in your mind?
Also, may want to check out Rockwell Medical (RMTI). They’ve historically been in dialysis concentrates business but have developed an innovative iron replacement product/therapy. It could be a game changer. There’s plenty available to research on-line, but I really like what I’ve seen so far.
I am buying AgraFlora on any decent pullback, which I have been doing since .225. They have plenty of catalysts over the next 18 months that will put it over $3.00 conservatively IMO. I think this breaks $1.00 by end of June as that is when Phase 1 of their retrofit will be completed. The next catalyst will be approval of their license by Health Canada shortly thereafter. That in particular will light the fuse on it. Then it will be first plantings. Then it will be completion of Phase 2, then first shipments/revenues. Then it will be completion of Phase 3 which will be by Q4 2020. At that time their Delta facility will have the capacity to be one of the top 5 producers of cannabis in the world. There will certainly be plenty of news along the way.
AgraFlora Organics International Inc (OTCMKTS: PUFXF) Destined For New Highs
Posted on April 1, 2019
AgraFlora Organics International Inc (OTCMKTS: PUFXF) bulls are certainly in control and the bears are fighting a losing battle with AgraFlora Organics. The stock has continued to edge higher after an excellent start to the year, supported by improving fundamentals.
PUFXF SHARE PIECE ANALYSIS
The bounce back is well supported by improving fundamentals key among them being the progress the company has made in affirming its long-term prospects in the cannabis industry. The company’s 2.2 million square foot Delta Facility is on course for completion, on the company securing the much-needed funding.
In addition, the company has inked a strategic partnership with Dixie Brands as it seeks to expand its operations into Europe in pursuit of opportunities for growth. AgraFlora is also eyeing international listing as part of an effort of creating a leading international medical cannabis company.
Investors have continued to push the stock up the charts in response to the string of positive developments that affirm push for growth in the multibillion-cannabis sector. The stock is currently trading in an uptrend with bulls in control.
After pulling back from the $0.60 handle, the stock has once again started surging in what appears to be a continuation of the emerging uptrend. A breach of the $0.60 resistance level should affirm the emerging uptrend, setting the stage for AgraFlora to make a run for $1.10 mark, which is the next substantial resistance level.
PUFXF Daily Chart
Conversely, sell-offs will in the meantime be restricted to the $0.40 mark, which appears to be the immediate support level, supporting the upside action. A breach of the support level would leave the stock susceptible to further drops, in continuation of the long-term downtrend.
WHAT DOES AGRAFLORA ORGANICS DO?
AgraFlora casts itself as a growth-oriented and diversified company focused on the cannabis industry. The company owns an indoor cannabis cultivation facility in London and Ontario.
WHY IS AGRAFLORA ORGANICS SURGING
Shares of AgraFlora are surging in response to the milestone achieved in the development of the company’s marquee 2.2 million square foot cannabis facility in Delta British Columbia. The Company has closed two tranches of a $40 million equity participation with Delta Organic Cannabis Corp.
The company’s state-of-the-art cultivation facility under construction is now fully funded and will become the second largest in Canada upon completion. With the new facility, the company is on course to become one of the mainstay players in the burgeoning Canadian cannabis marketplace.
“With the completion of all three retrofitting phases at the Delta facility, AgraFlora estimates that, as of 2020, it will be capable of growing 250,000,000 grams of high-quality cannabis every single year. Based on the landscape of the current Canadian marketplace, this would make the Delta operation the fourth largest grower in the country on a per gram basis,” AgraFlora in a statement.
In addition, the company has acquired an additional 10% stake in Propagation Services Canada for $14 million. The acquisition takes the company’s stakes in the cannabis flower company to 60%.
EUROPEAN UNION EXPANSION
Even as AgraFlora continues working on strengthening its cannabis production capacity, it has also set sights on the European Union, as its next frontier for growth. The company has since inked a strategic partnership with Dixie Brands.
The two are to work together on the manufacturing, sale, and distribution of cannabis-infused products, in legalized markets across the European Union.
“The European Union is a significant opportunity with more and more countries embracing medical cannabis and cannabis-based products. By exploring these opportunities with AgraFlora, we can leverage our experience in the United States to bring high-quality products to the European market,” saidChuck Smith, President of Dixie Brands.
A surge in share price and market activity attests to growing investor confidence about AgraFlora growth prospects. Completion of the Delta Cannabis facility would be a major milestone that would propel the company to the top of the charts when it comes to cannabis cultivation and production in Canada.
Expansion into Europe also underscores the company’s push for new opportunities, sure to accelerate its growth prospects. Recent developments provide clear evidence of a company destined for success as the Canadian cannabis market continues to expand.
AgraFlora Provides Guidance Regarding Timing of Cultivation License Award
Vancouver, British Columbia / June 4th, 2019 – AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to announce that its Joint Venture entity, Propagation Services Canada (“PSC”), continues to achieve material progress with regards to the retrofit and licensing of its flagship 2,200,000 square foot Delta Greenhouse Complex.
After a careful review of its anticipated final preparations and submissions, including its Affirmation of
Readiness and Video Evidence Package (the “Evidence Package"), the Company anticipates, based on recent standard timelines for review and award and assuming no major required amendments or
augmentations, the award of a cultivation licence from Health Canada by the fourth quarter of 2019.
Chris Brocklesby of PSC commented, “We are largely complete on grow room build-out and we are now turning our attention to wrapping up security details while we await structure and supplies to complete the post harvest area. We are pleased with the rapid progress that we are making and feel confident that we will achieve the timelines and milestones noted below.”
Additionally, AgraFlora reaffirms that the aforementioned Evidence Package will be finalized during the
third quarter of 2019 and anticipates submission to Health Canada shortly thereafter. Upon extensive
deliberations with PSC and its industry consultants, the Company’s internal forecasts indicate that the
inaugural harvest at the flagship Delta Greenhouse Complex is scheduled for the first quarter of 2020.
AgraFlora also announces that all prerequisite cultivation infrastructure has landed on-site in Delta, BC
and has been secured prior to installation. Post-harvest equipment and supplies are en-route from Europe by way of airfreight and sea vessel and are anticipated to arrive within the required timeline for a Q4 harvest.
The retrofit for all applicable grow rooms located at the Delta Greenhouse Complex are complete and the Company reports that the installation of CCTV systems, as well as advanced perimeter and post harvest access controls will be completed by the second week of July.
Brandon Boddy, Chairman and CEO of AgraFlora stated, “With two significant off-take agreements
already in place, one with Namaste representing 25,000,000 grams per annum and another with ICC
International Cannabis Corp representing up to 100,000,000 grams over a 5 year period, we are eager to finalize the retrofit of the Delta Greenhouse Complex – an outstanding facility with an estimated
~$190,000,000 replacement value, with 2.2 million square feet under glass.”
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the
international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint
venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
After this update on AgraFlora, I’m gonna have to pump the brakes a bit on expectations. I still maintain that it has 10-bagger or more potential, but the timeline has moved further out than originally projected by the company. Here are the catalysts and timeline shareholders should be looking at:
End of June, 2019 - Shareholder tour of Delta facility. Should provide some nice boots-on-the-ground feedback of the facility.
Q3 2019 - Finalization and submission of Evidence Package required for license from Health Canada.
Q4 2019 or Q1 2020 - First harvest at Delta Facility (contradiction of timeline in PR).
Upon receiving license approval from Health Canada, that will add credibility to the greater market about AgraFlora’s potential and the stock should be trading at much higher levels once approved.
Rick. Did you see the banter on David’s twitter from the Joe Natural guy today? What was that all about? What are the “very very shady transactions”? Is he referring to the organic flower deal?
You’d have to ask Joe Natural what he means by “very very shady transactions”. AgraFlora has no revenues at present so they have to issue shares as compensation for business transactions, salaries and so forth. That always pisses shareholders off, but at least in my case, when I know a company doesn’t have revenues, there are never any shareholder-friendly ways to raise funds to build out their business and I consider that a cost of my investment that I must pay for being an early entrant.
One transaction which gave/gives me pause was 7,000,000 shares to outgoing CEO Derek Ivany. Granted, he moved the company into the position it is today, but the compensation seems a bit rich for a company that has not sold any cannabis as of yet. If anything, the reward should’ve been due upon certain milestones such as achieving the Health Services cannabis license or attaining the first $100 million in revenues or something of that nature. It’s an expensive amount of dilution for a company that isn’t producing yet. So I get shareholders being dismayed at that.
As far as Joe Natural is concerned, I’ve known (of) him for some 10 or more years. I’ve debated him in the past on some stocks, though I’d be hard-pressed to remember which ones. I’ve caught him blatantly lying in some cases so as much as I do respect some of his opinions and ability to find undiscovered gems, I am also very cautious as to some of the things he says. He’s a character - very savvy investor/trader with some big scores over time and he’s developed a following. He got into AgraFlora around .10 or so I think, so he’s playing/trading with house money. But he’s also very emotional to the point where he can become unhinged. I believe that is what was on display with his back-and-forth with David Parry, though I don’t know the specifics of their personal relationship. I can only comment on what I’ve read. In short, I take his excessive bullishness and excessive bearishness with a grain of salt and I try to sort out the facts underlying where his emotional extremes come from.
Hi Rick. In the latest news release it states:
Furthering its vertically integrated mandate, AgraFlora is also contemplating establishing an on-sitedispensary at the AAA Heidelberg facility, as per Alcohol and Gaming Commission of Ontario(“AGCO”) regulations, capitalizing on a 1,500,000-purchaser catchment area within a 90-minute radius.
Will this mean further dilution and if so, is it worth it?
A few things you have to keep in mind here:
They said they are “contemplating” establishing an onsite dispensary. I don’t really concern myself when a company says they are contemplating anything - aside from something that has a profound effect on the stock or business as a whole. For example, they also have said they are contemplating a move to a higher exchange. Sure, it’s nice to know what the company’s vision is going forward, but until it becomes a reality, I don’t really get too concerned about it.
They are considering an “on-site” dispensary. a few things here:
- It is on their existing site so it is not like they are going out and buying a new property and building and so forth, so I would assume that capital expenditures are not too burdensome.
- A dispensary is akin to a liquor store for pot. It’s not some huge expensive facility so the footprint is assumed to be small. It is merely an outlet to sell on site as opposed to growing and shipping wholesale crops.
- If you are concerned about this being dilutive, then I would email IR and ask if you could have a ballpark figure on what it will cost to get the dispensary up and running, how much it will cost to operate annually and what sort of revenues does management anticipate on an annual basis. I personally am not too concerned about this as I am invested in AgraFlora for the Delta Facility conversion.
As far as dilution is concerned - Everything a company incurs expenses for (staffing, facilities, product, professional services, etc.) will be dilutive in some form if the company does not have revenues to pay for such expenses.
When you say “Is it worth it?” - how can you or I possibly answer that? This is where shareholders put faith in management that they’ve run the numbers and have determined it is worth contemplating. And if a shareholder has questions or concerns, then direct that to IR/management.
From their PR, it sounds like they see an opportunity to capitalize on:
“Furthering its vertically integrated mandate, AgraFlora is also contemplating establishing an on-site dispensary at the AAA Heidelberg facility, as per Alcohol and Gaming Commission of Ontario (“AGCO”) regulations, capitalizing on a 1,500,000-purchaser catchment area within a 90-minute radius. _
_ London, Ontario is Canada’s 11th largest metropolitan area and is tactical located at the nexus of Toronto, Ontario , Detroit, Michigan and Buffalo, New York ; affording the Company a lucrative opportunity to capture a significant portion of the cannabis tourism marketplace.”