And now the fun begins. With all this development in place, we can start speculating about numbers. Obviously since this is such a nascent industry, the revenue figures are pure speculation.
Lets start with the big picture, the overall cannabis market. While everyone complains about "transparency" in the MJ OTC and pink stocks, American Green is an open book compared to the cannabis black market. It is difficult to truly measure the size of the cannabis industry because previously illegal activity of moving the products were not reported but here is what we do know;
In the last 80 years of cannabis prohibition the demand has been so great people are willing kill and die in search of profit. The demand for cannabis is so great that 80 years later the US Government is bowing to the will of the citizen's cries for legalization. Think about that for a moment, think about the significance of the last 2 sentences.
It is estimated in the United States alone the cannabis markets generate between $20-100 billion annually. Again, those figures are hard to fully realize due to the nature of the blackened market but here is a telling fact; for the past 20 years California's number one cash crop is cannabis. Even before CA legalized #$%$, the state's largest crop was an ILLEGAL product.
So where does ERBB, American Green and Zazzz fit into that market?
Right now there will be 4 machines placed at dispensaries in 3 different states. For those who do not know, California already has basic vending machines in place. Check Leafly or Weedmaps for Zen Healing in West Hollywood to see pictures of the 2 simple, coil release, alphanumeric keypad machines at the shop and scroll down to read comments about how much customers like the machines, which were so popular the shop got a second machine.
Shearin has stated the goal is to have 1000 machines operating so I'm going to use that number for breaking down a revenue structure. He has also stated the lease will be priced at $100/month or so which will also be factored in.
So with 1000 machines at $100/month that brings in $1.2m per annum.
But the numbers get real fun when you estimate revenue sharing with dispensaries. At the Zen Healing dispensary mentioned above, the machines are filled with $30-100 items and the shop's one machine was so popular, they added a second machine. I would estimated each machine pulls in about $1000/per day.
Based on $1000/per day per machine, if ERBB could command only 10% of the sales, the revenues from Zazzz could be ENORMOUS. A single Zazzz machine could bring in as much as $3000/month for a total of $36000 annually per machine. At 1000 machines x $36000 that could bring in $36m per year. Keep in mind that is ONLY 10%. Most service markups are around 20% so it is possible Zazzz could be a $100m revenue generator.
And lets not forget the potential to push OneBode products through Zazzz machines, exposing the OneBode goods to a whole new market. There is also potential to sell the Zazzz vapor pens mentioned above, as well as other Zazzz branded products via the Zazzz machine, possibly increasing revenues.
Jurassic Water System - This could be enormous. With a $1.17m order already, JWS could very easily become a massive revenue generator because the application is not limited to the cannabis industry. Any crop using irrigation, WHICH IS EVERY PLANT ON OUR PLANET, could benefit from oxygenated water. If you have ever grown hydroponics, oxygen regulation in the water is essential to strong root growth.
American Green Websites - Ad revenues, product sales, and other revenues could be a big part of ERBB's earnings.
OneBode - The health supplements market is massive. MASSIVE. I spend about $100 per month on supplements and vitamins.
Seriously folks, I could go on for days but I have things to do. If you've read this far, I've saved the best for last.
ERBB COULD EASILY COMMAND A ONE BILLION DOLLAR PLUS MARKET CAP. If competitors like MD8X were at one point valued at $900m with their whack setups, ERBB could be twice that considering American Green's operations vastly exceed just the Zazzz vending machines
Sentiment: Strong Buy
Higher lows and Lower highs? That is the fun we see. The friendly green line in the chart simply travels in a gravitational mode like adding weights to a balloon helping it to descend....Give and take we are s.l.o..w.l.y. going back.Your enthusiasm is greatly appreciated though...
I don't believe OneBode products will be sold via the ZaZZZ for a couple of reasons;
- the typical MJ dispensary customer is not there to buy nutritional supplement type products and so they are the wrong target base
- "shelf space" inside the ZaZZZ is limited and MJ related products and accessories are typically higher priced and will generate more revenues and higher margins/machine
IMO, OneBode would do much better sold through more traditional retail and health related stores such as WalMart, Target, Osco, Rite-Aid, WalGreens, CVS, General Nutrition, etc. where the focus would be more directly on them.
As far as potential revenues, it's appropriate to talk about ZaZZZ lease fees and a percentage of sales but let us not forget about two other major sources of revenues...Advertising, remember they can stream other company's ads on the ZaZZZ monitor. How much would a company be willing to pay for say, a TARGETED 15sec. video ad repeated on a regular cycle. Hypothetically speaking, let's say ERBB charges $5/15sec. ad. In 24hrs., there can be 96 ads x $5=$480/day...X 365 days= $175,200/yr./ZaZZZ in ad revs. x 1000 ZaZZZ=$175.2M/yr. ...all conjecture but you get my drift. The potential just from Ad revs. is enormous.
Also, let us not forget "placement fees". By that I mean the cost to a company just to have space in the ZaZZZ. For example, in the retail environment, it is normal practice to charge vendors a set "placement" fee for shelf space. The vendor pays XXX dollars on either a monthly, quarterly or annual basis to secure XXX sq. ft. of shelf space. The cost of this shelf space is determined by size taken and placement location. End Cap space is more costly than bottom-shelf space, etc. "Location" may not be as relevant in the ZaZZZ but, considering how limited the available # of vending slots is (28 I believe), you can bet that companies will be more than willing to pay a premium "placement fee" as well just to have their products IN the ZaZZZ!
Sentiment: Strong Buy