Hero Technologies (OTCMKTS:HENC), which is involved in the cannabis industry and one of the well-known vertically integrated operators, made a major announcement on Wednesday. The announcement was in regards to its subsidiary company BlackBox Systems and Technologies LLC.
Hero announced that BlackBox has put forward the details regarding the profit projection, costs, and revenues when it comes to cannabis production at a specific property. The property is located in Jackson, Michigan, and spans across an area of as much as 120 acres.
The company is looking to acquire the aforementioned property and it goes without saying that it is going to constitute a significant acquisition. More importantly, it is important to point out that Hero Technologies has major plans for the property.
Hero is planning to set up advanced sun chambers at the property in addition to high-tech greenhouses. The aim is to produce high-yielding cannabis in a cost-effective way throughout the course of the year. In addition to that, the company is also looking to cultivate cannabis in hoop houses at this site.
Another important thing to point out with regards to the property is the fact that it can accommodate as many as 500 sun chambers. This is a key figure since one sun chamber has the capability of producing yearly high margin revenue in the $5 million to $10 million range.
The annual revenues from the property are going to depend on the blend of wholesale and retail sales accomplished by Hero. However, estimates suggest that depending on the blend and the possible price volatility in cannabis, BlackBox can generate revenues in the range of $15 million and $38 million. This estimate is for the pilot phase of production.
In phase III, the projection for yearly revenue stands at as much as $100 million. It has also been estimated that it is going to cost around $6.5 million to complete the pilot phase.
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.