Disclaimer: The below assessment is provided for informational purposes only and is not meant as a solicitation to buy or sell any securities related to the subject of this paper. All views and interpretations prescribed in this assessment are those of the author without communication or review of the company in question. This is a personal interpretation of the information provided by Custom Protection Services. This is not a recommendation to buy or sell securities related to ticker TOMI.
PR Overview
Golden Triangle Ventures, Inc. Announces the Completion of Its Second Acquisition, Global Health Services, LLC
SAN ANTONIO, TX, Dec. 10, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — Golden Triangle Ventures, Inc. (OTC Pink: TOMI) announces the acquisition of Global Health Services, LLC., a wide-ranging Hemp processing, and distribution service provider, formed to transact all CBD and health-related business as a wholly-owned subsidiary of Golden Triangle Ventures, Inc. under its health division. This is the Company’s second acquisition and continues our strategic plan of multi-faceted growth in the Entertainment, Health, and Technology sectors.
To view full PR, follow the link below.
https://www.otcmarkets.com/stock/TOMI/news/story?e&id=1494397
Analysis
This PR provided an overview of GTV newest acquisition, “Global Health Services, LLC.”. Although this PR highlights their commitment to growing GTV, there is very little information at face value of what this acquisition adds to the company’s bottom dollar. We can, however, infer some of the potential and liability through analysis of what is stated.
The focus of this inference comes from the process used to extract CBD from hemp. Global Health Services network of extractors uses a process called Supercritical CO2 Extraction to pull the desired chemical compounds from the Hemp. For an overview of this process, you view the article and video from Marihuana Break posted below.
https://www.marijuanabreak.com/cbd-cannabis-extraction
Watch “The Complete Guide to CBD Extractions [CO2 and more]” on # https://vimeo.com/311198618
After research, claimed extraction amounts for this process are anywhere from 4 to 13% of trimming weight. An estimated yield price for CBD is $.10 per milligram. The time frame for batch processing can take up to 24 hr. At best, these numbers are a general estimation based on various sources.
Factors that impact production:
Time: the amount of time it takes to extract CBD from hemp, as stated above, will restrict daily production.
Trimmings: the average hemp weight per acre is roughly 700 lbs.
Extraction Facilities: The size and type of equipment used in the extraction facility will limit the amount of trimmings that can be processed and dictate the amount of time it will take to do said processing.
These three factors must be balanced to ensure steady production and steady revenue. Organic materials break down over time; if the trimmings are not processed in a timely fashion, there could be unprofitable waste. If there is not a steady supply of trimmings into the facility, the equipment could go unused, causing a drain on revenue for upkeep.
Final Assessment: although limited in information, this PR does show a willingness to keep shareholders informed on company operations. Even though there is little information defining the extent of the network or the impacts it has on GTV, there is enough based on the previous PR to develop this analysis. By positioning themselves between field and extractor, Global Health Services seeks to capitalize on production time by ensuring clients on both sides of the process has little to no wait time between harvest and production. By seeking to understand field production rates and extractor capabilities in regards to time and quantity, Global Health Services can ensure a steady supply from farm to extraction facilities which will ensure steady revenue streams. Management of the supply chain will be the metric of success for GTV.
Further analysis is pending upon future company public releases.
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