Get Exposure To The Cannabis Industry Without All Of The Risk
Leasing Real Estate To Dispensaries
The very first year I began investing I had very little knowledge of what I was doing. All I knew was that the market tended to perform over the long-term and that was good enough for me. In my ignorance I began to dump money into industries that I was sure were going to explode over the coming decade. I put money down on clean energy, technology, and cannabis. The funny thing is, I was the most certain that the cannabis industry would surely take off into an economically powerfully segment of the market. There was one problem though… I didn’t know how to perform proper valuations. I was investing (gambling) on a pure “gut feeling”.
Had I been aware of how to properly valuation on a company, I would have seen that the companies in these ETFs were all overpriced. Most of them were bleeding money and few of them owned a significant amount of hard tangible assets. Fast forward to half a decade later and I’ve not not touched a cannabis stock since. Last week however, I came across a stock that may make me reconsider.
Here’s some key stats.
The company has a market cap of $4.4 million.
The company has an enterprise value of $12.6 million.
This company has a NAV of $5.4 million.
This company has a 5.7% cap rate (TTM).
They have recently made a large turn around in their business with net cash provided by operating activities coming in at $455K by Q3 of 2024 vs $28K by Q3 of 2023.
It’s currently looking like this company may finally generate a net income with their net income figure sitting at $123K for their first three quarters of 2024.
This company has seen its share price increase 165% over the past five years but is currently experiencing a one year share price decrease of 33.5%.
This company has 12.2 million shares currently outstanding.
The company has $2.0 million in convertible notes payable that it issued to fund operations. The conversion price for these notes is $5.00 a share however and the company’s share price is currently sitting at only $0.36 per share.
There are 2 million shares of preferred stock that the company has outstanding. These preferred shared are owned by Greg Johnston and Alex McLaren. These share’s can’t be converted into common stock they come with a 50-1 voting right over the company’s common stock.
Due to this 50-1 voting superiority over the company’s common stock Greg Johnston and Alex McLaren have the ability to control the outcome of all matters submitted to a vote of stockholders effectively giving them full control over the business.