Just as with most industries, there are several revenue generating streams in the new green economy of cannabis. There is direct ownership of licenses and then there are indirect opportunities such as real estate, consulting, financing and banking, packaging, equipment and supplies and vendor services such as accounting are quintessential to business operations. GoVerde EDC is operating as an indirect service provider to social equity entrepreneurs developing and ongoing concerns.
In this role, we have the unique ability to help develop the construction and operating budgets and business development plans for each company as well as assess, track, and advise on their performance. As part of our assessment, we have determined the capital needs and income potential for each venture so that we can advise them how to capitalize their start-up cost and manage their cash-flow.
Initial start-up cost for each site include site planning, rent deposits, project management licensing fees, construction build-out, equipment and the first 12 months of operating cost for elements such as payroll, rent, utilities, cost of goods sold, testing, packaging, local and state taxes, track and trace and transport. The build-out of each site is the run-way to achieve the projected cash flow positions.
Revenue projections are based on operations commencing in year two. Market prices are projected for the purchase of flower and biomass trim from the cultivators which were projected to be $1,800 and $100 respectively in 2019.
Capitalization efforts are being structured for friend and family partner investments and the ability to raise capital via a platform structure based on the Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It passed with bipartisan support, and was signed into law by President Barack Obama on April 5, 2012.
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