Starbucks of Marijuana This is what this thread is about.
SCU - Second Cup.
currently sitting at a valuation of 44m$ with 15m$ in capital in the bank.
Company currently have over 280 franchises in Canada, 12 locations owned.
New management turned the company around +384% EBITDA last year, from sinking company to profitable one.
20 m shares fully diluted
Currently has 19 applications (May) in Alberta in joint venture with $NAC for SC Stores (Second Cup Stores) where those will dispense marijuana and possibly if laws permit create a Marijuana Lounge. (Amsterdam style of coffee shop)
Last private placement few weeks ago 3.45$ zero warrants.
Serruya Brothers behind it (APH, SCYB, LHS)
NAC behind (Chuck Rifici)
Tilray behind for product supply
CRZ behind for diversification of product brands (when / if regulations allows for certain edibles.)
Business model of Second Cup. in relation to dispensaries is allowing each of their franchise owners to transform their Second Cup into a retail front store dispensing recreational marijuana in allowed provinces.
The current focus is towards Alberta, however plans are for everywhere allowed. (Saskat, Alberta, BC, Eastern provinces)
Now one of the major update since yesterday is the Conservative taking power in Ontario with the promise of privatizing the Retail Rec marijuana in Ontario.
This is a huge game changer for Second Cup. as they are extremely present in the Ontario province and this is where most of the canadian sales come from.
Second Cup already has a built brand in canadian's mind, they currently sitting on the TSX big board.
They are worldwide renowned due to having Second Cup chain in more than 6 different countries.
Second Cup represent a cash-flow positive company with a fresh new management with huge track record, achieving outstanding restructuring slashing cost, optimizing margins, reducing certain non-profitable franchises. Jumping in the marijuana game.
If the new management achieved a +384% ebitda last year on a failing sinking coffee chain.... think about what they will do with marijuana chain.
They have the retail experience, they have the brand, they have the float, they have the low valuation.
Fortune favors the Bold!
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Almost forgot boys and girls! a few comparables on the retail side of marijuana
Fire and Flower - 60m$ valuation (EMC,MMJ(Phytotech australia), TER) all 3 invested.
WestLeaf- 23m$ valuation co
HIKU- over 100m
CHOO- over 85m$
Id say SCU at 45m$ valuation with 15m$ in the bank, is a no-brainer!
Disclaimer: i have been accumulating shares because that is a low-float no-brainer TFSA candidate