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500k H.3 seeds by June 20
30/70 split
.63 cents per seed to ECS based on sale at .90,
ECS profits $315,000.
Upfront cost $21,200 to be refunded at harvest.
Capital Needed
$21,200 plus 5K for testing, $26, 200 total needed by 2/1/2020 t -
Curnativ (Colorado) H.3 Hemp Seed Production Contract
We have contracted with a Colorado company, Curnativ to grow and produce 2M-4M H.3 seeds by June 12, 2020.
30/70 split on post harvest profit
ECS Profit $.63 cents per seed = $1,260,000-$2,520,000
Capital Needed Now
$50K, refunded to ECS at harvest plus $10k for testing
Total needed $60K -
CO 3M Seed Contract and R&D $145k
WI .5M Seed Contract $26.2k
ECS Operations through June $200k
ECS CA Registration Property Total Needed: -
Extensive R&D project with Curntiv, company growing Hempress 3 seeds in CO.
Project to include pheno selecting the most stable, highest ratio producing Hempress 3 genetic. ECS will produce Hempress.3, a superior genetic for next seasons farmers. ECS will sell exclusive and or non exclusive rights to this genetic for 10M plus. Current offer includes a Chinese Company who wishes to distribute our genetic throughout Asia. Compilation of the project is projected for fall 2020. -
On Target Applications: 5 year Term
50K upfront licensing fee, 20% royalty fee for all H.3 clones, 10% royalty fee for all hybrid materials.
Projected clones produced 2020 1.1M @ $3.75,
Total Sales 4.3M
2020 Royalty Payments to ECS, $877,500
Paid Monthly starting 4/1/2020 -
Example: $500,000 Capital Contribution: 5% equity,
Preferred price of $100 per unit. CO & WI Maximum Seed Produced
4.5M @ .63 cents = ECS Profit $2,835,000
Payout = $283,500 Input Costs for ECS = $102,200
Refunded at harvest = $72,200
Total Cost for Seed Production = $30,000 -
10M gross sales for Material Transfer Rights of the Hempress.3 and Hempress.3 10M at 5% equity =$500,000
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On Target Applications: $877, 500
ECS Profit 2020- $1,877,500-$2,977,500
500K Capital Contribution, 5% Equity
$93,857- $148-750 -
Seed Sales $2,835,000
Licensing Agreements $12,297,500
Total $15,810,000
5% Equity = $795,000
10% Equity= $1,581,000