Tiger Reef Issues CEO Letter on M&A and Targeting $492M Cannabis and CBD Solar Energy
25 Juli 2019 - 2:30PM
InvestorsHub NewsWire
Tiger Reef
Issues CEO
Letter on M&A and
Targeting $492M Cannabis
and CBD Solar Energy Market
MIAMI, FL -- July 25, 2019 --
InvestorsHub NewsWire -- Tiger Reef, Inc. (OTC:
TGRR) ("Tiger Reef" or the "Company"), an emerging leader in
cost-efficient clean energy solutions targeting the CBD and legal
Cannabis markets and producer of ultra-premium rum
under the Tiger Reef® brand designation, issues the following
letter to Shareholders from the CEO:
Dear Valued
Shareholder,
I want to start off today by
expressing our deepest gratitude to our most loyal and committed
shareholders. It has been a long road to get to our present moment
of opportunity, and we couldn't have made it here without your
continued support. Today, I want to present a
map of how
we plan to reward that commitment by outlining the specific opportunity
we believe
will maximize shareholder value and
future returns on capital invested in Tiger Reef.
Earlier this week, we announced
the signing of a Letter of Intent ("LOI") to acquire
Atlas Solar
Holdings, LLC ("Atlas"). We have been shopping for an
opportunity like this for some time, and Atlas turned out to be a
perfect fit for our needs as we ramp up our operations as a leading
provider of renewable energy solutions tailored to companies
operating in the cannabis and CBD sector.
It turns out that cannabis
producers use 10 times as much energy as
a typical office building. A 2018 New Frontier Data research
study estimated that total power consumption
for the entire legal cannabis industry
in the U.S. clocked in at 4.1 billion kw/h of energy. At $0.12 per
kw/h (avg cost of electricity in US), that comes to $492
million. Given the enormous growth we
are seeing in the space this year, one can imagine that number is
extremely light as far as the true scope of this target market for
energy solutions in 2019 and beyond.
The big point is this:
CBD and cannabis
producers are increasingly confronting a long-term profit margin
squeeze that is the direct result of excessive energy costs and
falling cannabis and CBD prices as the industry gradually and
inevitably evolves into a commodity market.
Tiger Reef is, to our
knowledge, the only publicly traded company targeting this problem
with a viable solution and an aggressive path. Our solar energy
solution should cut energy costs for
most cannabis producers by up to
40%, and to
do so with a fully-renewable energy source, which drives extra
value in the form of image-building with a target consumer base
(cannabis and CBD consumers) that tends to care a great deal about
environmentally friendly energy solutions.
With growth in the CBD and
cannabis marketplace continuing to accelerate, and the number of
producers continuing to expand at a steady clip, we believe we are
targeting an enormous market opportunity with this approach. We are
pursuing this opportunity in two ways: expanding our capacity to
provide energy and expanding our sales and marketing
operations.
Our LOI with Atlas obviously
represents the first of these ideas. Atlas currently owns and
operates 34 industrial solar installations that, together,
produce over 420,000 KWh of solar
electricity on an annual basis, thereby
also generating roughly 420 solar renewable energy credits
(SRECs) each year as well. Atlas also produces a pile of
net cash flows – over $120K per year as a direct result of its
solar operations.
The second prong here is the
establishment of an aggressive direct marketing campaign to drive
home the point to producers in the space that we can help open up
their margins in many cases. This is critical. We have a
solution
that can
work,
but we have
to make sure our target market
understands that. In this case, our target market is the producers.
And we are building a sales force to create that awareness right
now.
Energy costs are increasingly
squeezing margins in the cannabis and CBD space. This is something
that will dominate strategic discussions over coming months and
quarters at many large and currently cash-rich production
facilities.
We are going to do everything
we can to be a part of those discussions and to have enough
capacity to deliver on this powerful opportunity when called upon.
We will strive to keep you updated as this process
unfolds.
Best Regards,
J. Scott Sitra, President and
CEO
About
Tiger Reef: Tiger Reef, Inc. is a developer
and operator of solar and clean renewable energy projects focused
on reducing overall energy costs and the carbon footprint for
Cannabidiol (CBD) producers and legalized marijuana growers.
Tiger Reef also has developed a line of ultra-premium rums under
the Tiger Reef® brand. For more information, visit
www.tigerreefinc.com
Forward Looking
Statements: Certain statements in this
release, other than statements of historical fact, may include
forward-looking information that involves various risks and
uncertainties. There can be no assurance that such
forward-looking statements will prove to be accurate. Actual
results and future events could differ materially from those
anticipated in such statements. These and all subsequent
written and oral forward-looking statements are based on the
estimates and opinions of management on the dates they are made and
expressly qualified in their entirety by this notice. Tiger
Reef, Inc. ("Tiger Reef") assumes no obligation to update
forward-looking statements should circumstances or management's
estimates or opinions change, other than as required pursuant to
applicable securities laws. For a description of additional
risks and uncertainties, please refer to Tiger Reef's filings with
the Securities and Exchange Commission, including "Risk Factors" in
its Annual Report filed on Form 10-K.
Tiger Reef
Investor Relations:
949.264.1475
ir@tigerreefinc.com
Press & Media Inquiries:
EHC Branding
Agency
Info@EHCBrandingAgency.Com
(626)
MJ-BRAND
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