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OrgHarvest, Inc seeks to launch cannabis cultivation and production operations in Las Vegas, Nevada, employing a high-tech 142,000-square-foot glass greenhouse imported from the Netherlands. It will have the capacity to produce 750 pounds of cannabis flower per week, enabling the Company to potentially gross revenue of about $42 million after its second year of operation.

The Company is focused on the acquisition of and/or joint venturing with cannabis dispensaries as well as the production and distribution of cannabis flower with high THC values and oils used in manufacturing edibles, beverages, and pharmaceuticals.

THE SECURITY WE OFFER

EXPANDING MARKET

Thirty states have already passed legislation permitting medical cannabis use, and nine states and the District of Columbia allow full adult use.

Recent research indicates that as the legalization of cannabis continues to be adopted in more states, the cannabis industry has been growing steadily and rapidly. According to Oakland-based cannabis angel investment network, The ArcView Group (Executive Summary, 5th Edition), national legal sales for 2016 grew to $6.7 billion from $5 billion in 2015, fueled by explosive growth in adult use market sales. The growth continues a robust pattern that ArcView estimates will lead to a $22.6-billion market in 2021 at a 27% compound annual growth rate.

In November 2016, a new set of regulations paved the way for a recreational marijuana market in Nevada which is expected to register a compound annual growth rate of 42% over the next five years thus adding up to $433 million in sales annually by 2021. Thus, our goal is to become an industry leader in the cannabis industry, beginning with a focus on key regions of Nevada. The target market for the Company is comprised of retail stores, processors, and other points of sale serving the 45 million tourists (as reported by the ArcView Group that visit the Nevada cities of

Henderson, Las Vegas, Lake Tahoe and Reno each year, as well as adjacent producers interested in local businesses and farms that create high-quality cannabis products.

Shares Of Common Stock

$0.25 Per Unrestricted Share Plus Bonus

$1,000 Min Investment

 

BONUS

For investments between $1,000 and $2,499.90 -

There is a bonus of 50% shares of common stock (restricted).

 

Example: For an Investment of $2,000, the investor will get:

a. 8,000 unrestricted shares of common stock

plus

b. 4,000 restricted shares of common stock

Effective price per share: ($2,000 / 12,000) 16.27 cents per share.

 

For investments higher than $2,500 -

There is a bonus of 100% shares of common stock (restricted).

 

Example: For an Investment of $3,000, the investor will get:

a. 12,000 unrestricted shares of common stock

plus

b. 12,000 restricted shares of common stock

Effective price per share: ($3,000 / 24,000) 12.5 cents per share. ​

 

Disclaimer: Please read the Offering Circular in the Documents section below, to learn about the risks.

Investors are advised to fully understand the risks.

ABOUT OrgHarvest, INC

OrgHarvest is public OTC Market company traded under the symbol "ORGH" in the Nevada recreational and medicinal marijuana industry dedicated to cultivating cannabis. Our goal is to provide high-quality cannabis to retail marijuana stores, manufacturing and other cultivation facilities in Las Vegas, Reno, and the surrounding areas.

OrgHarvest will not only strive to provide high-quality cannabis but produce it in the most sustainable manner.

 

We will position OrgHarvest to become a leader in the industry of organic cannabis.

 

 
 

PROBLEMS and SOLUTION

Problem: INCONSISTENT QUALITY AMONG STRAINS

It is not uncommon to have the same strain with a different chemical composition even if it is from the same grower. In addition to genetics, there are many many contributing factors to the chemical composition. Most of the time these factors cannot be controlled.

 

Problem: HIGH COST OF POWER AND WATER

Both indoor and outdoor growing are water intensive. In general,  indoor growing relies on artificial lights to improve both the quality and the quantity of the crop.

 

Problem: ONE CROP PER YEAR

An outdoor grow facility can grow only one crop per year. Even in a 'sunny' state as Nevada. See below calendar from Leafy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Problem: NO CONTROL OVER GROWING CONDITIONS

The biggest issue with outdoor is lack of control over natural conditions and unwanted chemicals.

 

Solution: HIGH-QUALITY GREENHOUSE FACILITY 

Built by the best.

IN THE PRESS

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Solar Powered

Maximum Growing Results

Minimal Water and Energy Source

Sustainable and Efficient Heating Sources

Cost-Efficient Water Savings and  Recirculation 

Integrated Heating and CO2 Management

BENEFITS OF INDOOR CANNABIS GROWING

 

Year-round cultivation.

Indoor cultivation isn’t seasonal. With the right set-up, indoor growers could theoretically produce cannabis any time anywhere in the world. They are not limited by adverse environmental conditions that may impact outdoor farmers who can only grow in favorable climates. Indoor cannabis can grow all year round in otherwise inhospitable areas, where dampness and rain would increase the likelihood of mold infestation and disease if the plants were outside. Although the yield of indoor grown plants is generally less than that of a comparable number of outdoor plants, multiple indoor grows throughout the year will produce more cannabis than an outdoor summer garden.


Control over growing conditions.

Indoor cannabis plants are more sensitive than outdoor plants and, therefore, a cultivator must carefully monitor and adjust various factors within a closed, interior grow-room. A skilled indoor grower is able to control all aspects of light, air flow, soil, and nutrients that affect the plants. If done well, this creates an ideal situation for breeding purposes, research and development, and the preservation of unique genetics. For example, if a cannabis cultivar has an attractive purple color that appeals to consumers, indoor production can focus on that characteristic and target it in upcoming generations of the plant’s life cycle.


Product standardization.

As the cannabis industry matures, consistency and predictability will be required to standardize a medical product and to gain approval in the pharmaceutical sphere. Standardization is necessary for a reliable, reproducible product that can be researched during clinical trials. In order to achieve such standards and protect plants from unwanted influences, there must be regularity and consistency in every aspect of the growing procedure—water, light, humidity, pest management, etc. This can be very challenging for even the most meticulous outdoor cultivator, as it is difficult to control humidity, fungal infestation and other environmental factors that can adversely affect a sungrown cannabis crop.


“Boutique” production.

Cannabis consumers want a nice looking product with a stellar aroma. Dispensaries place a premium on “bag appeal” when displaying cured cannabis flowertops. A skilled indoor grower can carefully manipulate various environmental factors to accentuate desired traits, resulting in cannabis that looks great and smells divine. This in turn translates into a more valuable product when cannabis goes to market. A common misperception is that the potency of cannabis grown indoors is higher than sungrown cannabis. (“Federal sources as well as independent testing labs actually find similar potencies when best practices are used,” according to Mills.) Yet, indoor cannabis tends to fetch a higher retail price than sungrown, which costs less to produce. Outdoor growers are able to cultivate their crops with minimal overhead, less equipment, and less electricity, but the lower price-tag doesn’t necessarily mean lower quality medicine. Again, it’s largely a matter of perception and bag appeal.

WHY INVEST IN CANNABIS

Many well-known companies trade at prices that are rich. But some of the biggest cannabis firms’ EV/Revenue ratios, as calculated by PwC, are sky-high:​

• Canopy Growth CGC, +5.51% : 128 times revenue

• Aurora Cannabis ACB, +0.00% : 133 times revenue

• Cronos Group CRON, +1.13% : 257 times revenue​​

The effective price per share (if investing more than $2,500) is 12.5 cents per share. If everything goes to plan, in the second year will have about $40 million in gross revenues and will have about 80 mil shares outstanding, that is about 50 cents per share. At 133 times revenue, the price per share would be $66.50. IMAGINE THAT!​

WHY NEVADA

According to a new report by RCG Economics LLC and The Nevada Dispensary Association (NDA), which represents 90 percent of dispensaries statewide, taxable cannabis sales surpassed $525 million in the period from July 2017 to July 2018. The sales generated total economic benefits of almost $1 billion. The report predicts that recreational marijuana sales should hit compounded sales of $4.9 billion (in 2018 inflation-adjusted dollars) by July of 2024.

"SHOW ME THE MONEY"

Financial Plan - Revenue Model

 

Expected Pricing
Based on current market trends on cannabis pricing in Las Vegas for the past year, we estimate a price of $1,800 per pound in Las Vegas by July of 2019. 


Our Debets Schalke Glasshouse is expected to produce 750 pounds of cannabis a week, or approximately 3,000 pounds a month. This 3,000 pounds will yield approximately 3,000 pounds of trimmed, ready-for-sale cannabis flowers and 800 pounds of cannabis trim each month.


This trim is extracted into a THC concentrate. We plan to purchase a midrange extraction machine in Q2. We expect this midrange machine to run between $110,000 - $125,000. A mid-range extraction machine will provide at the very minimum, 675 grams per day, and at $6 a gram, we would see an income of about $4,000 per day, or $120,000 in a month. ROI at that rate can be achieved in 65 days.


At the highest capacity, of about 1900g grams a day, the income would be about $11,500 per day or about $345,000 in a month. In Vegas, concentrates are selling for $15 a gram, so these numbers would more than double. By only processing our trim, some 200 pounds a month, with a trim yield of 10%, we would expect to see about 1,000 grams of processed concentrates a month. We expect to receive about $15.00 per gram, processing 1,000 grams of our own trim for a total of $15,000 a month for our flowers.
 

We will offer processing services for other cultivation licensees in Nevada and are currently reaching out to those potential partners now.


We will purchase trim for $300 a pound, starting in Q2, and begin offering concentrates at that time. Our raw plant material will be approximately $6,000 a day, and we will produce about 1400 grams per day, or 42,000 grams a month. Priced at a low $6 a gram, this would yield $252,000 in the first month.


Currently, grams are running $30-55 in Vegas, and the pricing has been rising due to higher demand. We believe pricing should stabilize, and grams should lower to $15 a gram by Q2in Vegas. $15 a gram lifts our projected income to about $630,000.


In our forecast, we are using $15 per gram starting Q2 for our own trim, and $10 per gram Q3 for a product made with purchased trim. We believe our trim will be far more superior, due to the building and strains we are using, so our internal product will have more THC, and thus more valuable.

 

 

 

THE MARKET

 

Thirty states have already passed legislation permitting medical cannabis use, and nine states and the District of Columbia allow full adult use. Recent research indicates that as the legalization of cannabis continues to be adopted in more states, the cannabis industry has been growing steadily and rapidly.

 

OrgHarvest has a distinct market: retail stores, processors and the 55 million tourists that visit Las Vegas and Reno/Lake Tahoe each year and adjacent producers interested in local businesses and farms that create products from the ground up.

The past 10 years have seen a reversal from the days of closing cannabis shops to a future with the Nevada cannabis industry that been growing steadily, and now rapidly since the passage of laws allowing the distribution of marijuana. Coupled with Nevada’s significant barriers to obtaining a cannabis license, OrgHarvest’s licenses insure fairly protected potential business expansions from cultivation centers into to establish retail stores, as well as processing and testing facilities. This strict limitation of other competition creates a strong indication of long term projected income.

According to Oakland-based cannabis angel investment network, The ArcView Group (Executive Summary, 5th Edition), national legal sales for 2016 grew to $6.7 billion from $5 billion in 2015, fueled by explosive growth in adult use market sales. The growth continues a robust pattern that ArcView estimates will lead to a $22.6-billion market in 2021 at a 27% compound annual growth rate.

 

THE ORGHARVEST TEAM

OrgHarvest’s management team and founders bring together unique and diverse backgrounds in terms of education, experience, and expertise. Having an award-winning team behind OrgHarvest that is dedicated to strain development and organic production will be the key to producing high-quality THC flower. All of the products the Company distributes must first pass inspections conducted by independent third-party testing facilities followed by internal inspections before being delivered to end users.

 

The OrgHarvest management team has many years of combined business experience and is comprised of senior executives who each have a commendable track record in the technology industry.

Fank Celecia

 

CEO

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Mr. Celecia’s background in general management, finance/administration, strategic planning, financial
planning and analysis, procurement operations, telecommunications make him an excellent member of our management team and board
of directors. Mr. Celecia received his Bachelor of Arts degree from the New York Institute of Technology and served aboard the USS Forrestal CVA 59 in the United States Navy, as well as in the Vietnam war, during which time he was awarded a bronze star, which is a United States decoration awarded to members of the United States Armed Forces for either heroic achievement, heroic service, meritorious achievement, or meritorious service in a combat zone

Keith DeSanto

 

CSO

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Graduate of Northeastern University with B.S. in Mathematics

Managed and CEO owned  NASDAQ Broker Dealer

Purchased Rhamnolipid companies in 2004

Holds patents for citrus, cannabis, and hemp Rhamnolipid Patents.

15/899,873 - Preventing and destroying Citrus Greening and Citrus Canker using Rhamnolipid.

15/899,494 - Using Peptides encapsulated in Rhamnolipid Liposomes for Agricultural applications.

15/945,978 - Rhamnolipid Fertilizes and sprays.

15/946,049 - Cure and prevent diseases in plants, bushes and trees using rhamnolipids.

5/946,277 - Peptides and rhamnolipid liposomes inhabit bacterial replication in plants, trees and bushes

Carlos Calixto

 

COO

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Professional Innovative in sales and marketing experience with high-volume business operations.
Creation of strategic alliances with organization leaders to effectively align with and support key business initiatives. Driven to manage costs and establish strategic, mutually beneficial partnerships and relationships with users, vendors, and service providers. Mr Calixto has extensive experience with channel development and project management in the Cannabis industry with over 6 years of large scale project planning and development working
with Debets Schalke from the inception of the company. Mr Calixto oversaw the project
from the beginning and laid out plans across all stages of development.

Rick Snelson

 

Master Grower

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Mr. Snelson has over 34 years’ experience developing proper horticulture methods in his own cultivation operation, including working as the admin supervisor to create Sativa and Hybrid strains in his own cultivation operation in Palm Springs, Calif. Mr. Snelson’s wide range of skills includes both indoor and outdoor greenhouse operations. Mr. Snelson has experience in organization and administration in a grow operation, including, but not limited to, oversight of staffing, training, motivating, coaching and supervising greenhouse staff. His maintenance of quality assurance, inventory and safety controls, as well as ensuring strict adherence to standards and regulations. Mr. Snelson's accomplishments include an introduction of upscale medical and recreational cannabis strains.

USE OF FUNDS

                                                                                         

(1) Funds allocated as estimated by the Company in order to purchase substantially all of the membership interests of Greenway pursuant to the Greenway Purchase Agreement. See “Description of Business — Overview — Phase Two — Medical Marijuana Cultivation and Production License” for more information.
(2) The Company intends to use this portion of the proceeds to purchase the First Facility Property, an approximately 5 acre parcel located in Henderson, Nevada. See “Description of Business — Overview — Phase Three — Cultivation and Production Facility” for more information.
(3) Funds allocated for required deposit on key materials and plans to construct the Company’s cultivation greenhouse.
(4) The Company will use a portion of the proceeds to fund greenhouse assembly and materials, including, but not limited to, concrete slab and footing, wall-truss structure, interior glass wall divisions, glass walls, roof and exterior house wall panels, and electrical, mechanical and plumbing technicians. Except in the 25% scenario above, the Company will also use this portion of the proceeds to fund the grading of the purchased parcel and power hookup for its operations.
(5) The Company will use this portion of the proceeds to purchase office furniture, plants,fertilizer,pots and air conditioners for its operations.
(6) Currently, the Company does not pay any of its employees or directors. However, after the termination of the Offering, the Company intends to pay salary to its Chief Executive Officer, Frank Celecia, its Master Grower, Rick Snelson, and upon conclusion of the Company’s negotiations with him, the Company’s potential Chief Operating Officer, Carlos Calixto.

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