LAS VEGAS, July 25, 2016 /PRNewswire/ -- Growblox Sciences, Inc. (OTCQB: GBLX)
Since being appointed CEO just three months ago, I have confirmed that this Company is everything that I thought it might be, and more. In Growblox, I found a company with unlimited potential. All that was necessary was to sharpen the focus of our efforts. Our decision was to prioritize the creation of near-term cash flow by building out and opening our 28,000 square-foot cultivation facility located on West Teco Boulevard, Las Vegas. In that connection, we have received every approval from licensing and occupancy permit that we have sought to date, and we expect to have our first crop growing in our state-of-the-art pharmaceutical grade cultivation rooms by October 1 of this year. Our first harvest will be approximately 10 weeks later.
The Teco facility with 200 lights will produce approximately 110 pounds of cannabis per month, and at that rate will generate approximately $250,000 in revenue per month, or $3.0 million per year. Over the next 18 months, we will expand to approximately 1,000 lights meaning that we can produce approximately 550 pounds of cannabis per month creating a company with run-rate revenues in excess of $15+ million per year, perhaps as much as $20-$25 million per year depending on plant yields and wholesale cannabis prices. This is from Teco alone. We have additional licenses to develop and, when recreational use is approved in Nevada in November of this year, we will be positioned to significantly increase our production, sales and revenues. Why? Because Las Vegas has over 44 million visitors a year, a number that is likely to increase with the availability of recreational cannabis. This will exponentially expand the size of the total Nevada cannabis market.
We recently entered into a non-binding letter of intent to acquire a majority interest in a production license and two additional cultivation licenses. We expect to finalize these agreements within the next two to three weeks. The production license will immediately give us the ability to convert our plants into products and increase our revenue because processed products such as vape pens and oils provide higher margins than raw cannabis flower. Also, the additional cultivation licenses will provide opportunities to streamline production by providing locations for tissue propagation and "vegging" young plants. We can devote all 200 lights at the Teco facility to "blooming" finished plants (blooming is the final stage of plant growth before harvest).
We expect our products to compete well in the marketplace because of the considerable efforts we have made in the plant genetics and tissue culturing of our proprietary strains of cannabis. And, we are the exclusive Nevada grower of Kyle Kushman's proprietary marijuana strains which have been highly rated top sellers in California. Furthermore our ownership interest in the Showgrow dispensary on Fort Apache Boulevard in Las Vegas guarantees retail distribution of our products from that facility. Our products will have enough exposure to ensure that consumers can appreciate its quality and superiority compared to other brands. We also believe that the wholesale price of marijuana is likely to increase over time, particularly if Nevada votes to allow recreational use of the product in November. Our commitment to quality controls guarantees that not only will we have the best medicine, will also have the best recreational products should the law allow.
The current emphasis on near-term cash flow allows us to plan for exploiting the potential of our science assets. We recently formed Growblox Life Sciences, LLC and have retained Fenwick & West, a Silicon Valley based law firm focusing on life sciences and high technology companies with a nationally top-ranked intellectual property practice, to development strategies for the protection of the Company's intellectual property. We were able to convince one of the leading IP firms in the world to represent us because of the ground-breaking work of our science team, headed by Chief Science Officer Dr. Andrea Small-Howard. Our science is real and its potential is breath-taking. Our strategy will be to work with Fenwick & West to write patents on one or more of our proprietary compounds. After provisional patents are filed, we will seek venture funding for Growblox Life Sciences making it an independently funded drug discovery vehicle.
Our proprietary Growblox chambers, anticipated to be commercially ready within the next quarter, are the only way to grow a 100% consistent and cost-effective pharmaceutical grade cannabis which is important irrespective of its ultimate consumers; a consistent recreational brand will be as important to consumers as a consistent medicine will be to its patients. Ultimately, our science will enable us to identify and develop proprietary strains, which will provide us with raw materials for our soon to be patented medical compounds. These drugs will unleash the powerful therapeutic effects of cannabis to patients with Alzheimer's, or epilepsy, or Parkinson's who so sorely need it.
In the remainder of this year and 2017, we will continue to expand our revenue base in Nevada, but we also will take a closer look at pursuing licenses in other states. We already have done much work in this regard, and expect to file license applications in several additional states in the coming months.
We are a lean operation, without having sacrificed any growth, in part thanks to the abiding commitment that the employees of this Company have in its future. I think that the stock of our Company will appreciate substantially over time, perhaps sooner than you might think, given the fact that we are about to become a significant revenue generator.
One of the most significant events this year was the addition of two outside directors, Leslie Bocskor and Shane Terry. Both Mr. Bocskor and Mr. Terry are accomplished and well-known players in the cannabis industry. I view their agreement to join our board as a huge confirmation that we are on the right path and that great things are in store for our cannabis cultivation business and development of our cannabis sciences.
In sum, we have a valuable suite of licenses in Nevada, and we are well-positioned to acquire other such licenses as they become available. We have science assets that are unparalleled by comparison to anyone else in this medical cannabis business. And we have a dedicated and experienced staff that will enable us to capitalize on those assets efficiently. The legalization of cannabis is a once in a lifetime kind of opportunity, one which promises economic benefits as well as the social benefits inherent in the development of efficacious medicine which is so desperately needed.
Once operating revenues begin I am confident that this Company's stock will reflect the industries multiples and the company will be among the most prominent successes in this new business of cannabis. I believe that the investor community will soon agree with me.
We will hold our 2016 Annual Shareholders' Meeting at our Teco Facility in Las Vegas in late September. I hope that many of you will be able to attend. You can meet management, tour our facility, listen to our plans – and hopefully understand why I am so bullish on our Company.
Chief Executive Officer
About Growblox Sciences, Inc.
Growblox Sciences, Inc. (GBLX) is a diverse cannabis company, focused on cultivation as well as biopharmaceutical research and development. The Company's goal is creating safe, standardized, pharmaceutical-grade, cannabinoid therapies that target a variety of medical conditions. To learn more about Growblox Sciences, Inc., go to: http://growblox.com
This press release may contain statements relating to future results or events, which are forward-looking statements. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import may identify forward-looking statements. These statements are not historical facts, but instead represent only the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Further, information concerning the Company and its business, including factors that potentially could materially affect the Company's business and financial and other results, are contained in the Company's filings with the Securities and Exchange Commission, available at www.sec.gov. All forward-looking statements included in this press release are made only as of the date of this press release, and we do not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which we hereafter become aware.
Note: Although the Company's research and development activities are not illegal, the production and sale of cannabis products violate federal laws as they presently exist.
Growblox Sciences, Inc.,
3550 West Teco Ave., Las Vegas, NV 89118
Liz Bianco Publicity Director, [email protected], http://growblox.com
Investors: John Poss, [email protected]
SOURCE Growblox Sciences, Inc.