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SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) On A Bull Run

SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO) On A Bull Run
Written by
Jarrod Wesson
Published on
July 26, 2017
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SUNSET IS GRP INC COM USD0.001 (POST REV SPLT (OTCMKTS:SIGO), the licensed medical marijuana business, jumped recently on heavy volume after the company noted that it was going to add 54,000 square feet of growing space. The market understood that more growing space means more revenue at the end of the year and pushed up the share price. Have a look at the recent share price action before we provide you the most relevant details.SourceBusiness and Recent DevelopmentsLet's review the business model of SIGO. Sunset Island group runs a licensed medical marijuana business that grows, manufactures and distributes cannabis in the US. The firm already farms on 12,000 Sq.ft, and with the current expansion plan, it has increased its overall capacity to 22,000 Sq.ft. Let's see the most outstanding developments in 2017.On Feb 3, 2017, the press release of Sunset Island Group, Inc. read that the firm has launched a medical cannabis division. This will be a driving force for its mission to be a market leader in providing turnkey solutions to the medical marijuana industry. The firm also aims at providing distribution channels for the firms with a well-established network. T.J. Magallanes, the CEO of the firm, said:

We are looking to use our extensive experience in the medical cannabis industry to bring together a number of requirements, from a licensed manufacturing facility, sales, marketing and inventory management to warehousing, security and transportation with the intent to positions us as the industry’s leading distribution platform.Source

A press release released on Feb 17, 2017 announced that the firm started work on the development of a CBD dietary supplement product. The supplement is expected to feature 2-oz stress relief beverage developed from the best quality Hemp/CBD oil and real fruit. The firm aims at selling its product via its website and other websites, such as Amazon. The supplement is expected to be developed by the highly experienced chef to assure taste and quality. Considering the growth opportunities available in the market, the market welcomed this move.On April 04, 2017, Sunset Island Group, Inc announced that it filed for a permit to expand its business from 12,000 Sq.Ft to 22,000 Sq.Ft, with which the firm can increase its capacity to 4,000 pounds. It is also expected to increase revenues by $4 to $7 million per year. The report also stated that its initial harvest would be done during July/August.The news that made the market move On July 20, 2017, the firm announced that its entire run had been pre-sold to California based supplier. After its successful stint in the market, the firm aims at further expansion. CEO T.J. Magallanes explained the news with the following words:

"This is our first real opportunity to share our plan with the investment community, so let's get into some of the detail. First, we are set up for year round harvesting. We have staggered growth in our initial grow space in such a way that we should remain in a constant state of "harvest". A company like ours that has product available year round is an attractive resource for dispensaries across the state. We have an excellent, experienced staff including security and our team is committed to a methodical, but aggressive build out of the business over time. Total greenhouse space with this first expansion should reach 90K as processing and manufacturing space is required as well for drying, trimming, etc." Source

The operation is expected to generate a conservative $200 annually per square foot of grow space over time. The CEO also commented that the the harvest is being sold at a slight discount as compared to the competitors. It is a smart move, as it will help build name recognition and brand equity. He also noted that SIGO does not have convertible debt, so there's no dilution risk. Finally, it was also noted that it has a little over 4 million shares in the float and 50 million shares outstanding. ConclusionSunset Island Group, Inc. is operating in the exciting medical marijuana industry, which is growing at a high pace after recent legalization measures. The company is piggybacking off this by expanding its grow space, developing new products, such as the CBD dietary supplement product announced in February, and has already been able to sell its entire run. To sum up, the company is growing and has clients even before the harvest is ready. If the good news keep coming, we don't really see why the share price would stop rising; rather it is expected to maintain the upward trend.We will be updating our subscribers as soon as we know more. For the latest updates on SIGO, sign up below!Image courtesy of Joe via FlickrDisclosure: We have no position in SIGO and have not been compensated for this article.

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