CANNAINVESTOR Magazine Unites States March / April 2019 | Page 199

That same revenue number had a key descriptor that I spelled out for you. In the investor deck for where it originated, it is a footnote for you to find. The US$72M value is derived using an annual run rate. Quite simply, an annual run rate is an annualized calculation. It is not clear from the investor deck if that value was derived from 12 months of data yet to be finalized or something less … 9 months … 6 months … a quarter … two months … one month? Remember, a red flag is just a sign to hold your hand up to ask a question. In purely financial terms, the annual run rate is the extrapolation of financial results to future periods. The good news is, it should not include future non binding sales arrangements etc.

As you scroll the investor deck you may also notice a few other red flags – what they feel is their market cap and therefore why the shares could be seen as undervalued at this time. You may find others. For some, these flags are enough to dismiss DYME as an investment and for others these flags may seem inconsequential given the potential upside and for another group perhaps DYME has hit their watchlist radar. The importance is to critically read the information being presented because not many will spell it out as I did above when I intentionally stated that the revenue was an annual run rate.

SUBSEQUENT EVENTS

Since writing this, DYME appeared in the Financial Post in Canada and is a very useful DYME 101. I had also heard that DYME was on the Midas Letter on March 13th however I am unable to yet find a link to that broadcast.

Until next time, our industry leading team will keep connecting the dots that turn green into gold … so you don’t have to. Friends, invest long and prosper.

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