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CASE STUDY 2
The low market cap makes starting or increasing a position relatively painless and enticing. There are very few companies in this space right now with such a low market cap combined with such potential. You will notice that this small list of what-ifs did not include Spyder Vapes Inc.
For the year ended January 31, 2018, revenues from two of the Spyder Vapes Ontario location was in excess of $730k. Spyer Vapes, per the ACG news release, is sourcing locations in Alberta, and BC. Spyder Vapes also adds a nice element of vertical integration. The market cap of ACG is therefore just under 20x the existing revenues from Spyder Vapes alone.
So is no revenue a concern? It necessarily has to be but all indicators are that growing revenue streams will be coming on line and soon. My personal opinion is that the current market cap and upside potential more than offsets for those looking for a company with this risk profile as part of their cannabis industry exposure. That may sound like a recommendation but it is not. It is however examples of mitigating factors one must weigh as part of their due dilligence because LOIs and MOUs and future potential events are just that – until they happen they have not. It is that simple.
We do not want to repeat everything that we explored in detail in our May 2018 issue. For the detailed content and Q&A, please review our May issue.
However, let’s now move to “invest in the team”:
Dennis Petke, CA
CEO, President and Director
Harvey Lawson, CFO
Rupert Shore, Barrister & Solicitor, Director
Sina Pirooz, Pharmacist, Director
Ian Lambert, B.Comm, Director
Charles Rendina, Internatonal Business Lawyer, Regulatory and Financial Advisor
Edmund Obasi, MMath, Advisory Board
Robert Carveth, International Business Expertise and R&D Background, Biotechnology and Government Relations Advisor