Nova Cannabis Inc Com YSSCF

>90% upside in SP

[JustBTFD]

The way I am looking at the stock (comfortably $0.55/share, upside to $1.60/share):

- I am running my model on run rate 2019 numbers assuming they have 12 stores operational by year-end. These are management projections. 
- I model the Red Deer location based on current projections of $4.5 million in revenue per annum and a 26% margin
- The two operational Sweet Tree locations at $860k in store level cash flow per annum
- The remaining 9 locations at $3 million in sales per store per annum at 25% margin (margins are likely closer to 30-35% when looking at comparables). I beleive these numbers are conservative as stores haven't even had inventory to sell and their future locations are not in saturated markets (High River, Llyodminster, Vegreville)
- I assume full exercise of all additional shares including the full sliding scale contigent of 53.8 million shares (as I don't have details on the scale, I have left revenue at run rate level for the two Sweet Tree stores - very conservative as the shares wouldn't be issued if that was the case) 
- Does not include any upside for additional stores aside from the 12 that are either operational or awaiting licenses. They have 15 other locations, 6 of which will be finished constructed in the next 3 months. Again, I haven't included ANY value for these locations
- I have cash balance of $13.4 million (assuming NBF exercises their warrants)
- Annual G&A burn of $3.2 million
- I assume a 10x CF multiple - most peers would be double or triple that
- This puts me at $0.53 per share at my conservative case
- My bull case which includes slghtly higher margins, reduced cash balance and 15 additional stores in operation puts the stock over $1.60 per share
- Imagine what it would trade at if it was priced at traditional marijuana multiples...