Emerging Markets
Darkpulse (OTC: DPLS) Honcut Bridge BOTDA Fiber Optic Cable Install / DPLS Smart Wall Cables at US Boarders & Charging Lanes with Electric Vehicle (EV) Integrated Charging Capabilities – A Waiting Bull
Published
3 years agoon
By
Boe RimesDarkpulse (OTC: DPLS) is probably the biggest sleeper on the OTC with a truly game changing technology that could revolutionize any number of industries with multi-billion dollar implications. An SEC filer that recently submitted its application to the OTCMarkets Venture Market as part of its plan to trade on larger markets such as NASDAQ. Like many of the biggest winners we have covered on this website, DPLS is one stock retail investors and many of the smartest and biggest players in small caps are not selling, with every 10th of a penny DPLS drops they accumulate more, and this is indicative of many of the biggest historic runners we have covered on this website. The implications of integrating Darkpulse world-class and market leading BOTDA dark-pulse sensor technology into the Honcut Bridge in Loma Rica California, or into high rise projects throughout Egypt, a leading technology focused country that opens the gates to Africa & the Middle East, Darkpulse fiber-optic ‘smart wall’ cables could be used to monitor and secure remote and unprotected US borders in states like Arizona, New Mexico and Texas. DarkPulse’s market leading technology can build up an x-ray picture of the entire area. The Company made a smart move into the Drone business and, while their fiber-optic cables can detect intruders approaching on foot or in underground tunnels, a signal can automatically launch a drone with facial recognition to catch coyotes and drug-runners. Darkpulse has employed the Bachner Group recently pitching its sophisticated fiber-optic ‘smart wall’ cables to Department of Homeland Security officials.
DPLS is a leader in distributed fiber sensor solutions whose proprietary patented system outperforms all other distributed fiber sensors currently on the market. By contrast to existing technologies, the DarkPulse Technology is a distributed-fiber sensing system, based on dark-pulse Brillouin scattering, which reports in real-time on conditions such as temperature, stress, strain corrosion and structural health monitoring of Critical Infrastructure/Key Resources including Bridges, Buildings, Roadways pipelines and mining installations. The Company boasts a growing list of world-class capabilities and is positioning itself as the leader in infrastructure sensing and monitoring in all domains, air, land, and sea which represents an enormous market worth billions putting Darkpulse in line for serious government contracts. DarkPulse, Inc. uses advanced laser-based monitoring systems to provide rapid and accurate monitoring of temperatures, strains, and stresses. The Company’s technology excels when applied to live, dynamic critical infrastructure and structural monitoring, including pipeline monitoring, perimeter and structural surveillance, aircraft structural components and mining safety. Darkpulse fiber-based monitoring systems can assist markets that are not currently served, and its unique technology covers extended areas and any event that is translated into the detection of a change in strain or temperature.
Darkpulse (OTC: DPLS) a critical infrastructure solutions technology Company – AS SMART CITIES BECOME A REALITY, DARKPULSE IS THE FOUNDATIONAL TECHNOLOGY TO EMPOWER GLOBAL SYSTEM DYNAMICS out of New York City that we have been reporting on since January 2001 with a 20,000 sq ft facility in Tempe, Arizona, ISO9001 and AS9100 certified electronics and electro-mechanical assembly operation. Currently the Companys BOTDA dark-pulse sensor technology is being integrated into the Honcut Bridge being built in Loma Rica, near Sacramento, California, in a partnership with the California Department of Transportation (“CALTRANS”). When finished, the bridge will be wired up with cables mapping ‘almost every square inch’ of the structure, allowing engineers to monitor it for safety – and even detect the weight and speed of vehicles driving over it. The Company’s CEO Dennis O’Leary said: “You can put on a VR headset, and virtually walk the structure. You’re able to look down into the bridge and see what’s going on inside, almost like an x-ray. You can zoom in, zoom out, you can flip this thing 360 degrees.
https://www.youtube.com/watch?v=bUzHuVCVIyM
Up next for Darkpulse is the JV Agreement with Cairo based Egyptian Electrical & Mechanical Works Co. that calls for the creation of a jointly owned Egyptian corporation with revenue split between the two partner organizations as well as an exclusive right for DarkPulse’s BOTDA systems to be utilized in real estate and other projects throughout Egypt. Together, both companies believe a new generation of fiber sensors will change the design, concept and implementation methods of future cities and this joint venture represents the first step towards opening the gates to Africa & the Middle East, since Egypt is the leading technology focused country in the region.
Why we’re unlike any other sensor system in the world $DPLS #smartcities #infrastructure #botda #bridges #Infrastructurebill @SecretaryPete @ntsb @WorldofConcrete #gui @OculusBusiness pic.twitter.com/DNWb7lBRQs
— Dennis M O'Leary (@DennisMOLeary) March 7, 2022
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Darkpulse recently pitched its sophisticated fiber-optic ‘smart wall’ cables to Department of Homeland Security officials. Darkpulse technology can create an x-ray-style picture of an area just by burying a small and near-undetectable cable in the ground. The BOTDA Fiber Optic Cable would allow Border Patrol officers to scan miles of the US southern border in real time using VR-headsets. DPLS CEO Dennis O’Leary stated: “We would actually see the footfall of somebody crossing. We could take that bearing and track that person, and then communicate with the security group on the ground and let them know exactly where that intruder is headed. Drones can be placed along a perimeter of the border in a garage. As soon as there’s an alert, we can launch a drone with facial recognition and follow. ‘We have drones that are pilot-driven. The capability of the drone could be a set pattern. Or it could be an autonomous type of deployment – without giving too much away.
CEO Dennis O’Leary also stated: ‘We are in talks with several agencies. One is Homeland Security. But there’s other agencies that are interested in the tech for monitoring different areas as well.’
Recently Darkpulse secured the major sponsorship position for the sixth annual “Smart Cities Connect” conference that will be held in Washington, D.C. September 26 through September 29, 2022. At least 500 city government representatives and over 1,000 attendees are expected at the conference, which focuses on the development of Smart Cities through Digital Transformation on Architecture and Urbanization.
DarkPulse Chief Executive Officer, Dennis O’Leary, will deliver the keynote address to speak about the launch of the world’s first intelligent piece of infrastructure, the Honcut Bridge in Marysville, California, brought to life by DarkPulse technology. Mr. O’Leary will also speak about DarkPulse’s newest initiative to build Charging Lanes™, which are Smart Roads™ with Electric Vehicle (EV) integrated charging capabilities.
Dennis O’Leary stated: “DarkPulse is more than critical infrastructure / key resources monitoring. Our patented high-resolution sensors perform real-time structural health monitoring of infrastructure creating the foundational technology necessary for building and interconnecting smart cities around the world. Our innovative products and services are the forefront of smart technology. Utilizing the power of Global System Dynamics, DarkPulse provides a user interface that is VR-capable, displayed in 3D, and can be used anywhere on any device. It harnesses the power of machine learning to transform the digitalization of cities from challenges to opportunities. Digitalization is the critical step towards future cities and the team at DarkPulse is leading the way to create a better world.”
Richard Erb, Executive Director of Smart Cities Connect made a great point. He said: “DarkPulse’s intelligent infrastructure solutions are a great fit for the SCC Community and the S&L government representatives we serve. The new Infrastructure Law is providing a transformational level of funding for our nations critical infrastructure needs and public safety. SCC is honored that DarkPulse has opted to partner with TechConnect to share their experience and solutions with city leaders across North America.”
$DPLS Our current contracts information is available to read at https://t.co/MlAbqvzwyQ this does not include the December £34M win as the end user would not agree to a PR. Our certifications are also listed on the website as well as each subsidiary at https://t.co/9BItcrdaSo
— DarkPulse (@DarkPulseTech) April 27, 2022
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We have covered a number of penny stocks that really had something great but languished in penny land with a large group of long-suffering longs that one day skyrocketed and made everyone rich. One that we covered on Microcapdaily was NWBO which had sunk to the low $0.20’s in early 2020 and then well below $0.20 in the mid-teens for a few months leading into summer where we reported on it again trying to give hope to the poor longs who all had averages well above the asking price and kept averaging down, before skyrocketing northbound over 1200% and topping out at $2.50 per share in September of that year. And there are many others, some that moved much bigger than NWBO, one of the first stocks covered on this website was AVXL at under a dime on the OTC before moving to the NASDAQ and skyrocketing to over $30 per share. Sometimes it’s just a matter of working through some previous convertible notes, or other large blocks of stock, and the promoter or seller just wants their money right now, they don’t care about the long-term prospects of the Company. And many times, management will keep things quite until the promoter sells all his shares and then bring out the big guns. And when that happens, and there are no more shares coming, and you have an amazing Company, and then the market makers and other naked shorts have to cover, then…the sky is the limit. Microcapdaily reported on DPLS when the stock was less than $0.01 quoting the Company’s CEO Dennis O’Leary, at the time: “Since early 2020 we have made significant progress with the commercialization of our patents as well as building a global presence that will be part of the company’s accelerated entry into global infrastructure markets.” An SEC filer, Darkpulse recently submitted its application to the OTCMarkets Venture Market as part of its plan to trade on larger markets such as NASDAQ. We have previously covered the Companys first quarter revenues of $7.8 million and the type of meteoric growth expected here considering even some of the Optilan contacts including a $42.5 million US contract (34 million British pounds) that the end user would not agree to do a PR on. Recently DPLS acquired Optilan which has secured leases for two new facilities located in Warwickshire in the U.K. DPLS plans to take Optilan public on the New York Stock Exchange (“NYSE”) sometime in 2022 via an initial public offering (IPO). with DPLS management retaining 80% ownership in Optilan. While it’s easy to get excited about the possibilities here that doesn’t change the fact that DPLS is a $0.04 penny stock and of course there are risks. And while many $0.04 penny stocks just come and go there are some that do go on to be great Company’s, True Religion Jeans was one and we have covered many on the website, including HRBR more recently. We will be updating on DPLS when more details emerge so make sure you are subscribed to Microcapdaily so you know get our updates.
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Disclosure: we hold no position in DPLS either long or short and we have not been compensated for this article.
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Emerging Markets
Bitfarms (NASDAQ: BITF) in Focus: Exploring the Meteoric 110% Surge and Macro Influences
Published
1 year agoon
December 7, 2023Bitfarms Ltd. (NASDAQ: BITF) rides the wave of explosive growth surging by over 110% from its lows of $1.03 per share in November. This BTC miner has witnessed a 41% increase since last Friday, December 1st, 2023. If you’ve been keeping up with our recent articles, you’ll notice that majority of coverage lacks substantial press releases or filings supporting a surge in valuation. Today’s coverage includes precisely that and more. Let’s delve deeper into BITF to assess if this crypto miner is worth considering amidst the ongoing rise in spot BTC.
Background:
Established in 2017, BITF has established itself as a global leader in Bitcoin (BTC) mining. Utilizing its computational power, the company contributes to various mining pools, earning payment in Bitcoin.
BITF sets itself apart by developing, owning, and operating vertically integrated mining farms. These facilities feature in-house management, company-owned electrical engineering services, installation support, and multiple on-site technical repair centers, ensuring a comprehensive operational setup. Bitfarms relies on its proprietary data analytics system, ensuring superior operational performance and uninterrupted service.
Currently managing 11 farms across four countries—Canada, the United States, Paraguay, and Argentina—Bitfarms predominantly uses environmentally friendly hydro-electric power and maintains long-term power contracts. The company remains dedicated to employing sustainable energy sources, often utilizing locally available and under-utilized energy infrastructure.
In its recent upgrade initiative, BITF has improved its fleet’s efficiency and capital practices ahead of the Halving. This strategic move aims to boost its capital-efficient fleet to 12.0 EH/s by Q2 2024. The focus lies in reducing miner and energy costs, enhancing fleet energy efficiency, and fostering greater pricing flexibility for sustained growth and success.
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Market Update:
At the core of BITF’s latest momentum and strength lies its connection to macro-scale factors. To provide deeper insights into BITF’s future prospects, we’ve conducted a comprehensive market analysis.
The latest market surge propelled spot BTC above the USD $44,000 mark at its peak, reaching its highest value in more than 19 months. This remarkable rally emphasizes the enduring positivity shared among retail and institutional traders alike.
Blackrock ETF:
The primary driving force behind Bitcoin’s ascent appears to be rooted in market expectations of an approved spot BTC exchange-traded fund (ETF) in January 2024. This anticipation has spurred substantial cash inflows from institutional investors, contributing significantly to Bitcoin’s current trajectory.
If the approval unfolds as anticipated, it has the potential to bring a substantial wave of fresh capital into Bitcoin. According to certain projections, this approval might introduce up to $50 billion in new liquidity to Bitcoin. The precise impact on Bitcoin’s price remains uncertain; however, a particular model suggests a 4% price surge for every $1 billion that enters Bitcoin. Consequently, if the projected $50 billion materializes, Bitcoin could potentially double or even triple in value.
Rumours from Qatar:
As per bitcoin enthusiast Max Keiser, Qatar’s sovereign wealth fund (QSWF) (mainly tasked with managing the nation’s extensive oil and gas-derived wealth), is contemplating a significant investment spree of up to $500 billion in the flagship cryptocurrency, Bitcoin.
To offer a comparison, this proposed investment dwarfs the disclosed Bitcoin holdings of MicroStrategy, founded by Michael Saylor, by an astonishing 671 times. Presently, MicroStrategy stands as the largest corporate holder of Bitcoin, possessing 174,530 BTC following its acquisition in November.
Keiser is notably optimistic that QSWF’s monumental investment could propel the price of bitcoin to reach soaring highs of $100,000.
Binance Update:
In the aftermath of former Binance CEO Changpeng Zhao’s guilty plea and the subsequent $4.3 billion settlement with the U.S. Department of Justice (DOJ) on Nov. 21, Bitcoin’s price initially showed mixed signals. Contrary to expectations, Binance did not experience a mass exodus of funds similar to what FTX faced during its public liquidity crisis. Notably, prominent figures in the crypto space, such as Galaxy Digital CEO Mike Novogratz, perceive the settlement as a positive development overall.
At first, Binance’s Bitcoin reserves dropped by 17% from their peak. Following the initial outflows, the balance has shown an increase of nearly 1%. As for FTX, their BTC reserves fell a staggering 99.9% from all-time highs in November 2022 ,with no recovery in sight.
This serves as a significant testament to Bitcoin’s resilience at present, even as the largest cryptocurrency exchange by volume faces a monumental lawsuit. Unlike the substantial impact experienced by FTX, this legal challenge did not severely affect BTC reserves.
So What?:
With multiple factors driving spot BTC, smaller-scale BTC miners are becoming increasingly attractive -especially considering the potential financial growth and rising profit margins. Let’s delve into the recent developments concerning BITF for a closer look.
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What Happened:
On December 1st, 2023, BITF released a comprehensive performance and financial update, revealing robust figures for their BTC mining operations. Based on this report alone, it’s evident that BITF boasts a substantial global operational capacity and possesses the financial support needed to remain competitive, particularly as BTC mining grows more challenging post-halving. To enhance clarity, we’ve restructured the release into bullet points for easier comprehension.
BTC Production: November production recorded 392 BTC, a 1.5% decline from October. The network difficulty surged by 19.0% in November, indicating strong miner demand leading into the 2024 Halving.
Network Metrics: For the eleven months ended November 30th, network difficulty increased by 92.2%, while BTC’s price rose approximately 128.4%. This resulted in a 33.9% improvement in production economics measured by USD/TH/day.
Operating Highlights:
- 6.4 EH/s was online by November 30, 2023, marking a 45% increase from November 30, 2022.
- 66.4 BTC/average EH/s was recorded, down 1.9% from October 2023.
- 13.1 BTC earned daily on average in November, equivalent to about $495,200 per day based on a BTC price of $37,800 on November 30, 2023.
Expansion Initiatives:
- Firm purchase order placed for 35,888 Bitmain T21 miners, with an option for an additional 28,000 T21 miners.
- Finalizing contracts to expand operating capacity from 30 MW to 50 MW at Paso Pe, adding 20 MW of hydro-miner containers.
Financial Update:
- Raised $44 million in gross proceeds through a private placement of common stock and warrants.
- Sold 350 BTC, generating $12.8 million in total proceeds.
- Added 42 BTC to treasury, holding a total of 802 BTC, valued at approximately $30.3 million based on a BTC price of $37,800 at November 30, 2023.
- Held Synthetic HODL™ of 35 long-dated BTC call options as of November 30, 2023.
- Reduced outstanding indebtedness by $1.9 million, leaving a remaining balance of $6.0 million at November 30, 2023.
Technical Analysis:
We’re noticing a trend among retail traders on social platforms like X, discussing technical trading patterns related to crypto miners, specifically highlighting positive momentum linked to an Inverse Head and Shoulders (IHS) pattern. A user, @FreeDoomCapital, suggests that among all miners, BITF seems to exhibit the clearest pattern. Here’s a brief explanation of the pattern to enhance your comprehension.
The Inverse Head and Shoulders (IHS) pattern is a technical analysis formation commonly observed in financial markets, particularly in stocks, currencies, and cryptocurrencies. It’s considered a bullish reversal pattern and typically appears after a downtrend.
Here’s a further breakdown on the pattern:
- Formation: The pattern consists of three successive troughs. The middle trough (the “head”) is the lowest point, while the two surrounding troughs (the “shoulders”) are higher than the head and relatively symmetrical in height.
- Shoulders: The left and right shoulders are formed at the end of a downtrend. They show a decline in price followed by a temporary stabilization or slight increase before declining again.
- Head: The head is formed after the left shoulder, indicating a further decrease in price, often reaching a new low. However, the head is typically higher than the previous trough, indicating a potential shift in the downward momentum.
- Neckline: The neckline is a trendline connecting the highs of the two shoulders. It acts as a critical level; a breakout above this line is a significant signal for a potential trend reversal.
- Volume: Volume analysis can complement the pattern. Generally, during the formation of the left shoulder, the volume decreases, increases during the head formation, and decreases again during the right shoulder formation. A breakout with higher volume after the formation is considered a stronger confirmation of the pattern.
- Confirmation: A confirmed Inverse Head and Shoulders pattern occurs when the price breaks above the neckline. Traders often look for a sustained move above the neckline to confirm the reversal.
The Inverse Head and Shoulders pattern is considered complete when the price breaks above the neckline, indicating a shift from a downtrend to a potential uptrend. Traders and analysts use this pattern as a signal to anticipate higher prices, and they often set price targets based on the distance between the neckline and the head.
Similar to all technical trading patterns, it’s important to recognize that it’s not foolproof and may not be accurate in every instance. However, it’s noteworthy that several sources are paying attention, particularly due to the apparent clarity of BITF’s formation of an IHS pattern in their lineup.
Conclusion:
An essential consideration with BTC miners is the increasing difficulty of mining the digital asset after halving, which is scheduled for around April 2024. BITF’s recent fleet upgrade aims to strengthen its capacity pre-halving, positioning itself as a frontrunner. With spot BTC around USD $44,000, the 392 BTC mined in November alone would translate to approximately USD $17 million in top line revenue. If potential BTC catalysts sky rocket the price to USD $150,000 as some suggest, November’s mining performance would represent nearly $60 million – and that’s just in one month. As one of the leading BTC miners globally, we highly recommend keeping BITF on your radar.
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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.
Picture by WorldSpectrum from Pixabay
Emerging Markets
Music Licensing Inc. (OTC: SONG): Unraveling the 1250% Surge and Current Valuation
Published
1 year agoon
November 10, 2023Music Licensing, Inc. (OTC: SONG) shares skyrocket a whopping 100% gain at the time of writing, marking an incredible 1250% surge since their October low of $0.0004. Many appear to be wondering the cause behind the sudden rise and after today’s spike we decided to do more research. Let’s dig into the company and its recent updates to figure out how they’ve pulled off such an impressive climb and what might be coming next.
Background:
Starting with their name – Music Licensing, Inc., it is more commonly recognized as Pro Music Rights. If you’re diving into your own research, you’ll likely want to search by, “Pro Music Rights” to find the investor information you’re looking for, you won’t find much under the stock name alone.
In a nutshell, SONG is a performance rights organization (PRO) and was the 5th to be established in the United States. If that mean’s absolutely nothing to you, skip to the next title for a better understanding.
Nethertheless, they’ve got some big players under their license umbrella, including TikTok, iHeart Media, Triller, Napster, 7Digital, and Vevo. In total, SONG holds an estimated market share of 7.4% in the United States, representing a whopping 2,500,000 works.
Look out for familiar artists like A$AP Rocky, Wiz Khalifa, and Young Jeezy in their impressive lineup. For more details on other notable artists, their press releases have a comprehensive list for you to explore.
Again if the whole idea of a Performance Rights Organization (PRO) feels confusing, you’re not alone. We did some digging to break it down for you.
What’s a Performance Rights Organization:
To keep it simple, think of a Performance Rights Organization (PRO) as the backstage manager for musicians. It’s like the middle person making sure that when your favorite songs are played in public—on the radio, at concerts, or even on your go-to streaming app—the artists get their fair share of the spotlight. These organizations, such as ASCAP, BMI, and SESAC, keep tabs on where and how music is being enjoyed and make sure the right people get paid for their tunes. It’s a behind-the-scenes gig that ensures artists get a nod and a paycheck every time their music takes center stage.
Latest Press Release:
This morning on November 10th, 2023, the company announced it will be cancelling 59.9% of their outstanding shares to enhancing Shareholder Value.
“Following the cancellation of an astounding 1,566,945,290 common stock shares, which reduced the total outstanding shares to 2,000,000,000, Mr. Noch is now embarking on yet another groundbreaking endeavor. He has pledged to cancel an additional 1,197,364,785 common stock shares, equating to a remarkable 59.9% of the current outstanding shares”.
Taking the cancellation of all these shares would also mean their market cap would be effected pretty drastically as well. If we do the math (at time of writing), 2B shares outstanding multiplied by the current stock price of $0.004 would mean ~8M market cap.
Okay Jake, so you’ve done the share reduction dance, claiming it’s a boost for shareholders. But really, what else does cutting down on shares mean for investors. Allow us to further break it down.
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Why Does it Matter?
Cutting down on the number of shares a company has floating around might seem like financial gymnastics, but it actually makes sense for a few reasons:
- More Bang for Your Buck (EPS): Picture this – you and your buddies own a pizza joint. If you slice up the pizza into more pieces, each one gets smaller. The same goes for shares. Less shares mean each piece of the company’s earnings pie goes to fewer shareholders, so everyone’s slice gets bigger. That’s what we call Earnings Per Share (EPS), and a bigger slice is usually good news.
- Share Price Perk: When a company trims down its shares, it can potentially give its stock price a boost because the float is now tighter. With a tighter float, it doesn’t take as much buying to move the stock price in either direction.
- Steady Ship: Fewer shares mean fewer folks holding the reins. It’s like steering a ship – with fewer hands on deck, it’s easier to keep things steady. Reducing the number of shares available for purchase also makes it harder and more costly for others to buy a big chunk of ownership, fortifying the company against hostile takeovers.
- Improved Financial Ratios: Reducing shares outstanding can even positively impact financial ratios, such as earnings per share, return on equity, and book value per share. These improvements of course make their financial profile more attractive to investors by and large.
Financial Highlights:
Despite having a market cap of around $15 million on YahooFinance, or $8 million if we consider the share consolidation, SONG has posted impressive numbers for its financials. They’ve managed to rake in a substantial $758 million in revenues, pushing a solid net income of $39 million. Their quarter ending in June, 2023 showed 93M in revenue, which was also net profitable too. Digging into their balance sheet, you’ll find $45 million in assets and a modest $61,000 in liabilities. Given those figures, this valuation’s definitely a head-scratcher and seems completely off.
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Behind SONG’s Low Valuation:
According to one user, @StockPicksNYC, on Twitter there’s a story behind why their valuation is so low given their fundamental financial backing.
Apparently the stock’s low valuation can be attributed to a previous incident where a storm-induced power outage at the CEO’s residence led the company to a downgrade on OTC markets, pushing SONG into ‘Expert Market‘ status with a ‘Shell Risk’ label.
Despite successfully addressing challenges to regain ‘Pink Current’ status and remove the ‘Shell Risk’ designation, SONG is still unable to update its information on the OTCM platform.
This is a well-documented problem with OTCM and there’s ongoing litigation with OTC Link, (an OTC Markets subsidiary), revolving around transparency and responsiveness issues during efforts to resolve downgrade-related issues.
This has now pushed SONG to take further measures to safeguard itself and its shareholders. They currently have a lawsuit filed against OTC Markets, where they’re pursuing $386.6 Million in Damages.
The good news is despite the lack of information on OTCM, SONG filed a Form 1-SA with the SEC to provide detailed information about their business.
OTC Expert Market:
If we look at the OTC Market tiers, there’s OTCQX, OTCQB, OTCPNK, OTC Expert Market, and OTC Grey. Back on September 28, 2021 the SEC put an amendment in place that stops brokers from quoting stocks without current information. That’s where OTC’s Expert Market steps in.
In a nut shell, any company that does not have current information publicly available trades on OTC Expert Market. Only broker-dealers, professionals or sophisticated investors are allowed to view quotations in Expert Market securities. It of course comes with massive risk given you’d be completely unaware of the company’s financial health.
Conclusion:
Among many factors, SONG’s impressive revenue and profits alone make the company appear considerably undervalued. Even without more developments, we can imagine a company of this caliber will inevitably draw increasing interest from investors. Considering the legal issues with OTC, a move to a bigger exchange like the NYSE or NASDAQ seems likely. They’d atleast be a great candidate considering the fundamentals. Keep in mind, this dynamic story could change at a moments notice, so be sure to keep them on your radar.
We will update you on SONG when more details emerge, subscribe to Microcapdaily to follow along!
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Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.
Picture by whoalice-moore from Pixabay
Emerging Markets
Lucy Scientific Discovery’s (NASDAQ: LSDI) Game-Changing Move: A Closer Look at the High Times Acquisition
Published
1 year agoon
September 8, 2023On August 8th, 2023, Lucy Scientific Discovery Inc. (NASDAQ: LSDI), a leading developer in the psychedelic drug industry, witnessed an impressive surge in its stock value, gaining approximately 25% in combined trading, including after-hours (AH) trading. The British Columbia-based company made headlines by announcing its strategic move to acquire intellectual property (IP) from the renowned cannabis publication, High Times Holding Corp. (HHC).
Additional Background:
Under this agreement, Lucy will exchange 20% of its shares and a series of payments for access to HHC’s valuable IP portfolio, which includes the rights to generate licensing and royalty income from renowned brands like High Times, 420.com, and Cannabis Cup, along with their associated domain names.
The partnership between #HighTimes and #LucyScientificDiscovery just makes sense. It's a harmonious alignment that should lead to success. This could be the start of something special as they journey towards ambitious goals.$LSDI $TSLA $SPY pic.twitter.com/qgXYkKQVoe
— Luca Grayson (@GraysonLucasa) September 7, 2023
Lucy’s commitment involves making semi-annual payments to HHC over a five-year period, structured around earnings before income, taxes, depreciation, and amortization (EBITDA) generated through the acquired IP. The flexibility exists for Lucy to fulfill these payments either in cash or through stock issuance and the announcement is generating considerable interest.
Furthermore, post-acquisition, Lucy will grant High Times the opportunity to operate retail outlets and distribute THC products bearing these prestigious brands within the United States. This privilege comes in exchange for an annual license fee of $1 million, set to double to $2 million annually once federal legalization of cannabis occurs in the country.
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Leveraging the brand rights secured from HHC, Lucy aims to bolster its revenue streams by expanding and enhancing its existing 18 licensing agreements, both domestically and internationally. These arrangements encompass a wide array of consumer products and merchandise, promising to further establish Lucy’s presence in the global market. The acquisition is expected to be finalized within the coming two weeks, marking a significant strategic move for Lucy Scientific Discovery Inc.
As a result of the acquisition, High Times is now a publicly-traded entity. Lucy anticipates that this agreement will contribute over $10 million in revenue to its financial results in the upcoming year, along with $5 million in EBITDA.
By purchasing #HighTimes assets, Lucy Scientific Discovery has struck gold. It has acquired a wealth of intellectual property, trademarks, and royalty prospects that will bring #LSDI $LSDI #lucyscientificdiscovery millions of dollars. pic.twitter.com/CEkqQnuFHm
— Rowan Dune (@rowandune) September 7, 2023
Adam Levin, the Executive Chairman of HHC, expressed optimism about the deal, noting, “This transaction will create exciting new growth opportunities for the High Times brand, under the leadership of Richard Nanula, a seasoned executive with extensive experience in major consumer brands and global corporations.”
Levin also emphasized High Times’ enthusiasm in becoming a significant shareholder of Lucy Scientific Discovery. Notably, Lucy completed its initial public offering and Nasdaq listing in February, offering 1,875,000 shares at $4.00 each.
Richard Nanula, CEO of the British Columbia-based company, shared his outlook on the acquisition, stating, “Lucy expects this acquisition to rapidly generate high-margin revenue within the global cannabis sector.”
In recent developments, Lucy introduced the sleep aid product “Twilight,” which includes amanita muscaria and reishi mushrooms. Additionally, the company joined forces with Wesana Health Holdings Inc. (OTCQB: WSNAF) in March to collaborate on the development of the CBD and psilocybin-based drug SANA-013, targeting conditions such as migraines, cluster headaches, and major depressive disorder.
$LSDI's Health Canada license allows approved psilocybin sales, backed by the Canadian government's significant funding $LSDI is on fire. #LucyScientificDiscovery $LSDI
— William James (@jaym_willy) September 8, 2023
High Times, founded in 1974, has a rich history, featuring works by renowned writers like Truman Capote and Hunter S. Thompson. Since 1988, its Cannabis Cup has stood as the most prestigious cannabis competition globally, with notable judges including Snoop Dogg, Joe Rogan, Tommy Chong, and other prominent figures in the cannabis industry.
While Lucy’s shares showed a nearly 16% increase to reach $0.68 on the Nasdaq exchange on Friday, it is worth noting that they have experienced a decline of over 77% over the past year.
Macro Trend:
In recent times, our articles have prominently featured cannabis-related topics, reflecting the growing popularity of stocks in this sector. LSDI’s acquisition aligns perfectly with the current climate, as the cannabis industry experiences a significant surge, coinciding with the Health and Human Services (HHS) exploring the possibility of reclassifying cannabis from Schedule I to Schedule III of the Controlled Substances Act.
Don't overreact to temporary $LSDI EPS decline. Psychedelics mega-trend makes risk/reward compelling.#Shrooms#LucyScientificDiscovery
— gianna snell (@skatette) September 8, 2023
While many countries around the world have already moved towards decriminalization and legalization, the United States has been relatively cautious in its approach. However, the consideration of such a reclassification represents a potential historic turning point. If such a change were to materialize, it would mark a substantial shift in the regulatory landscape, potentially revitalizing cannabis as an attractive investment opportunity. The industry is already showing signs of reestablishing its market presence and could once again become a noteworthy investment option.
I know this Mindful line is set to disrupt the market. Expecting a surge in stock price in the months ahead. #Lucyscientificdiscovery $LSDI pic.twitter.com/2ccR1CttA3
— Tom (@Tomi_l33) September 7, 2023
We will update you on LSDI when more details emerge, subscribe to Microcapdaily to follow along!
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Picture by herbalhemp from Pixabay
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