Louis Kyron: CCIM
Danny Brody, VP: TGOD
Q& A
70
CCIM: One of the investment strategies that we recommended in the summer that has yielded stellar returns is one of finding those companies with a relatively low market cap, ample cash or near-cash assets, and growing revenues. Because TGOD is private, such information is not yet in the public domain. So again, to the degree that you can share – what is TGOD’s market cap at the anticipated IPO price, cash on hand, and revenues? If you cannot get into specifics, perhaps you can advise of your relative size and patient in comparison to perhaps an existing public company?
TGOD: That’s a great investment strategy and I can’t say I disagree. A number of our management comes from the finance world where we understand capital markets. We have positioned TGOD strategically so we are able to compete with the biggest in the industry.
One of the metrics analysts use to determine market capitalization is called “Funded Capacity”. They say that per 1 kg of funded capacity, your market capitalization as a public company would be worth $21,000 (as at today’s date). As I mentioned earlier, with a funded capacity of over 116,000 kg’s of premium high-quality organic cannabis you can begin to extrapolate where we would sit. Our market cap at our last financing, pre money was $200 million. It’s likely going to be well north of that but just how north is hard to say at this point.
Total dollars raised equates to just over $150 million.
Regarding revenues, all you have to do is multiply these numbers (116,000 kg) by 1,000 to get from kg’s to grams, then by your average sale price of $8.00 per gram to see what kind of numbers we’re looking at and it’s close to $1 billion a year once the facilities are complete.