Abaxx Technologies Inc N.ABXX

RE:Has the train left the station? I think yes.

[jduade]

In my opinion the train is about to leave the station (again).

In October, 2020 I wrote a blog post on Stockhouse, see below, where I indicated that the train was about to leave the station on NML/Abaxx. At the time the stock price was around the equivalent of $0.10, and now is at a price of approximately $0.32.

https://stockhouse.com/companies/bullboard?symbol=n.abxx&postid=31734793

I think Abaxx is about to leave the station again, so if you're a retail shareholder now is likely the best time to jump on. Here's why...

1) The bought deal price of $3.80 ($3.65 share price + $0.15 Warrant) closes on Thursday, 4/29. If you want to participate in that you need to be an accredited investor and have your money to the investment banks running the deal by 4/27. This means that investors in Abaxx who currently own shares would need to sell their shares no later than today in order to participate in the bought deal. Effectively an arbitrage play.
2) Once the bought deal is closed I would expect the IBs to publish positive research reports on Abaxx indicating the significant potential for the company.
3) The bought deal basically de-risks the major revenue generator for Abaxx (i.e., the Abaxx Exchange) in that the funds can be used for their Clearinghouse. Once Abaxx has the clearinghouse in place, Abaxx should obtain regulatory approval in May, and be able to open their LNG exchange in July. I believe the market will love this, and start to value Abaxx at a multiple of sales/revenue once the exchange is up and running.
4) The IBs know point 3, and will likely indicate a price per share in excess of $15 as a recommendation. Abaxx in their recent presentations mentioned that the TAM for LNG was $500M USD, and my guess is that they can capture potentially half of that. CME and ICE both have a price to sales in excess of 10, so if Abaxx could get that we are looking at a $2-$3 Billion market cap! That would be $25-$38 per share.
5) Based on the above, and given the fact that the stock was trading close to the deal price of $3.65 CAD I personally bought 8,000 shares this AM bringing my total to 91,000 shares.

What do others think?