GCAC CEO Brad Moore answers questions about closing a definitive agreement with EMTRI, California-based cannabis specialists. Sub-licensing GCAC’s Efixii software to Californian cultivators to track cannabis lifecycle data of a minimum of 10 million grams in year 1 generates US$1.5M in SaaS revenues for GCAC in the 2022 financial year.
Q: GCAC has just secured an impressive $1.5M in revenues in your first Efixii B2B sub-license deal.
Does this mean GCAC is profitable now?
A: We’ve launched the Efixii B2B sub-licensing model with a bang, for sure. We worked hard on this deal since October 2021 to make sure it was right for all parties, us, EMTRI Corp., and their cultivators. True to our narrative of using Efixii to create a better-branded product for consumers and be a real-time proof of cultivation from cultivators to licensed distributors all the way to consumers is unheard of anywhere in our industry. I believe this is the first of many B2B deals to come, watch this space.
“I believe this is the first of many B2B deals to come, watch this space”GCAC CEO, Brad Moore
Q: Tell us about the cultivators EMT token model and how it works?
A: It’s pretty simple really, cultivators use Efixii to attest to the lifecycle of every batch of cannabis they grow. The licensed distributors that buy their cannabis love this transparency and pay a premium of around 80c a gram for cannabis grown in this manner. So, the distributor is happy, but what’s in it for the cultivator? Well, the main friction point for legal cannabis sales in California is getting the cash to the cultivator in a timely manner, as distributors have dozens of other cultivators’ cannabis ready for sale too. So, while a cultivator’s cannabis is with a distributor unsold, the cultivator earns 12% APY in interest on the value of their unsold cannabis at $2.20 per gram, paid in EMT tokens. Interest is paid monthly to ease cash flow for cultivators pending the sale of their batch. The interest payment stops once a batch is sold and the cultivator is paid. This could be after just one month or up to a maximum of six months. Either way, the cultivator wins as they either earn interest or are paid faster.
Q: Tell us about the distributors EMT token model and how it works?
A: To motivate the distributor to sell Efixii cultivators’ cannabis ahead of other cannabis in stock, EMTRI Corp. rewards cultivators with any unpaid EMT interest tokens. So, if the distributor pay the cultivator in month 1, then the farmer gets 1 months interest and the distributor gets 5 months interest, or if the distributor is slow and pays the cultivator in month 6, then the farmer gets 6 months interest and the distributor gets no interest.
Q: So, that’s how EMT tokens are supplied. Where’s the demand?
A: Remember we get 80c as a premium for Efixii cannabis, well EMTRI collects this payment and uses 40c to buy back and burn the EMT token on Uniswap, a defi exchange. The EMT model will never issue more EMTs to cultivators and distributors than it buys back with 40c a gram! The other 40c is split as 15c paid to GCAC as software licensing revenues and 25c is for EMTRI’s operations. GCAC as a public company is not promoting or otherwise endorsing the EMT token. That decentralized finance instrument is part of EMTRI Corp. and their token-technology partner, Abbey Technology GmbH.
“With the close of the non-possession Canadian sale license, ESG functionality, South Africa, funding from Abbey Technology GmbH, and this revenue deal, GCAC is the real deal”GCAC CEO, Brad Moore
Q: A lot is happening in Q1 2022 so far. What has been the greatest catalyst of all this growth?
A: Like all things – hard work. Q1 has been an accumulation of a ton of effort throughout 2021, but in all fairness, something shifted in Q4 last year when other people started talking about cannabis on the blockchain besides us. With the close of the non-possession Canadian sale license, ESG functionality, South Africa, funding from Abbey Technology GmbH, and this revenue deal, GCAC is the real deal.
Q: You stated that EMTRI makes you profitable. Can you maintain this with such a wide variety of deals?
A: The beauty of Efixii is through the simple process of attestations on the blockchain. The value for each different solution is how you slice the data depending on what your needs are. This doesn’t cost more money, it’s just about analysis of what is already there.
Q: Can you give us a glimpse into 2022 revenues?
A: If we haven’t announced it, we don’t talk about but what I can say is that between the opportunity to sell to Canadian veterans with our sales license, 33% ownership of a South African insurance book, unlimited ESG sales opportunities, and literally tens of thousands of cultivators requiring EMTRI type deals I see sunny days ahead.