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CannaRoyalty Corp C.CRZ

Origin House is a growing cannabis product and brands company operating across key markets in the U.S. and Canada. The company delivers over 130 branded cannabis products to the licensed dispensaries. It provides distribution, manufacturing, cultivation and marketing services for its brand partners. The company operates through two operating segments, The Corporate segment derives income from non-operating investment and The California Operations segment engaged in cultivation, manufacturing, an


CSE:CRZ - Post by User

Comment by RockMaschineon Aug 22, 2018 8:57pm
102 Views
Post# 28503069

RE:RE:5 percent of sales in California are CRZ

RE:RE:5 percent of sales in California are CRZNew Forbes article on California taxes

Forbes- California collects quarter billion of tax

Do some new math here on an old post.

$290 million collected through 2018, not counting medical (which which have).
5% of that is 14.5 mil. 15% tax rate is now $90+ million!

A hundred million in 18 months could be out piece of the growing California pie. Imagine if the numbers pan out and 2020-2022 it is a 10 billion dollar market. I'll take five points on a billion to start and go from there.

New math puts this right in the range of $20 like many have been saying. I think that is on the low end for the next three years and would settle for nothing less.

RockMaschine wrote: I saw that one myself too. Something like expected tax revenue of $185 million. The article claims that only RVR/Alta were of that 5%. So it implies that the distribution arm of CRZ will remit 9.25 million in taxes. At the 15% rate it means sales of $61.6 million US! Not even accounting for every other revenue stream Cannaroyalty has.

Apply some very conservative price analysis with 60 million US (say 78 mil CDN at 1.3 CAD/USD). Times it by 30% margin and multiply by a PS ratio of only 30, and 50 million or so outstanding shares. I get a fair value of $13. Lets say $15 for good measure and then if you add FloraCal, BHANG, a MUV partnership announcement with Canadian LP (Aurora), testing facilities (supposed bottleneck to supply) etc. Wow.

Absolute monster in the making which should trade at $15-20 not even counting the fact that as per Kevin O'Leary the real big money is still on the sidelines. What happens when a billionaire takes a look at the CRZ balance sheet in April '19? Or when a major change to scheduling or banking is announced. Exciting times ahead.

And if you apply silly Canadian LP valuations then you have to compare to Aphria (2B) and Canopy (3.58B). Put CRZ at the 3 billion market cap range with this limited float? $60 a share!





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