Saturday, June 25, 2022

SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) Launching Ambitious Growth Plan

SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) is seeing renewed volume and a slight bump in early trading. SIGO released details on its expansion plans
SIGO’s CEO clearly detailed the company’s facility expansion plans and how they will finance the capital for those plans. I have put some quotes from that company letter below. Earlier this month, SIGO leased green house space in Northern California that has been approved for cannabis cultivation. The greenhouse is 12,000 square feet; however, SIGO has begun filing its permits to expand to 22,000 square feet.
SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) bills itself as a company whose principal line of business is the cultivation of medical cannabis.
SIGO has leased green house space in Northern California that has been approved for cannabis cultivation. The greenhouse is 12,000 square feet; however, SIGO has begun filing its permits to expand to 22,000 square feet. The point of his words is that the company is planning to grow, while adding shares to help expand annual operation.
Once the State of California has finalized the licensing process and requirements for licensed manufacturing facilities, the Company will begin consulting and advising clients that operate in the medical marijuana business by providing clients a licensed manufacturing facility to produce products such as oils and edibles.
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CEO T.J. Magallanes stated, “We received a lot of feedback yesterday on the 8K that we filed and most of the comments were due to a misunderstanding or misinterpretation of the information provided.  I felt it necessary to share with you today specific, detailed information that’s from the heart.  Our company is poised for explosive growth.  We are passionate about what we do and we are proud of our accomplishments to date.  Our team has worked hard to get us to this point.  We now have three options. 1. Continue to operate within the confines of our current 22K square feet.  2.  Expand to an already pre-determined minimum of 152K square feet, or 3. Swing for the fences and expand quickly in phases to a total of 750,000K square feet.  For us, option number one is off the table.  It would be unfair to our operations team and unfair to our shareholders.  Option number two is already in the works.  Option number three is still on the table, so we need you to understand something clearly.  We have a great plan of execution.  It is laid out and ready to implement step by step and we would ask that shareholders trust us to execute our plan.  The misconceptions today seemed to come mostly from how we presented the plan for the S-1 so let me lay that out for you step by step.”
Mr. Magallanes went on to say, “Today at opening of business, our company has approximately 4,031,771 share outstanding.  At close of business today, our company will have approximately 4,431,771 shares outstanding or an increase of 400,000 shares.  In exchange, at close of business today, the company will have placed into our hands $340,000 in expansion capital.  The particulars of the S-1 and how it will work, how we execute the strategy, the long term preferred share conversion, etc. are all irrelevant at this point.  Again, we ask that you trust that we are doing what is in the best interest of the company and shareholders.  What we are telling you is that with the first tranche, 400,000 shares will be added to the outstanding and $340,000 will be placed into our account.  On a side note, we do not like debt of any kind and throughout the expansion, for the life of our business, we want to keep debt completely off the books or at least to a minimum.  We currently have $300,000 in debt and that will be paid off in full immediately.  That will leave us with $40,000.00 in expansion capital from the first tranche.  Each subsequent tranche will also be negotiated in 400,000 share increments and we expect similar or better results with each.”
He continued with, “We currently have 22K square feet of space and to expand to the pre-determined minimum of 152K square feet, we will need to raise approximately $1,560,000.00 in expansion dollars.  Using the same or similar results to the first tranche, that would require us to add a little under 2,000,000 additional shares to the outstanding share count. So to expand to 152K square feet that will generate approximately $200.00 annually per square foot of grow space, we project the need to have approximately 6,267,000 shares outstanding and no more than 7,000,000.  To keep this release from getting too lengthy, suffice it to say that to determine a projected share count, revenue projection and equivalent expansion capital raised to max out 750,000 square feet, the same calculations are applicable.”
Mr. Magallanes finished up with, “What we are telling you as clearly as possible is we have a unique and effective way to raise funds in place, a plan to keep the outstanding share count to a minimum, a way to create explosive revenue growth without the creation of any substantial debt, much less toxic debt and at the same time doing so without the payment of any salaries to officers of the company, only monthly dividends; the exact same dividends received by our shareholders.  Now I’m not familiar enough with all of the various places where people congregate online to discuss our stock, but apparently like all other topics these days, there’s ample opportunity and multiple locations where people take the opportunity to share false or misleading information about our company.  What I’ve covered with you here are the facts and they are indisputable.  As I’ve stated before, I spend the majority of my time focused on the operations and I’d like each of you to see it in person if possible, so let me personally invite any and all that still have questions about our business, our expansion plans or just questions about the cannabis business in general to consider joining us on September 16th.  We would love to meet you in person, we’d be glad to show you our current grow facility and the expansion square footage as well.  On a final note, I hope that this clears up any confusion and makes it crystal clear where our company is headed and we ask for your continued support.”
SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) has a market cap of $88.56M and 50.03M shares out. This last number will soon be rising. The company has received high levels of certification, but is still pre-revenue. That said, in the frenzy California cannabis market they could be a strong company to watch. We will be keeping you update here. Sign up for continuing coverage on shares of $SIGO stock, as well as our other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $SIGO, either long or short, and we have not been compensated for this article.

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