Post by
jermiah777 on Feb 21, 2021 1:17am
2.75 TARGET reached in 40 trading days!
Okay, obviously it is only an educated guess. But I want to present 5 reasons why I'm confident that the share price of Willow will have reached the 1 year target price of 2.75 in only 40 trading days.
My reasons center around the CEO's latest comments. I will quote him below and then explain.
"We're very pleased with the results of the Offering, the proceeds of which will allow the Company to accelerate capital spending towards execution of our commercialization plan for our existing portfolio cannabinoids and continue to explore opportunities for cannabinoids in development," said Trevor Peters , President and Chief Executive Officer of Willow." This financing saw significant interest from institutional money managers which is a key step in the evolution of the Company. Additionally, the strong cash position of Willow allows us as an organization to have significantly more negotiating leverage with potential business development opportunities. With commercialization of our first cannabinoid expected to occur in Q1 2021, marking the final step in our transition to becoming a revenue generating company, we are in a very strong position to generate value for Willow stakeholders."
Reason #1. Significant interest from INSTITUTIONAL MONEY MANGERS
All of us that invested in Willow in the last year and a half, may have saw our share price drop significantly after we bought in. I bought in at a dollar, only to see the share price go down to 30 cents. But this was a higher risk time. Investing at this time required that we invest knowing their is a chance we lose everything. Institutional money managers were not risking their money at this time. But once a company has developed to the point that Institutional money managers are confident to invest, you have arrived at the time that the company's future success has become obvious. The institutional money managers are basically the smart money investors, who know the correct time to get in. And they have gotten in at 1.65. The share price is only 8 cents above this. Yet these money managers have in effect , made this the floor right now. How many other money managers may yet take a position.? So, 28 MILLION DOLLARS bought in at 1.65. This is the floor now.
REASON #2 With commercialization of our first cannabinoid expected to occur in Q1 2021, Trevor Peters says this on Feb 19th. Think about this. Their is basically only 1 month left in the 1st quarter. And he goes on record to say that commercialization of our first cannabinoid is expected to occur in Q1? He doesn't even say at the END of Q 1. But he says "in Q1". Hello? Q1 is almost over.
Obviously, he already knows behind the scenes how close they are to generating revenue. Or to put it another way, if he said that by september is when they are expecting the commercialization of their first cannabinoid, then we could argue that likely he could be exagerating, or is overly optimistic. But he is saying in Q1. Or in otherwords, he might as well have said this: With commercialization of our first cannabinoid to occur in Q1, we are immently close to announcing the first commercial sales OF OUR PRODUCT and the official start of Willow becoming a REVENUE GENERATING COMPANY". Seriously,,,he might as well have said this. What do you think is going to happen to the share price when this is announced? And it could be monday morning... He did say Q1. And Q1 is basically 2/3 OVER....
Reason #3 "We're very pleased with the results of the Offering, the proceeds of which will allow the Company to accelerate capital spending towards execution of our commercialization plan for our existing portfolio cannabinoids and continue to explore opportunities for cannabinoids in development,
So the 3rd reason is that whatever time line you were thinking Willow needs to start generating large revenue....scrap it and throw it in the gargae. Why? Because 28 MILLION DOLLARS is about to greatly ACCELERATE THE EXECUTION OF THEIR COMMERCIALIZATION PLAN. Yes, this makes me very happy. Why? Because Willow is not the only company on the planet that can do what it does. But their are only a handful of other companies that can. But someone needs to quickly get out front....and get established...and get all their product refined...and fill supply channels with big pharmaceutical companies...and 28 MILLION dollars and a plan to greatly accelerate their plan is exactly what is needed to win. This alone must have disheartened the competition. Willow is going for the win...pulling no punches. I love it.
Reason # 4 we are in a very strong position to generate value for Willow stakeholders." Who do you think Trevor Peters was talking to when he made this quote only yesterday Feb 19th? Was he doing it for you and I? Tiny microscopic shareholders? haha...maybe a little bit. He was saying it for the large investors putting in 28 million at 1.65. He just told them....your 28 MILLION that you just invested at 1.65.....is going to now generate some serious VALUE for you.
so that means 1.65 is for sure the base now.
Reason # 5 After bringing in 28 Million at 1.65..the company compensates the underwriters by giving them a million warrants...but at what price? 2.15. Obviously, the underwriters agreed to the terms of the 6% and the 2.15 warrant price. They clearly believe 2.15 will be a deal very soon. The company also put an acceleration clause on that is triggerred at 3.05. That means that the underwriters cannot sit on their warrants for 2 years without putting in a penny to the company. No,,, but as soon as price gets to 3.05 with the 20 day weighted average at 3.05 , they will have to put in over 2 million more dollars to the company to exercise thier warrants. In other words, all the money that the company gave to the underwriters for their assistance in getting the offering filled so quickly, will all be returned to the company very soon.
So, I could go on...but clearly you can tell I am so optimistic about this company.
Does everyone remember that actually, two different analyst firms get a 1 year target price of 4.50 and 5.00 for willow before the big covid-19 virus hit, and the slowdown of the cannabinoid industry hit. I think these two analyst firms are going to be vindicated as their projections are going to come at least close to being the truth.