GREY:ISOLF - Post by User
Post by
InvestorOon Oct 23, 2016 7:49pm
129 Views
Post# 25376392
We are raising our fair value estimate from $0.45 .....
We are raising our fair value estimate from $0.45 .....Laguna Blends Inc.
Market Data (as of September 5, 2016)
Current Price C$0.22
Fair Value C$0.80
Rating* BUY
Risk* 4 (Speculative)
52 Week Range N/A
Shares O/S 28.28 mm
Market Cap C$6.22 mm
Current Yield N/A
P/E (forward) N/A
P/B N/A
YoY Return N/A
YoY TSXV 47.7%
*See back of report for rating and risk definitions
Highlights
Laguna Blends Inc.’s (“company”, “Laguna”) share price is up by 83%
since we initiated coverage on May 5, 2016. Its market capitalization
is up by 155% to $6.22 million.
In August 2016, the company entered into an exclusive licensing
agreement (for an initial term of 2 years) with a privately held U.S.
based company to distribute their seven skin care products. Laguna
paid a licensing fee of US$0.10 million, and is required to place a
minimum order of US$1.5 million for the products during the two-year
term.
Management expects to commence sales of these products this month.
The company had launched two functional beverage products prior to
venturing into the skin care industry. The first one is a hemp protein
coffee called Caff, and the second one is a hemp protein functional
beverage called Pro369.
The company launched sales on March 7, 2016, with 135 direct
independent sellers (affiliates) in the US and Canada. According to
management, the count is currently at 300 active affiliates with over
1,200 registered. Management expects a significant increase in affiliate
growth and sales with the introduction of the new skin care product
line.
Reported revenues for the first time in Q4-2015 (quarter ended March
31, 2016) of approximately $17k, which increased to $47k by Q1-2016
(quarter ended June 30, 2016).
Subsequent to the quarter-end, the company raised approximately $0.7
million through two private placements.
We are raising our fair value estimate from $0.45 to $0.80 per share.
Siddharth Rajeev, B.Tech, MBA, CFA
Analyst
September 8, 2016
Fundamental Research Corp.
© 2016 All Rights Reserved.