FAQs Archive - Empire State Greenhouses

Q: What risk mitigation steps have you taken?

We have taken major steps over the past two years in mitigating risks such as securing public and private partnerships, building solid working relationships with large proven contractors with substantial years of experience and strong balance sheets, and building partnerships with key vendors in the design, fabrication, and assembly of our growing system.

Q: What is the basis of the $25M valuation?

We are conservatively basing the valuation on the work we have accomplished over the past 2 years. In that time, we have secured ~$70 million in grants and incentives which will help finance the project or lead to cost reductions and can be used as the basis for a valuation. The financial impact of these grants and incentives provide a Net Present Value (NPV) of $40 million using a 9% rate over a five-year period, significantly higher than our $25 million valuation.

Q: It seems at some point the facility will be at capacity. What's the driver of increasing monthly revenue into the out years once full capacity is reached?

There are two main drivers: We assume 3% annual inflation, however climate change has the potential to significantly increase food prices thereby driving up our margins We assume that we can increase efficiency 1% to 2% annually by optimizing and improving our growing processes related to our state-of-the-art LED lighting system and climate control system.