Conference November 25, 2019
November 25, 2019
Rafarma’s Conference call full transcript
Mr. Vladimir G.Dolgolenko, CEO – President
WHY I DECIDED TO JOIN RAFARMA
I have heard about RAFARMA from Mr. Sreco Bojt, who at that time was my client and we have jointly run some tests on my new product ecological bio stimulant Agropharm on the fields of his Slovenian companies. And we have got quite outstanding results in production of organic products. In the meantime when I learned more about Mr. Bojt`s companies as a part of US corp. RAFARMA have shared some ideas with Mr. Bojt on further possible ways of Rafarma growth, in particular, I am talking about possibilities Rafarma can get moving part of its business to South-East Asian market. Actually, after numerous discussions I have got an offer to run the company as CEO.
WHAT NEW AREAS (LIKE PETS, DRINKS) DO YOU EXPECT TO TARGET FOR GROWTH?
At present the company is working on upgrading the line of products. Starting from January next year we will provide a new upgraded list of products including: hemp tea, CBD resin, CBD oil, CBD crystals, CBD balms, CBD gel, face and body creams, CBD pet products, organic detergents and we intend to have a full line of products offered in Thailand as well upon completion of the acquisition and announced Letter of Intent. Thailand provides us an excellent opportunity to enter a very lucrative market with unlimited possibilities for future products. Once operating in Thailand we will have access to several research facilities to research new products and also research the effectiveness and further build our current product base.
CURRENT OPERATIONS, LOCATION, PRODUCTION, EXPECTATIONS FROM THIS LOCATION NEXT YEAR, PLANS TO INCREASE PRODUCTION AT THIS LOCATION.
As of today the company has a license which allows us to grow 100 thousand square meters of cannabis. With the ever changing landscape of laws in Europe in regards to Cannabis We made the decision to expand into other global markets. We believe this will solidify the company as a truly worldwide company and will remove its dependency on one location. As we continue to grow and reach new global markets we believe we will be able to be extremely successful. Expectations from all our operations are extremely high and I believe we will have an excellent management team ready to take on the challenge of huge growth in the coming year. We also have technology that allows us to grow in virtually any environment. Aeroponic technology allows growth in even some of the harshest environments. This makes our business model extremely flexible and also allows us to maximize space and grow vertically creating the ability to harvest more product in a smaller space.
WHAT ARE THE COMPANY’S EXPANSION PLANS?
As of today we have already reached complete understanding and verbal agreement with the largest player in the cannabis market in Thailand. The LOI was signed. The final agreement and other merger formalities are currently being worked on by US and Thai attorneys. Coming to Thailand will make RAFARMA the first US public company to enter the fast developing Thailand and South East Asian market of cannabis in cooperation with the biggest cannabis production in Thailand.
For obvious reasons, we currently cannot name our Thai partner. But once the agreements are finalized, we shall be making a public announcement that will give our shareholders complete information on what will have taken place.
The expansion plans of the company also includes solidifying a strong board. We are currently working on filling out the board with members that will bring marketing expertise, financial background, harvesting techniques and overall experience in growing a company that we expect to be a huge player in the international market.
WHAT PROPRIETARY TECHNOLOGY (GROWING AND/OR BLOCK CHAIN DOES THE COMPANY POSSESS?
Rafarma possesses the most progressive technology in aeroponics which will allow cannabis to be grown under extreme climate conditions. The company will start bringing the necessary equipment for the initial tune up of the technology in Thailand. This technology was already tested by the company in various parts of the world including Slovenia and Croatia. The technology allows the increases in content of CBD oil effective components in the plant roots as opposed to the plants grown under normal circumstances. Rafarma brings to our Thai partners exclusivity for the AETSOFT cannabis control software in South Asia which would allow the company and the governments of the surrounding countries to put complete control on every stage of production and distribution of the product. This product is extremely impressive and will help Rafarma grow tremendously as the tracking and inventory control modules become more and more important.
HOW ARE YOU PROTECTING PRESENT AND FUTURE GROWING AREAS?
For the time being in Slovenia we believe we have a very organized security system at our fields which allows us to keep control on the process and work very closely with state inspectors.
In Thailand we are working with the only company that is in possession of all three necessary licenses. Thailand the forefront of the entire world for the future of medical and recreational cannabis industry and they have already established law enforcement norms and regulations for hemp growing and distribution which certainly covers all of the protection and security issues. The blockchain technology will also play a big role in the ongoing protection of fields and harvests. All products produced can be tracked from seed to sale including a module that allows the tracking of prescriptions. We believe that Rafarma is extremely well prepared in this regard.
WHAT DIFFERENTIATES RAFARMA FROM OTHER COMPANIES IN THE SAME LINE OF BUSINESS?
Rafarma has several technologies that give us a significant advantage in lowering costs and increasing production. Rafarma also has the unique opportunity of being one of the first to market in South East Asia and we believe this virtually untapped market is going to explode with opportunity. As we continue to grow and release details of our plans in the area shareholders will see this was a well thought out process and will better understand why the company decided to enter the market. Using the growing advantages such as the aeroponic technology will set the company up to succeed in multiple ways and help the company be a truly world wide corporation. The expectations of the company are to grow a superior quality product at a greatly reduced price in comparison to our competition.
Thailand in itself creates a great competitive advantage. We have our LOI signed with the only company that has all 3 necessary licenses and this allows us to do everything from seed to sale without outsourcing and paying unnecessary costs. We believe this partnership will be extremely profitable and bring Rafarma into the new year with huge opportunities.
We also intend to continue our business model and enter a major US exchange in the future. This will be a process and we intend to become a fully reporting company as early as the first part of next year to increase transparency and better our communication with our shareholders. As we complete these tasks we will position ourselves aggressively not only throughout Europe and Southeast Asia but also throughout the world.
IT IS TIME TO END THE CONFERENCE CALL IS THERE ANYTHING ELSE YOU WOULD LIKE TO SAY?
I have been involved in many companies as I discussed at the beginning of the call. I feel like they have prepared me well to help Rafarma become what we envision it becoming. I feel that we can make a difference not only financially but also help many people along the way by providing a superior product and being able to improve knowledge on medical marijuana. We intend to be one of the premier companies in the world in regards to sales and in regards to research and development of new and better products. I believe my role in this company will be very fulfilling and I think that there are some extremely exciting times ahead in the very near future. I appreciate everyone’s time on this call and thank you all for listening. I look forward to doing this again at a future date.