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Entourage Health Corp V.ENTG

Alternate Symbol(s):  ETRGF

Entourage Health Corp. is a Canada-based license holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a 26,000 square feet indoor facility in Aylmer, Ontario (the Aylmer Facility), specializing in product development and fulfillment for both adult-use and medical cannabis. The Company is focused on building a portfolio of brands in the Canadian market, including its brand Color Cannabis, mainstream brand Saturday Cannabis, medical cannabis product brand Starseed Medicinal and its craft cannabis brand Syndicate Cannabis. The Company produces a diverse portfolio of cannabis and cannabis derivative products, including oils, capsules, soft chews, topicals, beverages and vapes, for sale in both the medical and adult-use markets across Canada. Its elite adult-use product portfolio also includes Dime Bag a pre-roll offering, sold across eight provincial distribution agencies.


TSXV:ENTG - Post by User

Bullboard Posts
Comment by ROIcrusaderon Jan 30, 2019 8:17am
181 Views
Post# 29294730

RE:Explosive Growth and Profits in 2019.

RE:Explosive Growth and Profits in 2019.Let's work through this, our path will differ, but I think we'll end up near the same place, or at least close. The best way to value this co is by using potential PE for 2020, which would assume capacity of 50,000kg/yr based on the 554,000 sq ft coming online end Q1. 50,000 x $4/g=$200,000,000 revs/yr Let's say, 25% EBITDA so $50,000,000. That's a great number right?! The beauty of WMD is the share count, and correct me if I'm wrong if there is convertible debt out there or warrants/options I'm unaware of, but with 130,000,000 ish shares outstanding (fully diluted). Divide 50m/130m and you get 0.38 per share. A healthy mulitiple is 10x earnings, so 0.38 x 10 and you get $3.80 in 2020. The more I read about this company, the more I like their operations and strategy. Distribution pipelines into both rec and medical, ZERO debt, cash on hand, and potential of 41m from options and warrants. This does not include any consideration for vape, edibles or oils, which could in the longer term be quite significant. Full discloser am a shareholder, I mostly write these things for myself, to work things through. At this point, if I see weakness today I'm going to add 2x my original. See, you say $5.62ish, I'm around $3.80 ish if either of us are even close to correct people here will be quite happy. Lots of blue sky here. PS, if you've read this far, you deserve to see the upside in terms of sales and multiples. Let's say they really push things and say they get $5/g not $4 as per the above, and besides the 50kg of production they add another 100m sales for approx 350m total at 25% or 87.5m/130m shares = 0.67 eps. Let's say the market gets hungry and we get a growth multiple of 20x bcs now we can prove earnings growth= $13.40 ... phew.
Bullboard Posts