Global Consortium, Inc. Year End Update
COCONUT CREEK, Florida, Dec. 23, 2019 /PRNewswire/ -- InvestorsHub NewsWire -- Global Consortium, Inc., (OTCPINK: GCGX) would like to take this time to issue a 2019 year-end progress report, and provide an outlook for the start of 2020.
Currently owned assets:
We often receive inquiries from shareholders as to what is owned and not owned by GCGX. All of the assets within the building are owned by GCGX. The brand Indulge Oils is owned by GCGX. The Master Lease is controlled by GCGX. And once purchased, the building itself will be owned by GCGX. The Company can lease these assets and provide other management services to additional operating companies to generate monthly revenue.
Building status and permits:
In June 2019 GCGX received the permit it was waiting for to complete work on the space the Company leases in Sacramento, CA. The Certificate of Occupancy (CO) was finally issued in October of 2019, well over a year after the initial application for the manufacturing licenses were made. GCGX continues to experience delays primarily due to the time it takes regulators to issue building and other permits, however the number of new permits required is greatly reduced and GCGX expects to pass through this issue in 2020.
Even though the CO was issued, the City of Sacramento still needs to issue one additional permit for the installation of a vent pipe through the roof for the roto vape. The permit is supposed to be issued this week and if so, the vent will be installed immediately thereafter.
The last two stages of the oil manufacturing process cannot be completed until the permit for the vent pipe is issued and the vent installed. In the interim, Indulge Oils has been producing partial distillate strictly in-line with the permits already issued at the State and local level. The plan is to enter final production once the vent permit has been issued. Two weeks following the issuance, commercial oil sales can begin.
Once final production of Indulge Oils begins, GCGX will start generating revenue from the lease of its assets as well as the management services GCGX offers to client companies. The timeline for this phase is estimated for the first weeks of January 2020.
Share Purchase plan:
A portion of the revenue earned by the licensed cannabis company will be used to acquire GCGX Common shares in the open market. This action should help increase the value of the remaining GCGX Common stock and allow more of the money generated by the licensed cannabis company to directly benefit the shareholders of GCGX.
The test hemp farm in Colorado proved that GCGX was able to organize sufficiently to move rapidly into a farming phase. The company was able to contract a hemp seed manufacturer, contract a farmer, and the equipment purchased worked perfectly. On a commercial level however, the hemp crop failed to meet expectations. GCGX does not plan to work with the same farmer in Colorado.
We have conducted an extensive "lessons learned" from the test hemp farm in Colorado in order to make structural changes to improve outcomes in future farming operations. The biggest issue with the crop in Colorado was the hemp seeds were planted too late in the season. This meant the plants didn't have enough time to grow to maturity. As a result, the harvested crop did not have the potency, nor did it meet the expected weight yields.
While the initial farming operations were not a commercial success in 2018, they are an important long-term strategy. Successful harvests will allow the Company to operate at a lower cost-basis than similar operations who purchase harvested hemp on the open market.
In furtherance of the farming strategy, over the balance of 2019 GCGX held discussions with landowners and other stakeholders to secure land in Florida to grow and process hemp. We plan to apply the lessons learned in Colorado to any future farming operations in Florida.
The company has boots on the ground in Florida which can oversee the project avoiding many of the major pitfalls in Colorado. A farm in Florida will give the Company complete control and entitle the Company to 100% of all the revenue generated. Initially the operation will consist of a farm and processing facility which will morph into edible brand under the name "Indulge Edibles" along with oils and nutraceuticals.
The State of Florida Industrial Hemp program estimates it will be accepting applications during the first quarter of 2020. GCGX will lease land and be on standby to submit for the necessary licenses. Farming is timing dependent. According to when the State of Florida actually issues the permits a full grow of ten acres is possible for 2020, although this may be delayed subject to permits and weather conditions.
Global Consortium, Inc., is building America's First Cannabis Mall in Sacramento, CA which when completed will house Manufacturing, Distribution, Delivery, Retail, Testing, and Cultivation all under one 64,000 square foot building. The Mall will house the largest Manufacturing facility of THC and CBD Distillate and Edibles believed to be operational in the United States. Global Consortium has leased 25,000 Square feet of the building with a purchase option, the Company is working to secure a first right of refusal for the remaining 39,000 square feet.
Global Consortium, Inc., in compliance with SEC regulations, may in the future use social media outlets like Facebook or Twitter and its own website to announce key information in compliance with Reg. FD.
This news release contains "forward-looking statements" as that term is defined in Section 27(a) of the United States Securities Act of 1933, as amended and Section 21(e) of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, estimates of services and equipment markets, the release of corporate apps, growth of the platform, target markets, product releases, product demand and, business strategy. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also consider that any investment in securities is at risk.
Details of the Company's business, finances, appointments, and agreements can be found as part of the Company's continuous public disclosure on otcmarkets.com.
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SOURCE Global Consortium, Inc.