Hiku Brands Company Ltd. DJACF

Beleave & THC Valuations Implications for DOJA Share Price

[Cannibiz]

Lets look a valuation of peers and estimate where DOJA will trade once public and licensed.

Lets start with arguably the worst licensed producer of all publicly listed licensed producers. THC Biomed (CSE:THC), it currently has a market cap of $60 million, has no cash on its balance sheet and has a tiny facility that is capable of producing any meaningful dried flower.

What about newly licensed Beleave (CSE:BE), it recieved its license to produce from health Canada on May 19th and has a market cap of approximately $60 million as well and has no cash on its balance sheet. Recently signed an awful deal with Cannabis Wheaton that has put a cap on its stock price.

Harvest One (TSX-V:HVST), recieved its license to produce last summer, located out on Vancouver Island and recently also signed an awful deal with Cannabis Wheaton that the market is hating. That said, Harvest one is also trading at a market cap of roughly $60 million.

Those are the only 3 pure play publicly traded licensed producers without sales licenses for dried flower. The average valuation is pretty consitent at $60 million.

What does that imply for DOJA share price once licensed (DOJA had its helath canada inspection on May 2nd).....

According to DOJA's presentation, after the RTO, shell roll back and $3mm financing, the company will have 58.6 million shares outstanding.

Average public LP (no license to sell) Valuation is $60 million divided by DOJA's 58.6 shares = $1.02 per share...we can all argue if it should be lower or higher than the average but the market is pretty clear. 

If I had to bet I believe DOJA will open north of $0.85 per share and if the team executes on the sales license quickly every shareholder of SG currently will be in the green if they are patient.

[jmo983]

Wrong numbers...... 80000000 shares outstanding then 60000000 cap gives...... . 75 price AND look at SG shares are .333 of doja share so today price can fall from $057 down to....... .75 / 3. You are looking at a drop to. 25 for sg people. Not great when using correct numbers

[Cannibiz]

You are wrong partner...try using the real numbers the company posts on their website check out slide 14 of their presentation on DOJA's website. https://static1.squarespace.com/static/589e014ab3db2b2aa26e9afb/t/591b0129197aead051a2da2d/1494941998216/DOJA_Presentation_May_2017.pdf www.dojamj.com

[jmo983]

Fullydiluted is 80000000 shares........ it's right there inblack and white......... all the fast money just moved in to HIP so thi s one gonna flop hard.... more canaduh money will be lit and burnt......... sector flooded more by the day.... inspection failed? Contingent dealings are a house of cards

[bullmarkets]

newstrike financied at around 40 million.. this will trade in that range..  so in the range of 50-60 cents.

[equityanalyst1]

dont forget WMD ....under 60 million market cap and have been producing for over a year.....room to expand, 300 kg ready for sale, and already granted sales license...... i beleave the best play in under 60 million companies

[trader129]

Values are all going to come down.