CEO In SeekingAlpha, Why Surprised? Access To New Zealand medicinal cannabis market via 300 stores
In addition to FITX's market potential, the company has positioned itself to execute and fire on all cylinders once it receive the green light (inspection of its facilities) from Health Canada to start production. Main takeaways are:
•Competitive pricing on growing equipment
•FITX receives 235,294,118 PHOT shares at $0.17 p/s ($40mm)
•OGI receives 25% ownership in CEN Biotech via PHOT
•OGI receives 7.7% of CEN revenues quarterly via PHOT
•OGI receives $100mm once FITX reaches 1 million lbs in total production and sales volume combined via PHOT
- RXNB Inc. - Licensing & Operating Agreement
•Access to patent pending THC research and development
•Access to patent pending cutting edge grow technologies in the field of #$%$ (35 day grow cycle)
•Future access to 2,700 clinicians across the US
- Endexx Corporation (OTCPK:OTCPK:EDXC) - Contractual Agreement
•M3 technology - seed to sale tracking platform
- Phoenix Distribution - Sales & Distribution Agreement
•Access to Australian medicinal cannabis market via 500 stores
•Access to New Zealand medicinal cannabis market via 300 stores
There are two major milestones for FITX that I am anticipating. First, once the construction of its 27,000 square foot facility is complete it must receive final approval from Health Canada via inspection to become a Licensed Producer in Canada. We can expect this to happen in early April and if FITX receives approval, the PHOT IPA will kick in, sending a payment of $80mm in stock (PHOT share price @ $0.34) to FITX.
Second, if all goes well and approved to be a Licensed Producer, we can expect FITX to start selling in June/July. With the confirmation of sales and additional data (margins, total revenue, and market penetration) we will be able to quantify a more accurate picture of the Canadian cannabis market.
Additionally, the company plans to develop and release 50 strains of dried cannabis via proprietary technology and ip through a private partnership with RXNB. Furthermore, FITX has filed to produce and export 1.3 million pounds of dried cannabis, crowning itself as the largest producer in Canada's soon-to-be free market.