Rally On, Traders!
A lot of people tiptoe around "the green gold rush" because the state-by-state deregulation process makes some social networks nervous. But
Codebase Ventures
(CODE in Canada, BKLLF in the States) isn't on that side of the business. The leaps this little company is making are working a similar but separate theme elsewhere in the industry.
Call it BKLLF or call it CODE, this company just announced that they're talking about buying a 45-acre farm perfect for perfectly legal industrial hemp. Those "other" products aren't even on the table there.
Congress authorized hemp last year. By definition, it doesn't have any psychoactive effects, even though it's closely related to the plant that remains tightly regulated across the states. People with a license and proper oversight can plant it, sell it, process it.
That's a big deal for little BKLLF, which was a $0.03 stock last time I checked. Because hemp can be processed into cannabidiol or CBD, and that stuff is worth up to $450 per OUNCE.
Figure an acre can grow 8,000 pounds of raw plant per harvest. That material can then turn into 300 gallons of the oil. That oil is practically priceless, with demand far outstripping supply.
BKLLF just bought 45 acres in Central New York, Offer price is barely $125,000. At that price, it only takes $3 per acre for the deal to become "accretive." What shareholder doesn't love THAT word?
Of course it's still early stages. There's no license yet and the 2019 planting season is over, unless of course BKLLF wants to build a lot of greenhouses and grow through the winter. As hot as the CBD market is, that might actually make sense!
But now that this deal has gone through, once a crop goes into this ground, my math says 360,000 pounds of potential harvest. The extraction houses will pay $30 per pound for it. Suddenly the guys at BKLLF look genius.
Management knows the sector. The CEO and a member of the board of directors helped build green gold companies like Supreme Pharmaceuticals and 1933 Industries. They've got deep relationships and intimate knowledge of where the money is moving.
Wherever they see opportunity, you can bet they'll grab it. Right now they're especially interested in the technology that's going to drive the industry now that Canada has legalized from ocean to ocean . . . although with strict rules that every would-be player needs to obey or become a painful example of the high cost of compliance lapses.
(I've been watching one green gold stock drop a harrowing 55% in the past month because they couldn't track every ounce of their output. The point has been made. Nobody else in the business wants a similar fate.)
So CODE is looking at compliance technology, better ways to track every ounce from seed to store. That's the second part of the equation, the CHAIN.
All of this is down the road, real future stuff. Here and now, CODE says the ante is just $1 million to get moving. That pays for itself with the first Silicon Valley giant that realizes there's no reason to get tangled in yesterday's algorithms. Everything beyond that point is pure wow.
Remember the ticker: CODE in Canada, now BKLLF in the States.
Happy, Happy, Happy Trading!
