.....from Investing Whisperer....late April/22
I'M INVESTING IN THIS
BIG GROWTH STORY...
..AT JUST 8 CENTS PER SHARE!
| This is what GROWTH looks like: | |
Patient visits are climbing steadily every month across Revitalist’s (CALM-CSE) TEN ketamine clinics in the USA. They are increasing their business over 10% per month right now.
This is where The Big Money is made—at the start of A Big Trend.
The Company has made a conscious decision to not expand further until they have positive cash flow—which happens at about an $8 million annual run rate. They’re now at $2.5 million and growing at 10% per month.
With the latest financing (and I’m buying $100,000 of this), the stock has 67.7 million shares out, a market cap of $8 million and an Enterprise Value of just $5.4 million.
Folks, the stock trades for just EIGHT CENTS a share. I haven’t been this excited about one of my stocks since I bought Voxtur (VXTR-TSXv) at 15 cents almost two years ago (which ran to $1.45 in months!)
Revitalist is now one of the best growth stories on the board right now, with several macro tailwinds (more like hurricanes) and company specific trends moving them forward.
COVID has elevated one tailwind forever—mental health is now a mainstream, accepted illness. After billions of people around the world were forced to stay in tight quarters for weeks to months, the stigma around mental health issues is now gone.
That means millions of people are now actively seeking out treatment for the first time--or are willing to try new treatment methods. No wonder Revitalist has such a big growth curve!
This is happening just as psychedelics—and ketamine is the oldest and most well known psychedelic in the western world—are also becoming mainstream.
The main reason for this growth however: ketamine works incredibly well (85% vs 22% with traditional treatments) to treat a wide range of mental and health issues—and it works especially well the way Revitalist works with their patients.
“We are consistently two to three steps past where the competitive pack is,” says Revitalist Regional Director Matt Dolan, who has been a CRNA—a Certified Registered Nurse Anesthetist—for 23 years.
CRNA’s run ALL of Revitalist’s clinics. They have been using ketamine since the 1960s--no other group of medical professionals have anywhere near this level of expertise.
Like many medical professionals, Dolan was feeling burnout after two decades and was leaving the business—until he heard about Revitalist. He heard what CEO Kathryn Walker was building with CRNAs as the lead practitioner, and came to visit.
“I was so blown away by, just the setup of the company and the energy and the vision and how profoundly well the patients did just in the week that I was there, that I went home, withdrew from law school and joined the company.”
“The way that we provide that psychotherapy during the infusion and take advantage of the dissociation that happens during those infusions, is profoundly effective,” he says.
It’s important to dig deep into these junior investments. So in my last chat with management, I asked to speak with a new hire, Dr. Denise Hopkins-Chadwick, PhD, RN. She’s a retired U.S. Army Colonel who is responsible for research and education.
At first glance, that was an odd title to me. But she actually holds one of the keys to success here.
She was research admin in Baghdad, overseeing trauma research, during the Iraq War. Her ability, reputation and accomplishments have allowed her to receive over US$50 million in grants over her career.
She started here as a consultant and then came in full time, after—much like Matt Dolan—seeing how incredibly effective Revitalist’s procedures and outcomes were for patients.
The increase in ketamine research is staggering now. There is an incredible need by the multi-billion dollar health care industry for research facilities who can meet the strict protocols—in safety and quality—for real time patient data in ketamine treatments.
Revitalist already has federal government approval to conduct their own research or allow their clinics to be used for research by others. This is HUGE credibility for Revitalist, and will increase their stature in the eyes of current and potential patients.
Dr. Hopkins-Chadwick’ says they are negotiating for several research programs to be done at their clinics.
“Within the first 90 days, we're already in the final conversations of at least two studies that are already IRB (Institutional Review Board) approved, already FDA approved--all those hurdles have been crossed over and they are looking for a place that has the ethics and the safety and the psychedelic space that they feel comfortable with doing that research there.
“I've worked in this world for 35 going on 40 years now, and things don't happen that fast.”
To me, all this means the stage is set for continued growth, maybe even faster growth. Their therapy model works incredibly well—where a therapist is able to work with the patient while they are carefully given ketamine by a licensed CRNA, in a calm setting like a Revitalist clinic.
Revitalist’s methods are attracting a very talented management team. This latest financing gives them just over a year’s working capital.
Not only am I investing $100,000, management is stepping up—CEO Kathryn Walker is putting $300,000 hard dollars in, and is taking stock for all her equity here, including the flagship clinic--a total of $2.3 million in equity. She is all-in, and fully aligned with shareholders.
Like I say, I haven’t been this excited since I bought Voxtur two years ago. With the warrants, that was a 10-15 bagger for me. I made over $1 million. This company has a simple business plan, a powerful team, and a much tighter share structure than Voxtur did.