This is a fabulous opportunity to celebrate our progress. For us, it is the best of time and a new year to boot. 2019 was a incredible year. Our hemp-related predictions came true. By stepping aside, we saved millions of dollars from the ashes of other peoples’ miscalculations. Mistakes are the steppingstones to our future. Our obsessive desire, coordinated thoughts, aims and actions; concentrated energy and constant application has given us a Business Model that may appear unorthodox by eliminating contentment.
We are a relatively new corporation, being charted in Pennsylvania on July 17, 2019. Please don’t discount our youth or be predispose of our enthusiasm about industrial hemp; quite possibly the most important plant on earth. Its fatty acid and amino acid profiles are identically aligned with human DNA. As a food source, it offers protein, omegas and dietary fiber in perfect proportions to our nutritional needs. Agronomic advantages of industrial hemp are at the cutting edge of innovation. Since the beginning of time, humans have embraced hemp in every facet of life. Indeed, without hemp, industrial society would not be possible. The practicality and historical value of hemp cannot be denied, even when discrimination, prejudices, and corrupt political policies prevail.
Only in the last decade has hemp been rediscovered. Being illegal during the last century, hemp remains under a rain-cloud of confusion, federal shenanigans and disinformation so invasive that an effective infrastructure cannot develop. Even today, it's hard to believe how convoluted the hemp market has become. Our collective research usually uncovers at least one misstep per day. It is difficult to formula a business prototype that can adjust on the fly. Coping with what appears to be a changing reality had strained our commonsense and makes planning for the future complicated.
I believe if Northridge Corporation was created five years ago, using the assumptions at that time, we would have been on the wrong end of being a profitable company, and instead, attempting to justify numerous errors and losses. Be as if may, we are very fortunate to assess what has transpired with our powder dry and not trapped like all the public companies in the cannabis space.
Being smart was stepping aside and learning from someone else’s blunders. Like regurgitated hemp, we are new but possess the capability to be a decisive factor in the emerging hemp industry. In the last few years, we have dissected, analyzed and thoroughly investigated every aspect; we have not overlooked a single influence or technical innovation. Our footprint is not fixed on the ground of high profiles, expensive assets with little marginal worth. Instead, we are flexible, lethal almost to the point of arrogance, because our data projects a pathway into the future.
What has been learned?
(1) Hemp is a commodity, subject to pitfalls of supply and demand. Its demand curve, the relationship between the price of hemp and the amount of it that consumers are willing and able to purchase at any given price, has received a major setback from U.S. Food and Drug Administration. Even though the FDA recognizes the potential opportunities that cannabis-derived compounds may offer, most companies are marketing products containing cannabis compounds in ways that violate the Federal Food, Drug and Cosmetic Act (FD&C Act) and that may place the health and safety of consumers at risk. Under the mandate, the agency is committed to protecting public health and required to take steps to improve the efficiency of regulatory mechanisms, which means lawful marketing of appropriate cannabis-derived products will be impossible since “qualified” hemp processors and manufacturers must submit to rigorous and expensive trials.
The agenda of the FDA is to completely restrict CBD use and force companies to followed time-consuming protocols for approval. Such circumstances will cause major corporations to stay out of the CBD markets. The result would be reduced legal volumes and the black market to remain a viable source for unlawful CBD products.
Using our proprietary analytics to calculate the behaviors in competitive markets, combined with supply curves, we estimated the equilibrium price (the price at which sellers together are willing to sell the same amount as buyers together are willing to buy) and the equilibrium quantity (the amount of that good or service that will be produced and bought without surplus/excess supply or shortage/excess demand) of that market, the conclusions suggest lower hemp prices to accelerate at a rapid pace over the next three years. The only positive sector would be in the disciplined markets supporting clinical research and pure CBD isotopes for federally licensed suppliers.
(2) Hemp requires immediate and comprehensive processing. Unlike maize, plantains, potatoes, rice, sorghum, soybeans, sweet potatoes and wheat which have deep-rooted infrastructure developed over centuries, hemp has inadequate processing capabilities. What is available has been misconceived, focused on limited markets with more emphasis on regulations than achieving profitability; weak on engineering and other factors to sustain low-cost continuous processing. Infrastructure development remains a hot-button issue without a unified solution. Without FDA or other federal agency support, innovations in technology, product applications, and effective endorsement, industrial hemp will never attain its full potential. Winning the future through hemp innovation is at risk. Smart, successful managers in well-respected companies are afraid to venture into the hemp industry. What’s left would be a hodgepodge of companies with limited potential.
Billions of dollars were lost, wasted by companies and investors on faulty assumptions and misinformation. Spending money for information is far more valuable than wasting millions of dollars by creating impossibility expectations. Financial pages are full of misadventures created by impractical investments. Paradoxically, “Growing hemp will make you rich,” remains the battle cry on Wall Street. If you listened to the noise, you’re out, lost most of your money and stopped paying attention. A case in point is Aurora Cannabis Inc. (ACB) – Canada’s second-largest cannabis producer. Overvalued and undercapitalized even though the company funded over $100 million in projects, ACB can be duplicated for less than $12 million merely by utilizing what we learned in the last three years. Using a proprietary algorithm and basic research, we concluded in early March 19, 2019, that ACB was not worth $10.25 and to sell or short the stock, believing by year-end it would be worth less than $2.00 per share. Today ACB closed at $2.14. Not a lucky guess. Not one significant Canadian cannabis company is selling above its this time last year’s price or had a positive cash flow from operations in any year from 2015 to 2019. The algorithm predicted all 18 cannabis public companies we evaluated had reclined in value.
Our Business Model
We did not erect expensive structures, cultivated thousands of acres, fabricated elaborate processing plants or committed substantial resources without regard to their long-term potential or shareholders’ safety. By stepping aside to watch others lose an unconscionable amount of money, covering their mistakes by issuing more equity, diluting shareholders valued, our business model relies on information gathering, field inspections to assess failures and successes, evaluating historical data from parallel commodities such as tobacco, alcohol, coffee, etc. and other factors too numerous to mention. We attempt to understand bureaucratic interference and evaluate them within the political landscape. Like a detective searching for clues to solute a mystery, our mindset is to uncover the best means to profit from hemp.
Our business model relies on accurate information—Factual, truthful, and closely conforming to our objective standard ascertained through painstaking care, due diligence, and reliable sources. We curate information; in the field, investigating mistakes, discovering new ideas, public filings, specifically federal and state documents, published technical papers, credible research websites. Our system of checks and balances requires accurate information. If we don't have it, or able to assess difficult truths, we will never be able to effectively design a policy to evolve our business model.
With our extensive research, search systems and selected development, we plan to construct a proprietary processing plant and refining facility to produce zero THC CBD hemp from feedstock cultivated on selected acreage owned by the company.
Northridge Corporation is the perfect unicorn, and hemp 1/, especially the CBD component, is our heart and soul.
Christopher Netelkos, Vice President, Northridge Corporation
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1/ New Frontier Data, an independent cannabis/hemp industry research firm, reported that legal sales of cannabis and related hemp products in the United States topped $10 billion in 2018. According to their projections, the legal cannabis/hemp market is on track to hit $30 billion in 2023 and expand to $66.3 billion by 2025.