Hi all, Last week I brought you my DD for Greene Concepts, Inc. ($INKW), which shot up +122% the day after I posted. Since then, it has experienced a healthy pullback only to ramp up again to close today around +104% (I hope those of you who decided to invest have been profitable). Just yesterday they announced completion of a $2.875 million funding transaction that will allow the company to continue expansion efforts and the continued expedited growth of the Be Water™ brand. So, great news! Anyway, moving onto MINERCO, Inc. (The Magic Mushroom Company) (NOTE: As always, I encourage you to do your own reading as well and stick with current facts. Do not be misled one way or the other, whether bearish or bullish; simply do your own DD and decide for yourself what you would like to invest in. Additionally, don’t ever invest more than you can afford Additionally, I tried posting this last night but it got auto-removed. Since then, we've seen a jump this morning with healthy pullback as suspected) Minerco, Inc. Ticker: $MINE Sector(s): **Healthcare (**and Consumer Defensive) Industry: Drug Manufacturers—Specialty & Generic Location: May Pen, Clarendon, Jamaica CEO: Julius Jenge President: Paul Hoonjan (CEO of Lazurus Hollistic, a 3 year old cannabis company based out of Runaway Bay in Jamaica) Website: https://www.minercoinc.com/ Current Price (Closing 2021-02-09): $0.0158 / share +0.0106 (203.85%) ⬆
About the Company
From their website: “Minerco, Inc. (OTC: MINE), is the world’s first publicly traded companyspecializing in growing, research, production and distribution of psilocybin mushrooms and marketing worldwide*. In addition,* Minerco seeks to acquire and invest in CBD operating companies’ extraction, edibles, topical, white label products etc.” In addition to dealing with psychedelics and cannabis… “Though cannabis and psilocybin are legal in some areas, and decriminalized in others, they are still classified as Schedule 1’s federally (USA). This presents a challenge for individuals and merchants accepting debit and credit cards at point of sales.MINE is developing a platform to integrate blockchain with your debit card*. MINE established our own token “SHRU” which is currently on seven blockchain exchanges and are expanding to twelve by the end of the first quarter of 2021.”*
About the Industry
There are 3 markets at play here: 1) Psychedelics, 2) Cannabis, and 3) Fintech (CRYP.TO). These are three of the HOTTEST markets right now (aside from Biotech which has been absolutely booming within the last 3-6 months). Here’s some market research info about each of these areas: PSYCHEDELICS According to a report from Data Bridge Market Research, cited in the link below, the psychedelics drug market: · “…is growing with a CAGR (Compound Annual Growth Rate) of 16.3% in the forecast period of 2020 to 2027 andexpected to reach USD 6,859.95 million by 2027*, from USD 2,077.90 million in 2019."* · “… psychedelic drugs are used to enhance or change sensory perceptions, energy levels, thought processes, and to facilitate spiritual experiences…These drugs are used in the treatment of major depressive disorder, treatment-resistant depression, panic disorder, post-traumatic stress disorder, and opiate addiction among others.” · “Psychedelic drugs market has increased with increased number of psychedelic drugs as compared to the past few years andincreasing prevalence of depression and mental disorders in the U.S*”* · “Growing acceptance of psychedelic drugs for treating depression isalso increasing market value as the psychedelic drugs has repetitively proven its high rates of effectiveness for treatmentfor nicotine dependence, alcohol dependence, anxiety associated terminal illness and chronic PTSD as compared to other antidepressants” Source: https://www.prnewswire.com/news-releases/psychedelic-drugs-market-projected-to-reach-6-859-95-million-by-2027--301069861.html CANNABIS According to a report from Grand View Research: · “The global legal marijuana market is valued at USD 17.7 billion in 2019 and is expected toexpand at a significant CAGR of 18.1% over the forecast period (2020-2027)” · “Therise in the legalization of marijuana in various countries is one of the key factors driving market growth” · “Medical marijuana isused for the treatment of chronic conditions, such as cancer, arthritis, and neurological conditions, such as anxiety, depression, epilepsy, and Parkinson’s, and Alzheimer’s disease*. Such a wide scope of application is anticipated to bode well for the product demand.*” · “The legal marijuana business is creating jobs and opportunities with around 9,397 licenses in the U.S., including cultivators, manufacturers, dispensaries, and deliverers and labs. Owing to these factors, the legalization of cannabis has led to an increase in its demand in these countries and eventually eroding the black market.” · “Through the legalization of recreational cannabis, governments are trying to eradicate the black market andfocusing on gaining a substantial amount of tax revenues levied on the sale of these products” · “As the number of countries legalizing medical cannabis and its applications is increasing,the market is expected to witness robust growth in the forthcoming years*.”* Source: https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market CRYP.TO According to Fortune Business Insights: · “In 2019, the global market was USD 754.0 Mn, and it isanticipated to reach USD 1,758.0 Mn by 2027*, reflecting a* CAGR of 11.2%during the forecast period from 2020 to 2027.” · “Thepopularity of virtual or digital currency such as Bitcoins, Litecoins, Ethers, and many more are expected to drive the market in the forthcoming years.” · “Financial disaster is a major issue occurring in traditional banking and the financial sector. Financial uncertainty disturbs the economy by dropping the value of the currency. With Bitcoins or other cryp.tocurrencies, there is no major effect of the financial crisis on it as its value is balanced universally.Cryp.tocurrencies are better options in financial uncertainty for the regions with unstable economical structure, which is becoming a major market driving factor for the market.” Source: https://www.fortunebusinessinsights.com/industry-reports/cryptocurrency-market-100149 Most of us are aware of why and how big these markets are, but it is worth mentioning with relation to Minerco’s strategy here.
Financials
Based on what I could find, they are in the development phase and will begin production this year. In terms of profitability, it naturally follows that they are not at breakeven yet. The business model is mainly B2B (and some C) with an exit strategy being that “a major market-player demonstrates strong interest in buying the company”. In my opinion, this would most likely be exercised once they have generated revenue and proven to be profitable for several quarters / years. Minerco, Inc. ($MINE) had hired EQUIDAM SOFTWARE last month to create a business valuation. This information comes from a press release plus the generated valuation document. EQUIDAM can either be used by an individual to generate the financial projections, or you can tap into their dedicated team of financial analysts (who have to be HIRED). Based on the verbiage they used stating that they “hired” EQUIDAM, I assume the information is vetted to a certain extent. I can only have faith here and take their word for it. Using EQUIDAM, they created a “business valuation using 3 methods: IPEV (International Private Equity Valuation), DCF (Discounted Cash Flow) with LTG (Long Term Growth) and DCF with multiples model including the TV (Terminal Value) method. Minerco's Valuation report list IPEV at $297M, LTG AT $193M and DCF TV AT $1B”. Yes, 1 BILLION. Now, I’m not sure how I feel about HOW such a generous pre-money valuation was calculated…oh well I’ll assume it’s correct. Either way it hasn't affected my sentiment toward investing. If we looked at the current number of outstanding shares (13.04 billion) and multiplied by the current share price ($0.0158) we get a market cap of $206 million, so there’s still some room to grow per this valuation. Moving on. Projections of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): 01/2021 – 12/2021 $11,480,000 01/2022 – 12/2022 $62,168,000 01/2023 – 12/2023 $175,900,000 Sources: https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf https://www.newsfilecorp.com/release/72287/Minerco-Inc.-the-Magic-Mushroom-Company-Receives-1B-Valuation-PreMoney-Business-Valuation-from-EQUIDAM https://www.otcmarkets.com/stock/MINE/security
Pre-December 2019 (Old Company(s))
These may have been the old versions of Minerco that many of the investment and Reddit OGs remember. Different company(s). The one(s) that many remember as a P&D. This was a beverage company that operated via the same ticker $MINE, but is distinct and SEPARATE FROM TODAY’S Minerco, Inc. We all know that Tickers can change ownership so that’s fine. Here’s the old company’s blurb: “Minerco Resources, Inc., through its subsidiary Athena Brands, Inc. (Athena), is engaged in beverage business. Athena is a specialty beverage company, which develops, produces, markets and distributes a diversified portfolio of good-for-you consumer brands. Its brands include VitaminFIZZ, Vitamin Creamer, COFFEE BOOST and The Herbal Collection. Athena also owns a majority interest in Avanzar, a sales and distribution company located in Brea, California” Athena Brands seems to be inactive according to its FB: https://www.facebook.com/AthenaBrandsInc/ The CEO and Chairman of both Minerco Resources (again, the old company) is/was V. Scott Vanis and at one point Milton Murcia (no info on him). Scott Vanis has an inactive LinkedIn profile (you’re free to look it up), which hasn’t been updated in ages (hence the dates not changing), just like the old Organization page on LinkedIn: https://www.linkedin.com/company/minerco-resources-inc./ Notice this was categorized as an Oil & Energy company. Who knows how many times this ticker ($MINE) has changed hands and was used by different companies. Either way, based on this information and recent activity it is apparent that the new Minerco, Inc. aka TODAY’s company (2020-Present) is a distinct entity operating under the same ticker. Not only is the industry and targeted market different, the CEO and President are different people.
Accomplishments in 2019-2020
From 2019-2020 alone, the following has happened with Minerco, Inc. ($MINE):
December 2019: Company has been acquired by a specialized investment firm, and entered into the psilocybin "Magic Mushrooms" market. The $MINE Ticker is backronym’d to fit the new direction of operations
(Mushrooms InterNational Enterprises, or MINE). https://finance.yahoo.com/news/investment-firm-acquires-minerco-announces-144000669.html 2) January 17, 2020: Completed acquisition of 12-acre parcel of land in Jamaica for relocation and production facility. This will be where they will create and build the largest psilocybin operation in North America, and are expecting it to produce upwards of 10,000 kilos annually for export to licensed countries/states. Jamaica “…does not have any laws labeling magic mushrooms as illicit drugs. In fact, Jamaica is at the forefront in furthering research into the healing powers of magic mushrooms and how they can be safely applied towards medicinal purposes. This, following the launch of the world's first magic mushroom research center, located at the University of the West Indies in Mona, Jamaica.” (Trivia: did you know Jamaica and Brazil are the only 2 countries where Psilocybin is fully legal? They are able to freely export easily without going over US airspace) https://finance.yahoo.com/news/minerco-inc-build-largest-magic-130000749.html 3) October 22, 2020: Announcement that they have developed a Shroom Blockchain token (SHRU, on the ETH platform) for Shroom investment, and to raise additional capital for their Jamaica project. As mentioned earlier, the strategy here was to circumvent the fact that psychedelics are still classified as Schedule 1’s federally (USA), by creating an alternate avenue for sales. This will allow dispensaries to accept Debit Card purchases for psilocybin (and cannabis) even though it is federally illegal. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-creates-blockchain-token-shru-for-shroom-investment 4) December 14, 2020: Minerco’s SHRU token gets approval to launch on 7 Blockchain exchanges: Bitcratic, ForkDelta, EtherDelta, Bamboolay, SwitchDex, SaturnDex, and McAfee. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-company-token-shru-gets-approval-on-7-blockchain 5) December 17, 2020: Cleaned up $MINE financials (ongoing, due to previous owners) and OTC listing. Retained SEC registered Crowd Fund platform for capital raise. “Upon raising funds, MINE has 4 key strategies targeted with funds. a) Acquire andRetire Toxic Debt to create a stronger and stable balance sheet*.* b)Acquire equipment needed to produce 1m psilocybin tablets daily to be sold to wholesalepurchasers in Oregon, Vermont, domestically and Jamaica, Amsterdam, Canada globally. c)Establish cash collateral reserves for MINE'S blockchain gateway and token SHRU*. This cash collateral will spring board SHRU token onto the top Exchanges worldwide.* d)Acquire and renovate properties for Production and lease in Oregon, Vermont, Jamaica*.”* https://finance.yahoo.com/news/minerco-magic-mushroom-launch-5m-103000065.html 6) December 20, 2020: Minerco, Inc. and Anything Technologies Media host the world’s first “Shroom Zoom” (meet and greet with company + viewing and discussion of CNN’s “Psychedelic Healing” special) https://www.bloomberg.com/press-releases/2020-12-18/minerco-inc-and-anything-technologies-media-host-the-world-s-first-shroom-zoom-cnn-viewing 7) December 21, 2020: Minerco, Inc. the Magic Mushroom Company Gains Acceptance in Psychedelic Invest Index made up of 20 companies listed (Nasdaq, AQL, CNX, and OTC are exchanges representing the collectives in the industry) https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-221200790.html https://psychedelicinvest.com/index/ 8) December 28, 2020 (originally reported): EQUIDAM Software hired for Pre-Money Business Valuation https://ca.finance.yahoo.com/news/minerco-inc-magic-mushroom-company-130600738.html https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf
News in 2021
After a relatively busy 2020 with planning and implementing a strategy in the middle of a global pandemic, Minerco’s news streak continues in 2021 as follows:
January 4, 2021: Minerco, Inc. signs a joint venture letter of intent (LOI) with Jamaican Firm Lazurus Holistic (CEO Paul Hoonjan) to grow, process, and extract psilocybin and cannabis for export to Canada and Europe
These plans are as stated by Paul Hoonjan himself during the January 24th 2021 Shareholder summit, which he is confident will be met:
Start February 2021: Begin Capital Raise of $5M
Start February 2021: Pilot Production of psilocybin and cannabis once they finalize partnership between Minerco, Inc. and Lazurus (in February 2021) in the form of a SPV or SPAC
Complete by April 2021: Payment Gateway available for SHRU on Apple and Android
Complete by May 2021: Finish Capital Raise of $5M
Complete by July 2021: Jamaica Expansion / US Office. Also will begin producing their microdose tablets (microdots) during this month, from the raw products produced from February 2021. Paul is cited as saying that they can produce 4,480 microdots for every pound of mushroom. This amounts to an approximate $21,000 of revenue per pound of mushroom
Start August 2021: GENERATE REVENUE
Source (I recommend starting at 57:15 for Paul’s segment, and if you wish to skip over what some consider the “airy-fairy” side of being into psychedelics i.e. meditation, visions boards etc.): https://www.pscp.tv/w/1vOxwERPzAgGB
Minerco, Inc. is venturing into an industry that has a few small key players (think NUMI, TRIP, MMED etc). With respect to psychedelics specifically, the “Shroom Boom” has just gotten started after an exciting 2H 2020. I am optimistic of their growth in this area based on their location (strategically placed in a legalized Jamaica), and impressed by the idea of leveraging cryp.to to circumvent any purchase barriers that some businesses or customers could have in their country. Whoever is taking care of their PR and timing the releases, has been doing an excellent job. Everything has been timed so well to keep bumping the stock up, which has increased over 900% in the last 1.5 weeks alone (though it was somewhat steadily hovering between 0.0015-0.002 for some time). I’m expecting a healthy pullback soon (no guarantee), which I would plan on holding through anyway. As far as I am concerned, this is the ground floor for this company and as long as they keep up the steady growth, they have the potential to be a pretty decent contender in the market. Note that I am not considering fundamentals since they are pre-money. What I’ve observed in my time investing, is that the market has become so detached from fundamentals that big institutions themselves are coming around to “market sentiment” being a bigger factor than fundamentals alone (think TESLA crushing valuations and absolutely MOONING above all expectations through 2020). Of course this applies to some securities more than others. My feeling is that Paul Hoonjan comes across as a competent President that can steer this company in the right direction. What I love most, as “airy” as they can be in the first 20-30 minutes, are the opportunities to join Zoom calls with the company. That is face-time with shareholders that many companies don’t bother to have. For me, that is valuable since I want to know who I am dealing with. When we invest, we either invest in the product, the people, or both. Paul seems very confident that they can meet all their goals this year, and as a shareholder that brings me relief and a sense of excitement for what is outlined and on the horizon for 2021 (and beyond). I am not only investing in my conviction that psychedelics, cannabis, and cryp.to will continue to grow, but also in the Minerco, Inc. team. Two things I’d like to address before I wrap this up. There was one Reddit user in particular that was on a rampage to tear this company and call it a scam on a recent post, without any evidence. I could’ve sworn I saw this user post 10 times in the same thread. There wasn’t any evidence to point to their claims, other than perhaps the practices of the OLD COMPANY BEFORE ACQUISITION. It also didn’t help that they were very upset about investing $10… Earlier today, I had a back and forth with another Reddit user who was also making accusations against the company. In my post I posted a screenshot of the shareholder call slides, which lead to them accusing me of misleading others. How can I mislead someone by literally reposting news? This user stated that Minerco, Inc. lied about partnering with Mydecine in a press release, and proceeded to call them a scam company. I scoured for references online and realized that they were most likely referring to the following article related to the partnership between Minerco, Inc. and Lazurus (which is very real and verified by the presence of Paul Hoonjan): https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-120600586.html In it, Mydecine is cited once in PASSING “Lazurus Holisitic, an expert in mycelium, recently completed their first export of Psilocybin mushrooms to Mydecine Innovations Group Inc. in Canada”. To me, it is easy to understand that they are not alluding to any partnership or transaction between Mydecine and Minerco, Inc. (said user realized their mistake in mis-reading, and deleted their earlier comments to me) All of that to say, please consider being responsible with the information you put out there. Everything I’ve outlined above (aside from my thoughts) is public information and available online. I’ve simply compiled it so it’s easier to digest; should you go looking for it online, it is easily accessible to you. Ultimately, you decide what you want to do with the information. However I ask that for any stock, you don’t make accusations or assertions (positive or negative) that are not backed by facts. It’s just as bad to fan euphoria with no facts aside from posting “OMG THIS IS HITTING $1 TOMORROW BETTER BUY NOW STUPID BEARS!” on a forum. You not only hurt the company in the process, but you also hurt fellow shareholders. Of course, this is not financial advice and I am no professional. Ultimately, it is up to you what you would like to invest in. Always invest responsibly and if you decide to do so, ensure that you aren’t taking on greater debt. Always make your own informed decisions. Hopefully this DD has at least provided you with some clarity and a wealth of information regarding Minerco, Inc. ($MINE) GLTA; I wish that your families are well in this time and your (net) trades forever remain profitable. My current position 1,000,000 shares @ $0.002. For me, this is a BUY AND HOLD
Lost in the Sauce: Trump, Cruz, and Gohmert team up to incite election-related violence
Welcome to Lost in the Sauce, keeping you caught up on political and legal news that often gets buried in distractions and theater… or a global health crisis. Housekeeping:
HOW TO SUPPORT: I know we are all facing unprecedented financial hardships right now. If you are in the position to support my work, I have a patreon, venmo, and a paypal set up. No pressure though, I will keep posting these pieces publicly no matter what - paywalls suck.
NOTIFICATIONS: You can signup to receive notifications when these posts are done.
Election shenanigans
I put the latest info on Trump's phone call to Raffensperger in this comment.
According to experts, Trump’s conduct has potential criminal exposure:
A federal statute makes it a crime when one “knowingly and willfully … attempts to deprive or defraud the residents of a State of a fair and impartially conducted election process, by … the procurement, casting, or tabulation of ballots that are known by the person to be materially false, fictitious, or fraudulent under the laws of the State in which the election is held.” A Georgia statute similarly provides that a “person commits the offense of criminal solicitation to commit election fraud in the first degree when, with intent that another person engage in conduct constituting a felony under this article, he or she solicits, requests, commands, importunes, or otherwise attempts to cause the other person to engage in such conduct.” …The hard part for prosecutors would be proving Trump’s state of mind, because the statutes require proof of knowledge and intent. Prosecutors would have to show that Trump knew that Biden fairly won the election, and Trump was asking for Georgia officials to commit election fraud. And it’s not clear prosecutors could make that case.
At least 12 Republican senators plan to challenge Biden’s Electoral College win on Jan. 6, when Congress is set to officially count the votes. The effort is being led by Sen. Ted Cruz (R-Tex.) and includes Sens. Ron Johnson (R-Wis.), James Lankford (R-Okla.), Steve Daines (R-Mont.), John Kennedy (R-La.), Marsha Blackburn (R-Tenn.), and Mike Braun (R-Ind.), as well as new Senators Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Bill Hagerty (R-Tenn.), and Tommy Tuberville (R-Ala.). Separately, Sen. Josh Hawley (R-Missouri) is pursuing a similar plan.
"Congress should immediately appoint an Electoral Commission, with full investigatory and fact-finding authority, to conduct an emergency 10-day audit of the election returns in the disputed states. Once completed, individual states would evaluate the Commission’s findings and could convene a special legislative session to certify a change in their vote, if needed," the senators said in a joint statement. “Accordingly, we intend to vote on Jan. 6 to reject the electors from disputed states as not ‘regularly given’ and ‘lawfully certified’ (the statutory requisite), unless and until that emergency 10-day audit is completed."
Their plan is not going to succeed in preventing Biden from taking office, as majorities in both the House and the Senate would need to support a challenge against a state’s electoral votes. For an objection to be made, at least one member of both the House and Senate would need to submit it in writing. Then, the House and Senate separately convene to consider the issue. Debate is limited to two hours for each objection. After debate concludes, the House and Senate vote to uphold the objection and throw out the state’s votes. If the majority of the House AND the majority of the Senate does not uphold the objection, the state’s electoral votes are counted as cast.
Vice President Mike Pence’s role is simply to preside over the joint session, opening and presenting the certifications from each state. In his absence, the Senate pro-tempore Sen. Chuck Grassley (R-Iowa) will lead the session. At the end of the process, the presiding officer announces who has won the majority of votes for president and vice president.
The most immediate danger from Trump and Cruz’s doomed election gambit is rightwing terrorism and general violence: Trump, in particular, is inciting his supporters to swarm D.C. on Jan. 6. “JANUARY SIXTH, SEE YOU IN DC!” Trump tweeted last week. Four rightwing rallies are scheduled, including one headlined by George Papadopoulos and Roger Stone. The Proud Boys and other extremists are planning to attend the rallies and may set up an “armed encampment” on the National Mall, according to the Washington Post. On social media platform Parler, the leader of the Proud Boys said that members will be there “incognito” and may “dress in all black” to impersonate leftwing protestors.
Enrique Tarrio: "The ProudBoys will turn out in record numbers on Jan 6th but this time with a twist...We will not be wearing our traditional Black and Yellow. We will be incognito and we will spread across downtown DC in smaller teams."
Rep. Louie Gohmert has more explicitly tried to incite violence, saying the failure of his legal challenge to the election means “you gotta go the streets and be as violent as Antifa and BLM.” (clip)
At the same time, pro-Trump lawyer Lin Wood suggested that Pence could “face execution by firing squad” for “treason” if he doesn’t go along with the attempt to subvert the election.
Obstructing the transition
Biden’s transition director has accused the Office of Management and Budget of stonewalling the incoming administration’s team. OMB Director Russ Vought is not allowing key staff to meet with the transition team to help prepare the president-elect’s first annual spending plan, a move that could delay major proposals. Vought pushed back on the charges, saying that his agency needs to focus on finalizing the Trump administration’s regulations before the president leaves office.
“OMB leadership’s refusal to fully cooperate impairs our ability to identify opportunities to maximize the relief going out to Americans during the pandemic, and it leaves us in the dark as it relates to Covid-related expenditures and critical gaps,” [Biden transition Exec. Dir. Yohannes] Abraham said.
Earlier last week, Biden himself said Trump officials are not cooperating with his team, singling out the Defense Department for obstructing information on crucial national security issues. “Right now, we just aren’t getting all the information that we need from the outgoing administration in key national security areas. It’s nothing short, in my view, of irresponsibility,” Biden said. The Defense Dept. finally scheduled meetings with the incoming team this week, after not briefing the transition for weeks.
The timing of the resumption in meetings is notable because it comes after the one year anniversary of the U.S. assassination of Iranian Maj. Gen. Qassem Soleimani on Jan. 3. NATO officials are reportedly worried about the lack of coordination from the Trump administration: "We need the incoming Biden administration to be fully briefed and ready to deal with these very dangerous issues facing NATO's security."
Sabotaging the Biden Administration
U.S. Agency for Global Media CEO Michael Pack is taking steps to keep control of Radio Free Europe and Radio Free Asia during the Biden administration. As chairman of the boards of Radio Free Europe and Asia, Pack and his fellow members have added binding contractual agreements that will make it impossible to remove him or other pro-Trump allies from the board in the next two years.
In other words, although President-elect Joe Biden has already signaled he intends to replace Pack as CEO of the parent agency soon after taking office in January, Pack would maintain a significant degree of control over the networks.
The State Department is likely to designate Cuba as a state sponsor of terrorism “as an 11th hour effort to create hurdles for the incoming Biden administration.” The label, which requires the approval of Secretary of State Mike Pompeo, would undo a major accomplishment of the Obama administration. To take Cuba back off the list, the Biden team would need to conduct a formal review, a process that might take several months.
Such a designation would impose restrictions on US foreign assistance, a ban on defense exports and sales, certain controls over exports and various financial restrictions. It would also result in penalization against any persons and countries engaging in certain trade activities with Cuba.
The Trump administration has been rushing to finalize a myriad of rules before Biden’s inauguration. Since Election Day, the Trump administration has issued about three to four times as many new regulations as it did during other periods of Trump’s presidency. Rules that haven’t been finalized or taken effect can be suspended by an incoming president, which Biden has said he intends to do. By contrast, rules that are finalized can take months, or even years, to undo.
“As a general rule, it takes at least as much process to undo or modify a rule as it does to put the rule in place,” said Jonathan H. Adler, a professor and an administrative law expert at Case Western Reserve University School of Law. “The Trump administration is magnifying that challenge for the Biden administration.”
Trump loyalists are urging the president to stymie Biden’s efforts to rejoin the Paris climate agreement and the Iran nuclear deal. Sens. Ted Cruz and Lindsey Graham are working to get the agreements submitted to the Senate for ratification, requiring a two-thirds vote, with the goal of failure. While such an outcome wouldn’t prevent Biden from rejoining the accords, Cruz and Graham hope it would make their resurrection more problematic.
A vote against them would signal GOP opposition to the world and, they hope, undermine any unilateral action by Biden to rejoin the agreements. One senior congressional aide told RCP that sending them to die in the Senate “would be the final nail in the coffin.”
Further reading: “Biden To Be Saddled With Trump’s Payroll Tax Deferral Mess,” Forbes. Further reading: Biden will inherit a backlog of tens of thousands of visa requests from the wars in Iraq and Afghanistan — and a bureaucratic tangle that refugee advocates say President Trump ignored or made worse.
Trump money and properties
Manhattan District Attorney Cyrus Vance is employing forensic accounting specialists to examine Trump’s finances and business operations. Vance is looking “for anomalies among a variety of property deals” and trying to determine “whether the president’s company manipulated the value of certain assets to obtain favorable interest rates and tax breaks”.
The analysts hired by Vance probably have already reviewed various bank and mortgage records obtained from Trump’s company as part of the ongoing grand jury investigation, and they could be called on to testify about their findings should the district attorney eventually bring criminal charges
In yet another shady business deal connected to Trump, the United States sold the ambassador’s residence in Israel for more than $67 million. The person who bought the residence is none other than Trump mega-donor Sheldon Adelson. The property only became available due to Trump's controversial decision to relocate the U.S. Embassy from Tel Aviv to contested Jerusalem. Furthermore, State Dept. representatives reportedly lied to Congress about the sale, perhaps to hide that Adelson purposefully overbid.
For now, there is no alternative residence for the ambassador, David Friedman, Trump’s former lawyer, who currently uses a suite at Jerusalem’s King David Hotel or rooms at the former Jerusalem Consulate General when he spends nights in Jerusalem… As a result, the United States appears likely to end up leasing the residence it has owned since 1964 from the GOP-affiliated casino mogul. “It is very strange that we are now paying Sheldon Adelson,” a congressional aide told The Daily Beast. “It is not above board. We have a number of questions. Did they get two independent appraisals? Was it a sweetheart deal? Was Adelson the highest donor? Was there a reason to sell it now?”
Trump’s businesses have taken in $10.5 million of donor money over the course of his presidency. $8.5 million came from the Trump campaign and related entities that Trump controls directly; $2 million came from other Republican candidates and committees. The biggest beneficiary was Trump’s NYC hotel, taking in $3,039,979 over the four years of his presidency, with $891,003 of that in just the final four months of the campaign. Trump’s DC hotel is ramping up room prices and requiring a two-night minimum stay for two key events this month, as the president tries to squeeze more profit out of his office. On Jan. 6, when Congress is set to formally count the votes cast by the Electoral College, room rates are listed at over eight times the price of surrounding dates. Trump is encouraging his supporters to attend a protest of Biden’s win on the 6th. A room during the inauguration costs five times the normal rate, at $2,225 per night. Trump’s Turnberry Resort in Scotland posted a £2.3 million ($3.1 million) loss in 2019, marking the sixth year in a row it has failed to turn a profit under his ownership. Since Trump took over the historic property in 2014, its losses now total nearly £45 million ($61.5 million).
The fact Turnberry remains in the red comes in spite of significant tranches of payments it has received from the US government during Mr Trump’s single term in office… the US Secret Service spent nearly £25,000 to accommodate its agents at the resort during business trips by Mr Trump’s son, Eric, an executive vice-president of the family firm. Since Mr Trump’s election, the property has received close to £300,000 from the Secret Service, US State Department, and US Defence Department
A Florida state lawmaker is calling for Mar-a-Lago to be penalized - and possibly shut down - for flouting coronavirus restrictions during a New Years Eve party. While Trump and the first lady did not attend, son Don Jr., attorney Rudy Giuliani, Rep. Matt Gaetz, and Fox News personality Jeanine Piro were captured on video among the maskless crowd. Guests paid as much as $1,000 for access to the ballroom to be entertained by Vanilla Ice.
State Rep. Omari Hardy: “My constituents are not snowbirds like @DonaldJTrumpJr & @kimguilfoyle. My constituents live here. This is their home, and they're going to have to deal w/ the consequences of a potential super-spreader party at Mar-a-Lago long after Junior & wife leave here on their private jet.”
Are you ready for a Donald J. Trump Airport? According to the Daily Beast, Trump has been asking aides about the process of naming airports after former U.S. presidents. Further reading: “Jared Kushner’s family real estate business wants to raise at least $100 million in capital through Israel’s bond market… Kushner has helped spearhead a series of moves that have been applauded by the conservative pro-Israel community, including moving the U.S. Embassy to Jerusalem from Tel Aviv and recognizing Israeli sovereignty in disputed areas such as the Golan Heights. Kushner also has close ties to Israel’s prime minister, Benjamin Netanyahu.”
Miscellaneous
The Census Bureau missed it’s end-of-year deadline to produce numbers that determine representation in Congress and the Electoral College for the next decade. The agency is working toward Jan. 9 as an internal target date for completing the current stage of processing records. "If we miss Jan. 9, it's hard to envision that we would get apportionment done before inauguration," a Census employee told NPR.
The final timing of the 2020 census results' release could undermine President Trump's efforts to make an unprecedented change to who is counted in key census numbers before leaving office… If the first census results are not ready until after Trump's term ends on Jan. 20, it would be President-elect Joe Biden, not Trump, who would get control of the numbers, which are ultimately handed off to Congress for certification.
Not much information about this company, so I started writing my own research on the company. Here is the investor presentation: https://nexters.com/images/inv_info/Nexters_Investor_Presentation.pdf If want to understand the valuation of the company, the risk/reward, and the potential I need to answer the following questions:
What is Nexters Global?
SPAC is a safe bet?
Comparison with its competitors?
$1.9B is cheap or expensive?
Let's begin!
1. What is Nexters Global?
Nexters Global is a fast-growing mobile game development company with $450 million gross revenue* (2020), 85 million total game installs, 5.4 Million monthly active users, with 10x growth of revenue in the last 2 years. Already profitable with $110 million net profit in 2020. The management has more than 10 years of experience in creating games. Located in Cyprus (Europe) with roots in Russia (a very strong IT region). They are well known for being in Game Development since early 2005 in the epicenter of the web, social and mobile game development. https://preview.redd.it/juhbhhuwhmg61.png?width=640&format=png&auto=webp&s=529a0e927aa3bc3205430d97204d3d625f36fc8d Since the launch, the company has proven that it can develop, publish and use marketing to scale its games. With 37% of its revenue coming from the US/Canada, 23% from Europe, 19% from Asia it is already an international company. \In the investor presentation Nexters Global states 310 million net revenue, as at the* sec.govreports it is more common (example) to use thegross revenuefor gaming companies as their base metrics. That's why here and below I’m usinggross revenue. Please see the spreadsheet below with a comparison to other companies. Further plans are: https://preview.redd.it/t9kdphd0img61.png?width=994&format=png&auto=webp&s=b70e92455e253033e99a91b17b0a1f85012e1e5b
To increase the revenue of existing games (basically, double the revenue in 3 years).
Launch new titles in 2021: 3 new games announced
Working on the sequel of their best selling game "Hero Wars 2".
Use cash to acquire other game developers with great games to amplify revenues using their expertise and marketing/production capabilities to make global hits.
2. SPAC is a safe bet?
There are so many SPACs, that we should be very selective on what we choose to buy. To do that we need to check if the business is real. There are different kind of risky SPAC’s on the market:
Without product
Without revenue
Without an addressable market
Without proof that they can scale
We need to verify that Nexters Global is not on that list. Let’s have a look at the company: The product? Web, Social, Mobile Games. To check if their numbers are real simply open the game page in App Store and Google Play store. Android Apps by NEXTERS GLOBAL LTD on Google Play Nexters Global LTD Apps on the App Store The top game has more than 50,000,000 installs with more than a million positive reviews and an average rating of 4.6. With other games/stores combined, it correlates with the company's stated 85 million installs. https://preview.redd.it/jwh51gm2img61.png?width=735&format=png&auto=webp&s=428ec2dc85a4a6c1d51c67aa8fa1f7876edd3dab I like that I can see the numbers myself, and also can "touch" the product and how it works. it increases my confidence in owning the stock. Actually, I have been playing their top-grossing game Hero Wars for several months last year. And I loved it... loved it so much that I’ve spent around ~1000 dollars within 3 months. And I’ve seen players that spent much much more than me (higher ranked, had much more power and ranks). And there were so many players that they had to add new servers each week, or even daily. The first impression is that I really like the product. I see how it works. The revenue. It's huge. In the SPAC world, there are companies that can’t make revenue but predict that their revenue will go up 10-20-50x times in 3-5 years. Usually, such companies are SCAM as they mislead investors with revenue that will never happen. On another side, Nexters Global has already $450 million in revenue with a $110M profit. And the growth rate is +177% YoY. And even the slowdown in growth means the actual increase in revenue substantially, just by the magic of the compound growth. I like the numbers very much here. The addressable market How big is the addressable market? The World’s 2.7 Billion Gamers Spent$175 Billion on Games in 2020; The Market Will Surpass $200 Billion by 2023. So Nexters Global is well-positioned in expanding market. https://preview.redd.it/tf41au04img61.png?width=888&format=png&auto=webp&s=7547a1d3c2c8da43554a655d9b32bb4aaf4f2d97 Revenue geography shows that it is also diversified well. The company has proven that it can generate revenue all around the world, not just in its local market. That is very important in order to calculate the valuation of the company. https://preview.redd.it/sxq08qg5img61.png?width=362&format=png&auto=webp&s=ed9b771d632268efb31d96d57c831d61d8caf12f But how long Nexters can generate revenue? Unlike the traditional PC gaming, where the peak of sales occurs after the launch of the game and then shrinks a lot, in the online mobile game market - games get updates each month/quarter to engage customers and make them stay in the game longer. Games with great engagement + marketing resources can stay on top charts for many years. You just reinvest part of your revenue into marketing to earn even more. It works for games with high revenue per player (ARPPU). Nexters Presentation: $106 - Average net bookings per paying user(2) (Q4’20) https://preview.redd.it/jsqcmby6img61.png?width=666&format=png&auto=webp&s=f96f6ef490ee2b16cf6ca01e8508df578bfdd302 Percentage of paying users increases. Average net booking increases. With the 6% of paying users and $106 net payment - it is quite easy to calculate that you earn $6.36 from any user that downloads the app, so you can spend on advertisement a lot of money and you will earn even more. When you have 277% revenue growth in 2019, 177% in 2020 it won’t just stop growing. Next year double-digit growth of revenue is highly probable. From a statistical behavior the growth slowdown to zero is very unlikely. If we take examples of other super-hit games from Supercell (Clash of Clans) and Playrix (Gardenscapes). Example: Playrix did continue to grow since 2016 explosive revenue withadding +41% YoY growth in 2018 +35% in 2019. https://preview.redd.it/so9ijp08img61.png?width=667&format=png&auto=webp&s=6f6acbdf41374f89c045bb07c4b4e5f7dc235bf9 Another example: Supercell's revenue continued to grow at least 2 years after the revenue explosion before slowing down. https://preview.redd.it/tjjuf159img61.png?width=855&format=png&auto=webp&s=01116616d83bbeeb34bbe98da012d22c3964f5d5 The growth Great games could continue to grow. Nexters Global estimates their net revenue to reach $562 million dollars. That equals to ~$802 million gross revenue in 2023. And the company is valued at just 1.9B now. Re-think that.📷 This chart also shows that they project only +10.5% YoY growth in revenue in its current games after this year's gain. Which I think is too conservative considering the examples above. I understand that they’ve chosen the strategy not to mislead investors and should stay conservative, but I think they will easily beat their own estimates and 20-25% growth is much more realistic. The good thing is that we can track their performance in terms of downloads and revenue in stores. We can stay ahead and know the data earlier than official numbers come out, which brings another level of transparency for investors.
Kismet Acquisition One Corp company
The company is led by CEO and Director Ivan Tavrin, the founder and Principal of investment firm Kismet Capital Group. Tavrin previously served as the CEO of PJSC MegaFon, Russia's second largest telecommunications operator, and before that, he founded UTH Russia, one of the largest independent media broadcasting groups in Russia. Kismet Acquisition Two plans to target the internet and technology sectors operating in Europe, including Russia, as well as businesses established by founders with Russian origins. Credit Suisse, BofA Securities and LionTree Advisors served as financial and capital markets advisors to Kismet Acquisition One Corp. Advisors look good to me. The CEO's background and experience too. Additionally, he was one of the shareholders in the recently launched Russian IPO "OZON" marketplace. Which is now +120% up. The only thing that sounds scary here is the word “Russia” everywhere. Is there an unwanted geopolitical risk? From the legal point of view, every entity is registered under British Law jurisdictions (Cyprus, BVI). So, basically, there shouldn't be any problems. Well... they would better be in the US as many investors don’t like foreign companies. But there are great examples of super successful Supercell and Rovio that were NON-US too. And we know that the Russian Tech-sector is high qualified (Google Founder - Sergey Brin, Pavel Durov - Telegram, Vitalik Buterin - Etherium, and even Russian Hackers is a “meme”). And as I said before their business looks crystal clear, anybody can check their metrics so they can’t fraud the data, unlike, for example, Luckin Coffee did in China. Therefore, this kind of risk is eliminated.
3. Comparison with its competitors?
Let's talk about numbers. I’ve tried to compare the game developer to its direct competitors. I've selected only companies with major mobile game-driven revenue. Here is the full spreadsheet access: Nexters Global Comparison I’ve marked the concerning metric with yellow and red, Good metric with green, Superb one with dark-green color. https://preview.redd.it/tmsosbtaimg61.png?width=1079&format=png&auto=webp&s=2b50cd7a1a54115bb496849c43b3611094fc6309 Please take time to read the numbers and come back after. Update!With the latest news that Electronic Arts buys GLU Mobile with +39% premium from the market - the sector is officially undervalued. Thoughts on Nexters Global
Nexters is big enough in terms of revenue
The MAU (Monthly Average Users) is not very big. While you can consider that as a “minus” that's actually the sign of a young company, with the opportunity to attract more users “cheaper” (with high efficiency). When you already big and you have hundreds of million players, you have to spend more and more money on user acquisition.
No diversification. That’s a red flag. Hearing of 3 titles coming next year + Hero Wars 2 to be developed. And the idea of acquisition of small developers with excellent games to amplify their revenue 10-100 times promoting it around the World is the Next goal for Nexters. This will bring diversification.
Remember that Supercell (also a European company, HQ in Finland) with its only best selling game was sold to Tencent at a $10.5 billion valuation. This "Hero Wars" game is currently following its path (in terms of growth numbers & revenue).
Games are high gross margin projects. I assume this gross margin from the cost of revenue is: AppStore/Google Play 30% commission + spending on maintaining the Servers. That brings me to the industry average of 65%
Marketing spending numbers are rational (20-40% zone), in order to stay profitable and to maintain modest growth.
It's already a large scalable company. No “company growth issues” seen through this data. Sign of good management here.
Unusually high net income seeing here. Assumption: Research & Development costs /Administrative spending / Sales and Marketing is much lower compared to other US companies. Probably they benefit from HQ being outside of the US. That should affect the company multiplicators (P/E) positive.
With not very high US Market penetration - the opportunity still there.
Game reviews/rating is essential in mobile games: The higher-rated games = the cheaper is the cost of user acquisition. The longer players stay in-game. The “4.5” rating tells me that customers of this company are very satisfied.
Fascinating growth. Very young company. The slowdown in growth is expected but compound growth is still very probable.
Estimated Compound Annual Growth (CAGR) is 25%. Which would bring the company ~$802 million revenue in 2023.
Is the company valued right? It's more profitable in comparison to its competitors, its double-triple digit growth company with all signs of the trend to continue.
The company is honest with its estimates and setting very realistic numbers. Other SPACs prefer to predict 10,20,50x revenue in the future even without proving they can scale. This company is doubling-tripling every year and shows estimates of 25% annual growth each year.
I ended up with numbers: P/S = 4.19, P/E = 17.27. This valuation seems just right with current earnings and the sector, but not with the future growth. As there is a Hot trend in gaming and with outstanding YoY growth could be worth much much more.
4. $1.9B is cheap or expensive?
The current price of $KSMT (“GDEV”) is $10.15 which represents a $1.9B valuation. Before the deal is completed the price cannot be valued less than $10 due to SPAC rules. So there is simply no downside risk at this point.. But can it go up? What is fair valuation? Is there a risk of a selloff from shareholders? How rich the valuation can be in terms of P/E (Price to Sales ratio)? First, let's find out the risk of insider selling: Here is the sec report: https://www.sec.gov/Archives/edgadata/1814824/000121390021005589/ea134294ex99-1_kismet.htm The Transaction is expected to deliver up to $150 million in cash to the Company’s balance sheet before advisor fees and/or redemptions by Kismet Acquisition One Corp. current shareholders, with proceeds expected to be used for general working capital purposes and potential acquisitions. Existing shareholders of Nexters will receive a cash payment of up to $150 million pro-rata to their pre-money shareholdings, and will roll approximately 92% of their holdings into the combined company while agreeing to a 12 month lock-up (subject to certain exceptions). In addition, the founders and the management will receive 20.0 million Earn-Out shares over 3 years (with 50% of the Earn-Out released at $13.50 VWAP and 50% released at $17.00 VWAP), also subject to a 12 month lock-up. The Transaction will be funded by approximately $250 million held in trust by Kismet Acquisition One Corp., subject to any redemptions, as well as the additional $50 million investment by the SPAC Sponsor, Kismet Capital Group, via an affiliate. The investors will have a 12-month lock-up on selling + they get benefits on reaching the valuation 35% and 70% higher from the current price. This means that there will be no insider selling in the near term, which is very positive signal. Acquisitions Nexters Global plans to use proceeds in M&A (buying small game development studios with great projects that just don’t have enough cash, expertise, or right developer team) to benefit from its situation in order to launch great games worldwide. https://preview.redd.it/xhypgzqfimg61.png?width=1000&format=png&auto=webp&s=642c03fecbb851984527c46774beb0ecc44eba0a It is a common mistake to assume that great games can be run by small studios or individuals, as in 2020 you need at least a couple of million dollars spent on marketing to understand if the project is worth it, or not. Small developers can’t afford it. On the other side, Nexters can benefit from it really well. If they are successful in that, we could see 10+ new titles in the future. That could diversify its game portfolio, making this company a safe bet for Hedge funds and other market players, driving future growth. “Hero Wars 2” game announcement. Hero Wars is the top-grossing game, which generates most of the revenue. With “Hero Wars 2” announcement the company can benefit a lot.. Usually, game sequels can do very well, as they are easier to promote, finding their “fan base” from the beginning. This could create a new source of income, work as a diversification, launch the new cycle of the revenue stream for many years ahead. Partnership with Playrix founders Here is another thing that I want to focus on: Bukhman brothers acquired a 43% stake in Nexters in 2018 They are founders of “Playrix” - a private mobile game developer company, currently valued at $7B(valued in Q1 2020). Now more likely ~11B as their revenue increased 1.5 times during 2020. Please read these articles in Bloomberg and Forbes first:
Summary from the articles: Cashing out (selling out to Tencent or Activision Blizzard) is not interesting right now. We are growing every year. Game industry multiplicators of public companies were priced wrong . This year has changed it. And this trend will continue as top games can grow for many many years, reengaging users with updates. Playrix is not interested in IPO's at this valuation. They want to wait until the market changes and start pricing gaming companies at different valuations, not the 4-5 year revenues, but maybe more like Tech companies are valued now (P/S 20-30 instead of 4-5)? I can assume that Playrix founders are interested in the long-term success of Nexters Global SPAC-merger in order to change how markets price the gaming companies as they want to bring Playrix to an IPO in the future. They want to wait until the market starts pricing gaming companies at different valuations, not the 4-5 year revenues, but maybe more like Tech companies are valued now (P/S 20-30 instead of 4-5)? So, for the Bukhman brothers who own 43% shares, Nexters Global is a long-term play company. They don’t want/need to cash out. I also think that at some point, Tencent could just buy 20-30% of the company through the open market (buying shares). Why? Because it is common for Tencent to buy a stake in gaming companies that earn a lot of cash and priced at these valuations. https://preview.redd.it/uphpbubcimg61.png?width=804&format=png&auto=webp&s=4f35889049fa9302786bf65d1b83f02a92d71eef
Summary
In my personal opinion, this is a great company with a bright future. Valuation seems reasonable and there is a big upside if any of those happens:
Company starts to actively search for acquisition targets (we will see from press-releases)
Company launches "Hero Wars 2" title
The company beats its own low guidance estimates (which I think the most probable)
Company launches more titles which enter “Top ranks” in AppStore/Google Play store.
Aggressive Tencent/Other major Gaming Holdings buying.
At this exact moment, the fair valuation of the company will move to $3-4 billion dollar. (+100% upside). At this right moment of the time as the price is near $10 there is literally no risk in a pre-merger state, as SPAC can’t go below $10 price by its concept. Disclosure: At the moment of writing this article I do have a position in $KSMT, that is not more than 10% of my entire portfolio. I do not plan to sell at any nearest time in future. Stocks are risk assets and this is not investment advice.
Hi all, Last week I brought you my DD for Greene Concepts, Inc. ($INKW), which shot up +122% the day after I posted. Since then, it has experienced a healthy pullback only to ramp up again to close today around +104% (I hope those of you who decided to invest have been profitable). Just yesterday they announced completion of a $2.875 million funding transaction that will allow the company to continue expansion efforts and the continued expedited growth of the Be Water™ brand. So, great news! Anyway, moving onto MINERCO, Inc. (The Magic Mushroom Company) (NOTE: As always, I encourage you to do your own reading as well and stick with current facts. Do not be misled one way or the other, whether bearish or bullish; simply do your own DD and decide for yourself what you would like to invest in. Additionally, don’t ever invest more than you can afford) Minerco, Inc. Ticker: $MINE Sector(s): **Healthcare (**and Consumer Defensive) Industry: Drug Manufacturers—Specialty & Generic Location: May Pen, Clarendon, Jamaica CEO: Julius Jenge President: Paul Hoonjan (CEO of Lazurus Hollistic, a 3 year old cannabis company based out of Runaway Bay in Jamaica) Website: https://www.minercoinc.com/ Current Price (Closing 2021-02-09): $0.0158 / share +0.0106 (203.85%) ⬆
About the Company
From their website: “Minerco, Inc. (OTC: MINE), is the world’s first publicly traded companyspecializing in growing, research, production and distribution of psilocybin mushrooms and marketing worldwide*. In addition,* Minerco seeks to acquire and invest in CBD operating companies’ extraction, edibles, topical, white label products etc.” In addition to dealing with psychedelics and cannabis… “Though cannabis and psilocybin are legal in some areas, and decriminalized in others, they are still classified as Schedule 1’s federally (USA). This presents a challenge for individuals and merchants accepting debit and credit cards at point of sales.MINE is developing a platform to integrate blockchain with your debit card*. MINE established our own token “SHRU” which is currently on seven blockchain exchanges and are expanding to twelve by the end of the first quarter of 2021.”*
About the Industry
There are 3 markets at play here: 1) Psychedelics, 2) Cannabis, and 3) Fintech (CRYP.TO). These are three of the HOTTEST markets right now (aside from Biotech which has been absolutely booming within the last 3-6 months). Here’s some market research info about each of these areas: PSYCHEDELICS According to a report from Data Bridge Market Research, cited in the link below, the psychedelics drug market: · “…is growing with a CAGR (Compound Annual Growth Rate) of 16.3% in the forecast period of 2020 to 2027 andexpected to reach USD 6,859.95 million by 2027*, from USD 2,077.90 million in 2019."* · “… psychedelic drugs are used to enhance or change sensory perceptions, energy levels, thought processes, and to facilitate spiritual experiences…These drugs are used in the treatment of major depressive disorder, treatment-resistant depression, panic disorder, post-traumatic stress disorder, and opiate addiction among others.” · “Psychedelic drugs market has increased with increased number of psychedelic drugs as compared to the past few years andincreasing prevalence of depression and mental disorders in the U.S*”* · “Growing acceptance of psychedelic drugs for treating depression isalso increasing market value as the psychedelic drugs has repetitively proven its high rates of effectiveness for treatmentfor nicotine dependence, alcohol dependence, anxiety associated terminal illness and chronic PTSD as compared to other antidepressants” Source: https://www.prnewswire.com/news-releases/psychedelic-drugs-market-projected-to-reach-6-859-95-million-by-2027--301069861.html CANNABIS According to a report from Grand View Research: · “The global legal marijuana market is valued at USD 17.7 billion in 2019 and is expected toexpand at a significant CAGR of 18.1% over the forecast period (2020-2027)” · “Therise in the legalization of marijuana in various countries is one of the key factors driving market growth” · “Medical marijuana isused for the treatment of chronic conditions, such as cancer, arthritis, and neurological conditions, such as anxiety, depression, epilepsy, and Parkinson’s, and Alzheimer’s disease*. Such a wide scope of application is anticipated to bode well for the product demand.*” · “The legal marijuana business is creating jobs and opportunities with around 9,397 licenses in the U.S., including cultivators, manufacturers, dispensaries, and deliverers and labs. Owing to these factors, the legalization of cannabis has led to an increase in its demand in these countries and eventually eroding the black market.” · “Through the legalization of recreational cannabis, governments are trying to eradicate the black market andfocusing on gaining a substantial amount of tax revenues levied on the sale of these products” · “As the number of countries legalizing medical cannabis and its applications is increasing,the market is expected to witness robust growth in the forthcoming years*.”* Source: https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market CRYP.TO According to Fortune Business Insights: · “In 2019, the global market was USD 754.0 Mn, and it isanticipated to reach USD 1,758.0 Mn by 2027*, reflecting a* CAGR of 11.2%during the forecast period from 2020 to 2027.” · “Thepopularity of virtual or digital currency such as Bitcoins, Litecoins, Ethers, and many more are expected to drive the market in the forthcoming years.” · “Financial disaster is a major issue occurring in traditional banking and the financial sector. Financial uncertainty disturbs the economy by dropping the value of the currency. With Bitcoins or other cryp.tocurrencies, there is no major effect of the financial crisis on it as its value is balanced universally.Cryp.tocurrencies are better options in financial uncertainty for the regions with unstable economical structure, which is becoming a major market driving factor for the market.” Source: https://www.fortunebusinessinsights.com/industry-reports/cryptocurrency-market-100149 Most of us are aware of why and how big these markets are, but it is worth mentioning with relation to Minerco’s strategy here.
Financials
Based on what I could find, they are in the development phase and will begin production this year. In terms of profitability, it naturally follows that they are not at breakeven yet. The business model is mainly B2B (and some C) with an exit strategy being that “a major market-player demonstrates strong interest in buying the company”. In my opinion, this would most likely be exercised once they have generated revenue and proven to be profitable for several quarters / years. Minerco, Inc. ($MINE) had hired EQUIDAM SOFTWARE last month to create a business valuation. This information comes from a press release plus the generated valuation document. EQUIDAM can either be used by an individual to generate the financial projections, or you can tap into their dedicated team of financial analysts (who have to be HIRED). Based on the verbiage they used stating that they “hired” EQUIDAM, I assume the information is vetted to a certain extent. I can only have faith here and take their word for it. Using EQUIDAM, they created a “business valuation using 3 methods: IPEV (International Private Equity Valuation), DCF (Discounted Cash Flow) with LTG (Long Term Growth) and DCF with multiples model including the TV (Terminal Value) method. Minerco's Valuation report list IPEV at $297M, LTG AT $193M and DCF TV AT $1B”. Yes, 1 BILLION. Now, I’m not sure how I feel about HOW such a generous pre-money valuation was calculated…oh well I’ll assume it’s correct. Either way it hasn't affected my sentiment toward investing. If we looked at the current number of outstanding shares (13.04 billion) and multiplied by the current share price ($0.0158) we get a market cap of $206 million, so there’s still some room to grow per this valuation. Moving on. Projections of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): 01/2021 – 12/2021 $11,480,000 01/2022 – 12/2022 $62,168,000 01/2023 – 12/2023 $175,900,000 Sources: https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf https://www.newsfilecorp.com/release/72287/Minerco-Inc.-the-Magic-Mushroom-Company-Receives-1B-Valuation-PreMoney-Business-Valuation-from-EQUIDAM https://www.otcmarkets.com/stock/MINE/security
Pre-December 2019 (Old Company(s))
These may have been the old versions of Minerco that many of the investment and Reddit OGs remember. Different company(s). The one(s) that many remember as a P&D. This was a beverage company that operated via the same ticker $MINE, but is distinct and SEPARATE FROM TODAY’S Minerco, Inc. We all know that Tickers can change ownership so that’s fine. Here’s the old company’s blurb: “Minerco Resources, Inc., through its subsidiary Athena Brands, Inc. (Athena), is engaged in beverage business. Athena is a specialty beverage company, which develops, produces, markets and distributes a diversified portfolio of good-for-you consumer brands. Its brands include VitaminFIZZ, Vitamin Creamer, COFFEE BOOST and The Herbal Collection. Athena also owns a majority interest in Avanzar, a sales and distribution company located in Brea, California” Athena Brands seems to be inactive according to its FB: https://www.facebook.com/AthenaBrandsInc/ The CEO and Chairman of both Minerco Resources (again, the old company) is/was V. Scott Vanis and at one point Milton Murcia (no info on him). Scott Vanis has an inactive LinkedIn profile (you’re free to look it up), which hasn’t been updated in ages (hence the dates not changing), just like the old Organization page on LinkedIn: https://www.linkedin.com/company/minerco-resources-inc./ Notice this was categorized as an Oil & Energy company. Who knows how many times this ticker ($MINE) has changed hands and was used by different companies. Either way, based on this information and recent activity it is apparent that the new Minerco, Inc. aka TODAY’s company (2020-Present) is a distinct entity operating under the same ticker. Not only is the industry and targeted market different, the CEO and President are different people.
Accomplishments in 2019-2020
From 2019-2020 alone, the following has happened with Minerco, Inc. ($MINE):
December 2019: Company has been acquired by a specialized investment firm, and entered into the psilocybin "Magic Mushrooms" market. The $MINE Ticker is backronym’d to fit the new direction of operations
(Mushrooms InterNational Enterprises, or MINE). https://finance.yahoo.com/news/investment-firm-acquires-minerco-announces-144000669.html 2) January 17, 2020: Completed acquisition of 12-acre parcel of land in Jamaica for relocation and production facility. This will be where they will create and build the largest psilocybin operation in North America, and are expecting it to produce upwards of 10,000 kilos annually for export to licensed countries/states. Jamaica “…does not have any laws labeling magic mushrooms as illicit drugs. In fact, Jamaica is at the forefront in furthering research into the healing powers of magic mushrooms and how they can be safely applied towards medicinal purposes. This, following the launch of the world's first magic mushroom research center, located at the University of the West Indies in Mona, Jamaica.” (Trivia: did you know Jamaica and Brazil are the only 2 countries where Psilocybin is fully legal? They are able to freely export easily without going over US airspace) https://finance.yahoo.com/news/minerco-inc-build-largest-magic-130000749.html 3) October 22, 2020: Announcement that they have developed a Shroom Blockchain token (SHRU, on the ETH platform) for Shroom investment, and to raise additional capital for their Jamaica project. As mentioned earlier, the strategy here was to circumvent the fact that psychedelics are still classified as Schedule 1’s federally (USA), by creating an alternate avenue for sales. This will allow dispensaries to accept Debit Card purchases for psilocybin (and cannabis) even though it is federally illegal. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-creates-blockchain-token-shru-for-shroom-investment 4) December 14, 2020: Minerco’s SHRU token gets approval to launch on 7 Blockchain exchanges: Bitcratic, ForkDelta, EtherDelta, Bamboolay, SwitchDex, SaturnDex, and McAfee. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-company-token-shru-gets-approval-on-7-blockchain 5) December 17, 2020: Cleaned up $MINE financials (ongoing, due to previous owners) and OTC listing. Retained SEC registered Crowd Fund platform for capital raise. “Upon raising funds, MINE has 4 key strategies targeted with funds. a) Acquire andRetire Toxic Debt to create a stronger and stable balance sheet*.* b)Acquire equipment needed to produce 1m psilocybin tablets daily to be sold to wholesalepurchasers in Oregon, Vermont, domestically and Jamaica, Amsterdam, Canada globally. c)Establish cash collateral reserves for MINE'S blockchain gateway and token SHRU*. This cash collateral will spring board SHRU token onto the top Exchanges worldwide.* d)Acquire and renovate properties for Production and lease in Oregon, Vermont, Jamaica*.”* https://finance.yahoo.com/news/minerco-magic-mushroom-launch-5m-103000065.html 6) December 20, 2020: Minerco, Inc. and Anything Technologies Media host the world’s first “Shroom Zoom” (meet and greet with company + viewing and discussion of CNN’s “Psychedelic Healing” special) https://www.bloomberg.com/press-releases/2020-12-18/minerco-inc-and-anything-technologies-media-host-the-world-s-first-shroom-zoom-cnn-viewing 7) December 21, 2020: Minerco, Inc. the Magic Mushroom Company Gains Acceptance in Psychedelic Invest Index made up of 20 companies listed (Nasdaq, AQL, CNX, and OTC are exchanges representing the collectives in the industry) https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-221200790.html https://psychedelicinvest.com/index/ 8) December 28, 2020 (originally reported): EQUIDAM Software hired for Pre-Money Business Valuation https://ca.finance.yahoo.com/news/minerco-inc-magic-mushroom-company-130600738.html https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf
News in 2021
After a relatively busy 2020 with planning and implementing a strategy in the middle of a global pandemic, Minerco’s news streak continues in 2021 as follows:
January 4, 2021: Minerco, Inc. signs a joint venture letter of intent (LOI) with Jamaican Firm Lazurus Holistic (CEO Paul Hoonjan) to grow, process, and extract psilocybin and cannabis for export to Canada and Europe
These plans are as stated by Paul Hoonjan himself during the January 24th 2021 Shareholder summit, which he is confident will be met:
Start February 2021: Begin Capital Raise of $5M
Start February 2021: Pilot Production of psilocybin and cannabis once they finalize partnership between Minerco, Inc. and Lazurus (in February 2021) in the form of a SPV or SPAC
Complete by April 2021: Payment Gateway available for SHRU on Apple and Android
Complete by May 2021: Finish Capital Raise of $5M
Complete by July 2021: Jamaica Expansion / US Office. Also will begin producing their microdose tablets (microdots) during this month, from the raw products produced from February 2021. Paul is cited as saying that they can produce 4,480 microdots for every pound of mushroom. This amounts to an approximate $21,000 of revenue per pound of mushroom
Start August 2021: GENERATE REVENUE
Source (I recommend starting at 57:15 for Paul’s segment, and if you wish to skip over what some consider the “airy-fairy” side of being into psychedelics i.e. meditation, visions boards etc.): https://www.pscp.tv/w/1vOxwERPzAgGB
Minerco, Inc. is venturing into an industry that has a few small key players (think NUMI, TRIP, MMED etc). With respect to psychedelics specifically, the “Shroom Boom” has just gotten started after an exciting 2H 2020. I am optimistic of their growth in this area based on their location (strategically placed in a legalized Jamaica), and impressed by the idea of leveraging cryp.to to circumvent any purchase barriers that some businesses or customers could have in their country. Whoever is taking care of their PR and timing the releases, has been doing an excellent job. Everything has been timed so well to keep bumping the stock up, which has increased over 900% in the last 1.5 weeks alone (though it was somewhat steadily hovering between 0.0015-0.002 for some time). I’m expecting a healthy pullback soon (no guarantee), which I would plan on holding through anyway. As far as I am concerned, this is the ground floor for this company and as long as they keep up the steady growth, they have the potential to be a pretty decent contender in the market. Note that I am not considering fundamentals since they are pre-money. What I’ve observed in my time investing, is that the market has become so detached from fundamentals that big institutions themselves are coming around to “market sentiment” being a bigger factor than fundamentals alone (think TESLA crushing valuations and absolutely MOONING above all expectations through 2020). Of course this applies to some securities more than others. My feeling is that Paul Hoonjan comes across as a competent President that can steer this company in the right direction. What I love most, as “airy” as they can be in the first 20-30 minutes, are the opportunities to join Zoom calls with the company. That is face-time with shareholders that many companies don’t bother to have. For me, that is valuable since I want to know who I am dealing with. When we invest, we either invest in the product, the people, or both. Paul seems very confident that they can meet all their goals this year, and as a shareholder that brings me relief and a sense of excitement for what is outlined and on the horizon for 2021 (and beyond). I am not only investing in my conviction that psychedelics, cannabis, and cryp.to will continue to grow, but also in the Minerco, Inc. team. Two things I’d like to address before I wrap this up. There was one Reddit user in particular that was on a rampage to tear this company and call it a scam on a recent post, without any evidence. I could’ve sworn I saw this user post 10 times in the same thread. There wasn’t any evidence to point to their claims, other than perhaps the practices of the OLD COMPANY BEFORE ACQUISITION. It also didn’t help that they were very upset about investing $10… Earlier today, I had a back and forth with another Reddit user who was also making accusations against the company. In my post I posted a screenshot of the shareholder call slides, which lead to them accusing me of misleading others. How can I mislead someone by literally reposting news? This user stated that Minerco, Inc. lied about partnering with Mydecine in a press release, and proceeded to call them a scam company. I scoured for references online and realized that they were most likely referring to the following article related to the partnership between Minerco, Inc. and Lazurus (which is very real and verified by the presence of Paul Hoonjan): https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-120600586.html In it, Mydecine is cited once in PASSING “Lazurus Holisitic, an expert in mycelium, recently completed their first export of Psilocybin mushrooms to Mydecine Innovations Group Inc. in Canada”. To me, it is easy to understand that they are not alluding to any partnership or transaction between Mydecine and Minerco, Inc. (said user realized their mistake in mis-reading, and deleted their earlier comments to me) All of that to say, please consider being responsible with the information you put out there. Everything I’ve outlined above (aside from my thoughts) is public information and available online. I’ve simply compiled it so it’s easier to digest; should you go looking for it online, it is easily accessible to you. Ultimately, you decide what you want to do with the information. However I ask that for any stock, you don’t make accusations or assertions (positive or negative) that are not backed by facts. It’s just as bad to fan euphoria with no facts aside from posting “OMG THIS IS HITTING $1 TOMORROW BETTER BUY NOW STUPID BEARS!” on a forum. You not only hurt the company in the process, but you also hurt fellow shareholders. Of course, this is not financial advice and I am no professional. Ultimately, it is up to you what you would like to invest in. Always invest responsibly and if you decide to do so, ensure that you aren’t taking on greater debt. Always make your own informed decisions. Hopefully this DD has at least provided you with some clarity and a wealth of information regarding Minerco, Inc. ($MINE) GLTA; I wish that your families are well in this time and your (net) trades forever remain profitable. My current position 1,000,000 shares @ $0.002. For me, this is a BUY AND HOLD
Hi all, Last week I brought you my DD for Greene Concepts, Inc. ($INKW), which shot up +122% the day after I posted. Since then, it has experienced a healthy pullback only to ramp up again to close today around +104% (I hope those of you who decided to invest have been profitable). Just yesterday they announced completion of a $2.875 million funding transaction that will allow the company to continue expansion efforts and the continued expedited growth of the Be Water™ brand. So, great news! Anyway, moving onto MINERCO, Inc. (The Magic Mushroom Company) (NOTE: As always, I encourage you to do your own reading as well and stick with current facts. Do not be misled one way or the other, whether bearish or bullish; simply do your own DD and decide for yourself what you would like to invest in. Additionally, don’t ever invest more than you can afford) Minerco, Inc. Ticker: $MINE Sector(s): **Healthcare (**and Consumer Defensive) Industry: Drug Manufacturers—Specialty & Generic Location: May Pen, Clarendon, Jamaica CEO: Julius Jenge President: Paul Hoonjan (CEO of Lazurus Hollistic, a 3 year old cannabis company based out of Runaway Bay in Jamaica) Website: https://www.minercoinc.com/ Current Price (Closing 2021-02-09): $0.0158 / share +0.0106 (203.85%) ⬆
About the Company
From their website: “Minerco, Inc. (OTC: MINE), is the world’s first publicly traded companyspecializing in growing, research, production and distribution of psilocybin mushrooms and marketing worldwide*. In addition,* Minerco seeks to acquire and invest in CBD operating companies’ extraction, edibles, topical, white label products etc.” In addition to dealing with psychedelics and cannabis… “Though cannabis and psilocybin are legal in some areas, and decriminalized in others, they are still classified as Schedule 1’s federally (USA). This presents a challenge for individuals and merchants accepting debit and credit cards at point of sales.MINE is developing a platform to integrate blockchain with your debit card*. MINE established our own token “SHRU” which is currently on seven blockchain exchanges and are expanding to twelve by the end of the first quarter of 2021.”*
About the Industry
There are 3 markets at play here: 1) Psychedelics, 2) Cannabis, and 3) Fintech (CRYP.TO). These are three of the HOTTEST markets right now (aside from Biotech which has been absolutely booming within the last 3-6 months). Here’s some market research info about each of these areas: PSYCHEDELICS According to a report from Data Bridge Market Research, cited in the link below, the psychedelics drug market: · “…is growing with a CAGR (Compound Annual Growth Rate) of 16.3% in the forecast period of 2020 to 2027 andexpected to reach USD 6,859.95 million by 2027*, from USD 2,077.90 million in 2019."* · “… psychedelic drugs are used to enhance or change sensory perceptions, energy levels, thought processes, and to facilitate spiritual experiences…These drugs are used in the treatment of major depressive disorder, treatment-resistant depression, panic disorder, post-traumatic stress disorder, and opiate addiction among others.” · “Psychedelic drugs market has increased with increased number of psychedelic drugs as compared to the past few years andincreasing prevalence of depression and mental disorders in the U.S*”* · “Growing acceptance of psychedelic drugs for treating depression isalso increasing market value as the psychedelic drugs has repetitively proven its high rates of effectiveness for treatmentfor nicotine dependence, alcohol dependence, anxiety associated terminal illness and chronic PTSD as compared to other antidepressants” Source: https://www.prnewswire.com/news-releases/psychedelic-drugs-market-projected-to-reach-6-859-95-million-by-2027--301069861.html CANNABIS According to a report from Grand View Research: · “The global legal marijuana market is valued at USD 17.7 billion in 2019 and is expected toexpand at a significant CAGR of 18.1% over the forecast period (2020-2027)” · “Therise in the legalization of marijuana in various countries is one of the key factors driving market growth” · “Medical marijuana isused for the treatment of chronic conditions, such as cancer, arthritis, and neurological conditions, such as anxiety, depression, epilepsy, and Parkinson’s, and Alzheimer’s disease*. Such a wide scope of application is anticipated to bode well for the product demand.*” · “The legal marijuana business is creating jobs and opportunities with around 9,397 licenses in the U.S., including cultivators, manufacturers, dispensaries, and deliverers and labs. Owing to these factors, the legalization of cannabis has led to an increase in its demand in these countries and eventually eroding the black market.” · “Through the legalization of recreational cannabis, governments are trying to eradicate the black market andfocusing on gaining a substantial amount of tax revenues levied on the sale of these products” · “As the number of countries legalizing medical cannabis and its applications is increasing,the market is expected to witness robust growth in the forthcoming years*.”* Source: https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market CRYP.TO According to Fortune Business Insights: · “In 2019, the global market was USD 754.0 Mn, and it isanticipated to reach USD 1,758.0 Mn by 2027*, reflecting a* CAGR of 11.2%during the forecast period from 2020 to 2027.” · “Thepopularity of virtual or digital currency such as Bitcoins, Litecoins, Ethers, and many more are expected to drive the market in the forthcoming years.” · “Financial disaster is a major issue occurring in traditional banking and the financial sector. Financial uncertainty disturbs the economy by dropping the value of the currency. With Bitcoins or other cryp.tocurrencies, there is no major effect of the financial crisis on it as its value is balanced universally.Cryp.tocurrencies are better options in financial uncertainty for the regions with unstable economical structure, which is becoming a major market driving factor for the market.” Source: https://www.fortunebusinessinsights.com/industry-reports/cryptocurrency-market-100149 Most of us are aware of why and how big these markets are, but it is worth mentioning with relation to Minerco’s strategy here.
Financials
Based on what I could find, they are in the development phase and will begin production this year. In terms of profitability, it naturally follows that they are not at breakeven yet. The business model is mainly B2B (and some C) with an exit strategy being that “a major market-player demonstrates strong interest in buying the company”. In my opinion, this would most likely be exercised once they have generated revenue and proven to be profitable for several quarters / years. Minerco, Inc. ($MINE) had hired EQUIDAM SOFTWARE last month to create a business valuation. This information comes from a press release plus the generated valuation document. EQUIDAM can either be used by an individual to generate the financial projections, or you can tap into their dedicated team of financial analysts (who have to be HIRED). Based on the verbiage they used stating that they “hired” EQUIDAM, I assume the information is vetted to a certain extent. I can only have faith here and take their word for it. Using EQUIDAM, they created a “business valuation using 3 methods: IPEV (International Private Equity Valuation), DCF (Discounted Cash Flow) with LTG (Long Term Growth) and DCF with multiples model including the TV (Terminal Value) method. Minerco's Valuation report list IPEV at $297M, LTG AT $193M and DCF TV AT $1B”. Yes, 1 BILLION. Now, I’m not sure how I feel about HOW such a generous pre-money valuation was calculated…oh well I’ll assume it’s correct. Either way it hasn't affected my sentiment toward investing. If we looked at the current number of outstanding shares (13.04 billion) and multiplied by the current share price ($0.0158) we get a market cap of $206 million, so there’s still some room to grow per this valuation. Moving on. Projections of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): 01/2021 – 12/2021 $11,480,000 01/2022 – 12/2022 $62,168,000 01/2023 – 12/2023 $175,900,000 Sources: https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf https://www.newsfilecorp.com/release/72287/Minerco-Inc.-the-Magic-Mushroom-Company-Receives-1B-Valuation-PreMoney-Business-Valuation-from-EQUIDAM https://www.otcmarkets.com/stock/MINE/security
Pre-December 2019 (Old Company(s))
These may have been the old versions of Minerco that many of the investment and Reddit OGs remember. Different company(s). The one(s) that many remember as a P&D. This was a beverage company that operated via the same ticker $MINE, but is distinct and SEPARATE FROM TODAY’S Minerco, Inc. We all know that Tickers can change ownership so that’s fine. Here’s the old company’s blurb: “Minerco Resources, Inc., through its subsidiary Athena Brands, Inc. (Athena), is engaged in beverage business. Athena is a specialty beverage company, which develops, produces, markets and distributes a diversified portfolio of good-for-you consumer brands. Its brands include VitaminFIZZ, Vitamin Creamer, COFFEE BOOST and The Herbal Collection. Athena also owns a majority interest in Avanzar, a sales and distribution company located in Brea, California” Athena Brands seems to be inactive according to its FB: https://www.facebook.com/AthenaBrandsInc/ The CEO and Chairman of both Minerco Resources (again, the old company) is/was V. Scott Vanis and at one point Milton Murcia (no info on him). Scott Vanis has an inactive LinkedIn profile (you’re free to look it up), which hasn’t been updated in ages (hence the dates not changing), just like the old Organization page on LinkedIn: https://www.linkedin.com/company/minerco-resources-inc./ Notice this was categorized as an Oil & Energy company. Who knows how many times this ticker ($MINE) has changed hands and was used by different companies. Either way, based on this information and recent activity it is apparent that the new Minerco, Inc. aka TODAY’s company (2020-Present) is a distinct entity operating under the same ticker. Not only is the industry and targeted market different, the CEO and President are different people.
Accomplishments in 2019-2020
From 2019-2020 alone, the following has happened with Minerco, Inc. ($MINE):
December 2019: Company has been acquired by a specialized investment firm, and entered into the psilocybin "Magic Mushrooms" market. The $MINE Ticker is backronym’d to fit the new direction of operations
(Mushrooms InterNational Enterprises, or MINE). https://finance.yahoo.com/news/investment-firm-acquires-minerco-announces-144000669.html 2) January 17, 2020: Completed acquisition of 12-acre parcel of land in Jamaica for relocation and production facility. This will be where they will create and build the largest psilocybin operation in North America, and are expecting it to produce upwards of 10,000 kilos annually for export to licensed countries/states. Jamaica “…does not have any laws labeling magic mushrooms as illicit drugs. In fact, Jamaica is at the forefront in furthering research into the healing powers of magic mushrooms and how they can be safely applied towards medicinal purposes. This, following the launch of the world's first magic mushroom research center, located at the University of the West Indies in Mona, Jamaica.” (Trivia: did you know Jamaica and Brazil are the only 2 countries where Psilocybin is fully legal? They are able to freely export easily without going over US airspace) https://finance.yahoo.com/news/minerco-inc-build-largest-magic-130000749.html 3) October 22, 2020: Announcement that they have developed a Shroom Blockchain token (SHRU, on the ETH platform) for Shroom investment, and to raise additional capital for their Jamaica project. As mentioned earlier, the strategy here was to circumvent the fact that psychedelics are still classified as Schedule 1’s federally (USA), by creating an alternate avenue for sales. This will allow dispensaries to accept Debit Card purchases for psilocybin (and cannabis) even though it is federally illegal. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-creates-blockchain-token-shru-for-shroom-investment 4) December 14, 2020: Minerco’s SHRU token gets approval to launch on 7 Blockchain exchanges: Bitcratic, ForkDelta, EtherDelta, Bamboolay, SwitchDex, SaturnDex, and McAfee. https://www.nasdaq.com/press-release/minerco-inc.-the-magic-mushroom-company-token-shru-gets-approval-on-7-blockchain 5) December 17, 2020: Cleaned up $MINE financials (ongoing, due to previous owners) and OTC listing. Retained SEC registered Crowd Fund platform for capital raise. “Upon raising funds, MINE has 4 key strategies targeted with funds. a) Acquire andRetire Toxic Debt to create a stronger and stable balance sheet*.* b)Acquire equipment needed to produce 1m psilocybin tablets daily to be sold to wholesalepurchasers in Oregon, Vermont, domestically and Jamaica, Amsterdam, Canada globally. c)Establish cash collateral reserves for MINE'S blockchain gateway and token SHRU*. This cash collateral will spring board SHRU token onto the top Exchanges worldwide.* d)Acquire and renovate properties for Production and lease in Oregon, Vermont, Jamaica*.”* https://finance.yahoo.com/news/minerco-magic-mushroom-launch-5m-103000065.html 6) December 20, 2020: Minerco, Inc. and Anything Technologies Media host the world’s first “Shroom Zoom” (meet and greet with company + viewing and discussion of CNN’s “Psychedelic Healing” special) https://www.bloomberg.com/press-releases/2020-12-18/minerco-inc-and-anything-technologies-media-host-the-world-s-first-shroom-zoom-cnn-viewing 7) December 21, 2020: Minerco, Inc. the Magic Mushroom Company Gains Acceptance in Psychedelic Invest Index made up of 20 companies listed (Nasdaq, AQL, CNX, and OTC are exchanges representing the collectives in the industry) https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-221200790.html https://psychedelicinvest.com/index/ 8) December 28, 2020 (originally reported): EQUIDAM Software hired for Pre-Money Business Valuation https://ca.finance.yahoo.com/news/minerco-inc-magic-mushroom-company-130600738.html https://www.minercoinc.com/wp-content/uploads/2021/01/MINERCO-INC.-THE-MAGIC-MUSHROOM-COMPANY.pdf
News in 2021
After a relatively busy 2020 with planning and implementing a strategy in the middle of a global pandemic, Minerco’s news streak continues in 2021 as follows:
January 4, 2021: Minerco, Inc. signs a joint venture letter of intent (LOI) with Jamaican Firm Lazurus Holistic (CEO Paul Hoonjan) to grow, process, and extract psilocybin and cannabis for export to Canada and Europe
These plans are as stated by Paul Hoonjan himself during the January 24th 2021 Shareholder summit, which he is confident will be met:
Start February 2021: Begin Capital Raise of $5M
Start February 2021: Pilot Production of psilocybin and cannabis once they finalize partnership between Minerco, Inc. and Lazurus (in February 2021) in the form of a SPV or SPAC
Complete by April 2021: Payment Gateway available for SHRU on Apple and Android
Complete by May 2021: Finish Capital Raise of $5M
Complete by July 2021: Jamaica Expansion / US Office. Also will begin producing their microdose tablets (microdots) during this month, from the raw products produced from February 2021. Paul is cited as saying that they can produce 4,480 microdots for every pound of mushroom. This amounts to an approximate $21,000 of revenue per pound of mushroom
Start August 2021: GENERATE REVENUE
Source (I recommend starting at 57:15 for Paul’s segment, and if you wish to skip over what some consider the “airy-fairy” side of being into psychedelics i.e. meditation, visions boards etc.): https://www.pscp.tv/w/1vOxwERPzAgGB
Minerco, Inc. is venturing into an industry that has a few small key players (think NUMI, TRIP, MMED etc). With respect to psychedelics specifically, the “Shroom Boom” has just gotten started after an exciting 2H 2020. I am optimistic of their growth in this area based on their location (strategically placed in a legalized Jamaica), and impressed by the idea of leveraging cryp.to to circumvent any purchase barriers that some businesses or customers could have in their country. Whoever is taking care of their PR and timing the releases, has been doing an excellent job. Everything has been timed so well to keep bumping the stock up, which has increased over 900% in the last 1.5 weeks alone (though it was somewhat steadily hovering between 0.0015-0.002 for some time). I’m expecting a healthy pullback soon (no guarantee), which I would plan on holding through anyway. As far as I am concerned, this is the ground floor for this company and as long as they keep up the steady growth, they have the potential to be a pretty decent contender in the market. Note that I am not considering fundamentals since they are pre-money. What I’ve observed in my time investing, is that the market has become so detached from fundamentals that big institutions themselves are coming around to “market sentiment” being a bigger factor than fundamentals alone (think TESLA crushing valuations and absolutely MOONING above all expectations through 2020). Of course this applies to some securities more than others. My feeling is that Paul Hoonjan comes across as a competent President that can steer this company in the right direction. What I love most, as “airy” as they can be in the first 20-30 minutes, are the opportunities to join Zoom calls with the company. That is face-time with shareholders that many companies don’t bother to have. For me, that is valuable since I want to know who I am dealing with. When we invest, we either invest in the product, the people, or both. Paul seems very confident that they can meet all their goals this year, and as a shareholder that brings me relief and a sense of excitement for what is outlined and on the horizon for 2021 (and beyond). I am not only investing in my conviction that psychedelics, cannabis, and cryp.to will continue to grow, but also in the Minerco, Inc. team. Two things I’d like to address before I wrap this up. There was one Reddit user in particular that was on a rampage to tear this company and call it a scam on a recent post, without any evidence. I could’ve sworn I saw this user post 10 times in the same thread. There wasn’t any evidence to point to their claims, other than perhaps the practices of the OLD COMPANY BEFORE ACQUISITION. It also didn’t help that they were very upset about investing $10… Earlier today, I had a back and forth with another Reddit user who was also making accusations against the company. In my post I posted a screenshot of the shareholder call slides, which lead to them accusing me of misleading others. How can I mislead someone by literally reposting news? This user stated that Minerco, Inc. lied about partnering with Mydecine in a press release, and proceeded to call them a scam company. I scoured for references online and realized that they were most likely referring to the following article related to the partnership between Minerco, Inc. and Lazurus (which is very real and verified by the presence of Paul Hoonjan): https://finance.yahoo.com/news/minerco-inc-magic-mushroom-company-120600586.html In it, Mydecine is cited once in PASSING “Lazurus Holisitic, an expert in mycelium, recently completed their first export of Psilocybin mushrooms to Mydecine Innovations Group Inc. in Canada”. To me, it is easy to understand that they are not alluding to any partnership or transaction between Mydecine and Minerco, Inc. (said user realized their mistake in mis-reading, and deleted their earlier comments to me) All of that to say, please consider being responsible with the information you put out there. Everything I’ve outlined above (aside from my thoughts) is public information and available online. I’ve simply compiled it so it’s easier to digest; should you go looking for it online, it is easily accessible to you. Ultimately, you decide what you want to do with the information. However I ask that for any stock, you don’t make accusations or assertions (positive or negative) that are not backed by facts. It’s just as bad to fan euphoria with no facts aside from posting “OMG THIS IS HITTING $1 TOMORROW BETTER BUY NOW STUPID BEARS!” on a forum. You not only hurt the company in the process, but you also hurt fellow shareholders. Of course, this is not financial advice and I am no professional. Ultimately, it is up to you what you would like to invest in. Always invest responsibly and if you decide to do so, ensure that you aren’t taking on greater debt. Always make your own informed decisions. Hopefully this DD has at least provided you with some clarity and a wealth of information regarding Minerco, Inc. ($MINE) GLTA; I wish that your families are well in this time and your (net) trades forever remain profitable. My current position 1,000,000 shares @ $0.002. For me, this is a BUY AND HOLD
Playboy going public: Porn, Gambling, and Cannabis
NEW INFO 5 Results from share redemption are posted. Less than .2% redeemed. Very bullish as investors are showing extreme confidence in the future of PLBY. https://finance.yahoo.com/news/playboy-mountain-crest-acquisition-corp-120000721.html NEW INFO 4 Definitive Agreement to purchase 100% of Lovers brand stores announced 2/1. https://www.streetinsider.com/Corporate+News/Playboy+%28MCAC%29+Confirms+Deal+to+Acquire+Lovers/17892359.html NEW INFO 3 I bought more on the dip today. 5081 total. Price rose AH to $12.38 (2.15%) NEW INFO 2 Here is the full webinar. https://icrinc.zoom.us/rec/play/9GWKdmOYumjWfZuufW3QXpe_FW_g--qeNbg6PnTjTMbnNTgLmCbWjeRFpQga1iPc-elpGap8dnDv8Zww.yD7DjUwuPmapeEdP?continueMode=true&tk=lEYc4F_FkKlgsmCIs6w0gtGHT2kbgVGbUju3cIRBSjk.DQIAAAAV8NK49xZWdldRM2xNSFNQcTBmcE00UzM3bXh3AAAAAAAAAAAAAAAAAAAAAAAAAAAA&uuid=WN_GKWqbHkeSyuWetJmLFkj4g&_x_zm_rtaid=kR45-uuqRE-L65AxLjpbQw.1611967079119.2c054e3d3f8d8e63339273d9175939ed&_x_zm_rhtaid=866 NEW INFO 1 Live merger webinar with PLBY and MCAC on Friday January 29, 2021 at 12:00 NOON EST link below https://mcacquisition.com/investor-relations/press-release-details/2021/Playboy-Enterprises-Inc.-and-Mountain-Crest-Acquisition-Corp-Participate-in-SPACInsider-ICR-Webinar-on-January-29th-at-12pm-ET/default.aspx Playboy going public: Porn, Gambling, and Cannabis !!!WARNING READING AHEAD!!! TL;DR at the end. It will take some time to sort through all the links and read/watch everything, but you should. In the next couple weeks, Mountain Crest Acquisition Corp is taking Playboy public. The existing ticker MCAC will become PLBY. Special purpose acquisition companies have taken private companies public in recent months with great success. I believe this will be no exception. Notably, Playboy is profitable and has skyrocketing revenue going into a transformational growth phase. Porn - First and foremost, let's talk about porn. I know what you guys are thinking. “Porno mags are dead. Why would I want to invest in something like that? I can get porn for free online.” Guess what? You are absolutely right. And that’s exactly why Playboy doesn’t do that anymore. That’s right, they eliminated their print division. And yet they somehow STILL make money from porn that people (see: boomers) pay for on their website through PlayboyTV, Playboy Plus, and iPlayboy. Here’s the thing: Playboy has international, multi-generational name recognition from porn. They have content available in 180 countries. It will be the only publicly traded adult entertainment (porn) company. But that is not where this company is going. It will help support them along the way. You can see every Playboy magazine through iPlayboy if you’re interested. NSFW links below: https://www.playboy.com/ https://www.playboytv.com/ https://www.playboyplus.com/ https://www.iplayboy.com/ Gambling - Some of you might recognize the Playboy brand from gambling trips to places like Las Vegas, Atlantic City, Cancun, London or Macau. They’ve been in the gambling biz for decades through their casinos, clubs, and licensed gaming products. They see the writing on the wall. COVID is accelerating the transition to digital, application based GAMBLING. That’s right. What we are doing on Robinhood with risky options is gambling, and the only reason regulators might give a shit anymore is because we are making too much money. There may be some restrictions put in place, but gambling from your phone on your couch is not going anywhere. More and more states are allowing things like Draftkings, poker, state ‘lottery” apps, hell - even political betting. Michigan and Virginia just ok’d gambling apps. They won’t be the last. This is all from your couch and any 18 year old with a cracked iphone can access it. Wouldn’t it be cool if Playboy was going to do something like that? They’re already working on it. As per CEO Ben Kohn who we will get to later, “...the company’s casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth.” Honestly, I stopped researching Scientific Games' sports betting segment when I saw the word ‘omni-channel’. That told me all I needed to know about it’s success. “Our SG Sports™ platform is an enhanced, omni-channel solution for online, self-service and retail fixed odds sports betting – from soccer to tennis, basketball, football, baseball, hockey, motor sports, racing and more.” https://www.scientificgames.com/ https://www.microgaming.co.uk/ “This latter segment has become increasingly enticing for Playboy, and it said last week that it is considering new tie-ups that could include gaming operators like PointsBet and 888Holdings.” https://calvinayre.com/2020/10/05/business/playboys-gaming-ops-could-get-a-boost-from-spac-purchase/ As per their SEC filing: “Significant consumer engagement and spend with Playboy-branded gaming properties around the world, including with leading partners such as Microgaming, Scientific Games, and Caesar’s Entertainment, steers our investment in digital gaming, sports betting and other digital offerings to further support our commercial strategy to expand consumer spend with minimal marginal cost, and gain consumer data to inform go-to-market plans across categories.” https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tMDAA1 They are expanding into more areas of gaming/gambling, working with international players in the digital gaming/gambling arena, and a Playboy sportsbook is on the horizon. https://www.playboy.com/read/the-pleasure-of-playing-with-yourself-mobile-gaming-in-the-covid-era Cannabis - If you’ve ever read through a Playboy magazine, you know they’ve had a positive relationship with cannabis for many years. As of September 2020, Playboy has made a major shift into the cannabis space. Too good to be true you say? Check their website. Playboy currently sells a range of CBD products. This is a good sign. Federal hemp products, which these most likely are, can be mailed across state lines and most importantly for a company like Playboy, can operate through a traditional banking institution. CBD products are usually the first step towards the cannabis space for large companies. Playboy didn’t make these products themselves meaning they are working with a processor in the cannabis industry. Another good sign for future expansion. What else do they have for sale? Pipes, grinders, ashtrays, rolling trays, joint holders. Hmm. Ok. So it looks like they want to sell some shit. They probably don’t have an active interest in cannabis right? Think again: https://www.forbes.com/sites/javierhasse/2020/09/24/playboy-gets-serious-about-cannabis-law-reform-advocacy-with-new-partnership-grants/?sh=62f044a65cea “Taking yet another step into the cannabis space, Playboy will be announcing later on Thursday (September, 2020) that it is launching a cannabis law reform and advocacy campaign in partnership with National Organization for the Reform of Marijuana Laws (NORML), Last Prisoner Project, Marijuana Policy Project, the Veterans Cannabis Project, and the Eaze Momentum Program.” “According to information procured exclusively, the three-pronged campaign will focus on calling for federal legalization. The program also includes the creation of a mentorship plan, through which the Playboy Foundation will support entrepreneurs from groups that are underrepresented in the industry.” Remember that CEO Kohn from earlier? He wrote this recently: https://medium.com/naked-open-letters-from-playboy/congress-must-pass-the-more-act-c867c35239ae Seems like he really wants weed to be legal? Hmm wonder why? The writing's on the wall my friends. Playboy wants into the cannabis industry, they are making steps towards this end, and we have favorable conditions for legislative progress. Don’t think branding your own cannabis line is profitable or worthwhile? Tell me why these 41 celebrity millionaires and billionaires are dummies. I’ll wait. https://www.celebstoner.com/news/celebstoner-news/2019/07/12/top-celebrity-cannabis-brands/ Confirmation: I hear you. “This all seems pretty speculative. It would be wildly profitable if they pull this shift off. But how do we really know?” Watch this whole video: https://finance.yahoo.com/video/playboy-ceo-telling-story-female-154907068.html Man - this interview just gets my juices flowing. And highlights one of my favorite reasons for this play. They have so many different business avenues from which a catalyst could appear. I think paying attention, holding shares, and options on these staggered announcements over the next year is the way I am going to go about it. "There's definitely been a shift to direct-to-consumer," he (Kohn) said. "About 50 percent of our revenue today is direct-to-consumer, and that will continue to grow going forward.” “Kohn touted Playboy's portfolio of both digital and consumer products, with casino-style gaming, in particular, serving a crucial role under the company's new business model. Playboy also has its sights on the emerging cannabis market, from CBD products to marijuana products geared toward sexual health and pleasure.” "If THC does become legal in the United States, we have developed certain strains to enhance your sex life that we will launch," Kohn said. https://cheddar.com/media/playboy-goes-public-health-gaming-lifestyle-focus Oh? The CEO actually said it? Ok then. “We have developed certain strains…” They’re already working with growers on strains and genetics? Ok. There are several legal cannabis markets for those products right now, international and stateside. I expect Playboy licensed hemp and THC pre-rolls by EOY. Something like this: https://www.etsy.com/listing/842996758/10-playboy-pre-roll-tubes-limited?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=pre+roll+playboy&ref=sr_gallery-1-2&organic_search_click=1 Maintaining cannabis operations can be costly and a regulatory headache. Playboy’s licensing strategy allows them to pick successful, established partners and sidestep traditional barriers to entry. You know what I like about these new markets? They’re expanding. Worldwide. And they are going to be a bigger deal than they already are with or without Playboy. Who thinks weed and gambling are going away? Too many people like that stuff. These are easy markets. And Playboy is early enough to carve out their spot in each. Fuck it, read this too: https://www.forbes.com/sites/jimosman/2020/10/20/playboy-could-be-the-king-of-spacs-here-are-three-picks/?sh=2e13dcaa3e05 Numbers: You want numbers? I got numbers. As per the company’s most recent SEC filing: “For the year ended December 31, 2019, and the nine months ended September 30, 2020, Playboy’s historical consolidated revenue was $78.1 million and $101.3 million, respectively, historical consolidated net income (loss) was $(23.6) million and $(4.8) million, respectively, and Adjusted EBITDA was $13.1 million and $21.8 million, respectively.” “In the nine months ended September 30, 2020, Playboy’s Licensing segment contributed $44.2 million in revenue and $31.1 million in net income.” “In the ninth months ended September 30, 2020, Playboy’s Direct-to-Consumer segment contributed $40.2 million in revenue and net income of $0.1 million.” “In the nine months ended September 30, 2020, Playboy’s Digital Subscriptions and Content segment contributed $15.4 million in revenue and net income of $7.4 million.” They are profitable across all three of their current business segments. “Playboy’s return to the public markets presents a transformed, streamlined and high-growth business. The Company has over $400 million in cash flows contracted through 2029, sexual wellness products available for sale online and in over 10,000 major retail stores in the US, and a growing variety of clothing and branded lifestyle and digital gaming products.” https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF Growth: Playboy has massive growth in China and massive growth potential in India. “In China, where Playboy has spent more than 25 years building its business, our licensees have an enormous footprint of nearly 2,500 brick and mortar stores and 1,000 ecommerce stores selling high quality, Playboy-branded men’s casual wear, shoes/footwear, sleepwear, swimwear, formal suits, leather & non-leather goods, sweaters, active wear, and accessories. We have achieved significant growth in China licensing revenues over the past several years in partnership with strong licensees and high-quality manufacturers, and we are planning for increased growth through updates to our men’s fashion lines and expansion into adjacent categories in men’s skincare and grooming, sexual wellness, and women’s fashion, a category where recent launches have been well received.” The men’s market in China is about the same size as the entire population of the United States and European Union combined. Playboy is a leading brand in this market. They are expanding into the women’s market too. Did you know CBD toothpaste is huge in China? China loves CBD products and has hemp fields that dwarf those in the US. If Playboy expands their CBD line China it will be huge. Did you know the gambling money in Macau absolutely puts Las Vegas to shame? Technically, it's illegal on the mainland, but in reality, there is a lot of gambling going on in China. https://www.forbes.com/sites/javierhasse/2020/10/19/magic-johnson-and-uncle-buds-cbd-brand-enter-china-via-tmall-partnership/?sh=271776ca411e “In India, Playboy today has a presence through select apparel licensees and hospitality establishments. Consumer research suggests significant growth opportunities in the territory with Playboy’s brand and categories of focus.” “Playboy Enterprises has announced the expansion of its global consumer products business into India as part of a partnership with Jay Jay Iconic Brands, a leading fashion and lifestyle Company in India.” “The Indian market today is dominated by consumers under the age of 35, who represent more than 65 percent of the country’s total population and are driving India’s significant online shopping growth. The Playboy brand’s core values of playfulness and exploration resonate strongly with the expressed desires of today’s younger millennial consumers. For us, Playboy was the perfect fit.” “The Playboy international portfolio has been flourishing for more than 25 years in several South Asian markets such as China and Japan. In particular, it has strategically targeted the millennial and gen-Z audiences across categories such as apparel, footwear, home textiles, eyewear and watches.” https://www.licenseglobal.com/industry-news/playboy-expands-global-footprint-india It looks like they gave COVID the heisman in terms of net damage sustained: “Although Playboy has not suffered any material adverse consequences to date from the COVID-19 pandemic, the business has been impacted both negatively and positively. The remote working and stay-at-home orders resulted in the closure of the London Playboy Club and retail stores of Playboy’s licensees, decreasing licensing revenues in the second quarter, as well as causing supply chain disruption and less efficient product development thereby slowing the launch of new products. However, these negative impacts were offset by an increase in Yandy’s direct-to-consumer sales, which have benefited in part from overall increases in online retail sales so far during the pandemic.” Looks like the positives are long term (Yandy acquisition) and the negatives are temporary (stay-at-home orders). https://www.sec.gov/Archives/edgadata/1803914/000110465921006093/tm213766-1_defa14a.htm This speaks to their ability to maintain a financially solvent company throughout the transition phase to the aforementioned areas. They’d say some fancy shit like “expanded business model to encompass four key revenue streams: Sexual Wellness, Style & Apparel, Gaming & Lifestyle, and Beauty & Grooming.” I hear “we’re just biding our time with these trinkets until those dollar dollar bill y’all markets are fully up and running.” But the truth is these existing revenue streams are profitable, scalable, and rapidly expanding Playboy’s e-commerce segment around the world. "Even in the face of COVID this year, we've been able to grow EBITDA over 100 percent and revenue over 68 percent, and I expect that to accelerate going into 2021," he said. “Playboy is accelerating its growth in company-owned and branded consumer products in attractive and expanding markets in which it has a proven history of brand affinity and consumer spend.” Also in the SEC filing, the Time Frame: “As we detailed in the definitive proxy statement, the SPAC stockholder meeting to vote on the transaction has been set for February 9th, and, subject to stockholder approval and satisfaction of the other closing conditions, we expect to complete the merger and begin trading on NASDAQ under ticker PLBY shortly thereafter,” concluded Kohn. The Players: Suhail “The Whale” Rizvi (HMFIC), Ben “The Bridge” Kohn (CEO), “lil” Suying Liu & “Big” Dong Liu (Young-gun China gang). I encourage you to look these folks up. The real OG here is Suhail Rizvi. He’s from India originally and Chairman of the Board for the new PLBY company. He was an early investor in Twitter, Square, Facebook and others. His firm, Rizvi Traverse, currently invests in Instacart, Pinterest, Snapchat, Playboy, and SpaceX. Maybe you’ve heard of them. “Rizvi, who owns a sprawling three-home compound in Greenwich, Connecticut, and a 1.65-acre estate in Palm Beach, Florida, near Bill Gates and Michael Bloomberg, moved to Iowa Falls when he was five. His father was a professor of psychology at Iowa. Along with his older brother Ashraf, a hedge fund manager, Rizvi graduated from Wharton business school.” “Suhail Rizvi: the 47-year-old 'unsocial' social media baron: When Twitter goes public in the coming weeks (2013), one of the biggest winners will be a 47-year-old financier who guards his secrecy so zealously that he employs a person to take down his Wikipedia entry and scrub his photos from the internet. In IPO, Twitter seeks to be 'anti-FB'” “Prince Alwaleed bin Talal of Saudi Arabia looks like a big Twitter winner. So do the moneyed clients of Jamie Dimon. But as you’ve-got-to-be-joking wealth washed over Twitter on Thursday — a company that didn’t exist eight years ago was worth $31.7 billion after its first day on the stock market — the non-boldface name of the moment is Suhail R. Rizvi. Mr. Rizvi, 47, runs a private investment company that is the largest outside investor in Twitter with a 15.6 percent stake worth $3.8 billion at the end of trading on Thursday (November, 2013). Using a web of connections in the tech industry and in finance, as well as a hearty dose of good timing, he brought many prominent names in at the ground floor, including the Saudi prince and some of JPMorgan’s wealthiest clients.” https://www.nytimes.com/2013/11/08/technology/at-twitter-working-behind-the-scenes-toward-a-billion-dollar-payday.html Y’all like that Arab money? How about a dude that can call up Saudi Princes and convince them to spend? Funniest shit about I read about him: “Rizvi was able to buy only $100 million in Facebook shortly before its IPO, thus limiting his returns, according to people with knowledge of the matter.” Poor guy :( He should be fine with the 16 million PLBY shares he's going to have though :) Shuhail also has experience in the entertainment industry. He’s invested in companies like SESAC, ICM, and Summit Entertainment. He’s got Hollywood connections to blast this stuff post-merger. And he’s at least partially responsible for that whole Twilight thing. I’m team Edward btw. I really like what Suhail has done so far. He’s lurked in the shadows while Kohn is consolidating the company, trimming the fat, making Playboy profitable, and aiming the ship at modern growing markets. https://www.reuters.com/article/us-twitter-ipo-rizvi-insight/insight-little-known-hollywood-investor-poised-to-score-with-twitter-ipo-idUSBRE9920VW20131003 Ben “The Bridge” Kohn is an interesting guy. He’s the connection between Rizvi Traverse and Playboy. He’s both CEO of Playboy and was previously Managing Partner at Rizvi Traverse. Ben seems to be the voice of the Playboy-Rizvi partnership, which makes sense with Suhail’s privacy concerns. Kohn said this: “Today is a very big day for all of us at Playboy and for all our partners globally. I stepped into the CEO role at Playboy in 2017 because I saw the biggest opportunity of my career. Playboy is a brand and platform that could not be replicated today. It has massive global reach, with more than $3B of global consumer spend and products sold in over 180 countries. Our mission – to create a culture where all people can pursue pleasure – is rooted in our 67-year history and creates a clear focus for our business and role we play in people’s lives, providing them with the products, services and experiences that create a lifestyle of pleasure. We are taking this step into the public markets because the committed capital will enable us to accelerate our product development and go-to-market strategies and to more rapidly build our direct to consumer capabilities,” said Ben Kohn, CEO of Playboy. “Playboy today is a highly profitable commerce business with a total addressable market projected in the trillions of dollars,” Mr. Kohn continued, “We are actively selling into the Sexual Wellness consumer category, projected to be approximately $400 billion in size by 2024, where our recently launched intimacy products have rolled out to more than 10,000 stores at major US retailers in the United States. Combined with our owned & operated ecommerce Sexual Wellness initiatives, the category will contribute more than 40% of our revenue this year. In our Apparel and Beauty categories, our collaborations with high-end fashion brands including Missguided and PacSun are projected to achieve over $50M in retail sales across the US and UK this year, our leading men’s apparel lines in China expanded to nearly 2500 brick and mortar stores and almost 1000 digital stores, and our new men’s and women’s fragrance line recently launched in Europe. In Gaming, our casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth. Our product strategy is informed by years of consumer data as we actively expand from a purely licensing model into owning and operating key high-growth product lines focused on driving profitability and consumer lifetime value. We are thrilled about the future of Playboy. Our foundation has been set to drive further growth and margin, and with the committed capital from this transaction and our more than $180M in NOLs, we will take advantage of the opportunity in front of us, building to our goal of $100M of adjusted EBITDA in 2025.” https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company Also, according to their Form 4s, “Big” Dong Liu and “lil” Suying Liu just loaded up with shares last week. These guys are brothers and seem like the Chinese market connection. They are only 32 & 35 years old. I don’t even know what that means, but it's provocative. https://www.secform4.com/insider-trading/1832415.htm https://finance.yahoo.com/news/mountain-crest-acquisition-corp-ii-002600994.html Y’all like that China money? “Mr. Liu has been the Chief Financial Officer of Dongguan Zhishang Photoelectric Technology Co., Ltd., a regional designer, manufacturer and distributor of LED lights serving commercial customers throughout Southern China since November 2016, at which time he led a syndicate of investments into the firm. Mr. Liu has since overseen the financials of Dongguan Zhishang as well as provided strategic guidance to its board of directors, advising on operational efficiency and cash flow performance. From March 2010 to October 2016, Mr. Liu was the Head of Finance at Feidiao Electrical Group Co., Ltd., a leading Chinese manufacturer of electrical outlets headquartered in Shanghai and with businesses in the greater China region as well as Europe.” Dr. Suying Liu, Chairman and Chief Executive Officer of Mountain Crest Acquisition Corp., commented, “Playboy is a unique and compelling investment opportunity, with one of the world’s largest and most recognized brands, its proven consumer affinity and spend, and its enormous future growth potential in its four product segments and new and existing geographic regions. I am thrilled to be partnering with Ben and his exceptional team to bring his vision to fruition.” https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company These guys are good. They have a proven track record of success across multiple industries. Connections and money run deep with all of these guys. I don’t think they’re in the game to lose. I was going to write a couple more paragraphs about why you should have a look at this but really the best thing you can do is read this SEC filing from a couple days ago. It explains the situation in far better detail. Specifically, look to page 137 and read through their strategy. Also, look at their ownership percentages and compensation plans including the stock options and their prices. The financials look great, revenue is up 90% Q3, and it looks like a bright future. https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF I’m hesitant to attach this because his position seems short term, but I’m going to with a warning because he does hit on some good points (two are below his link) and he’s got a sizable position in this thing (500k+ on margin, I think). I don’t know this guy but he did look at the same publicly available info and make roughly the same prediction, albeit without the in depth gambling or cannabis mention. You can also search reddit for ‘MCAC’ and very few relevant results come up and none of them even come close to really looking at this thing. https://docs.google.com/document/d/1gOvAd6lebs452hFlWWbxVjQ3VMsjGBkbJeXRwDwIJfM/edit?usp=sharing “Also, before you people start making claims that Playboy is a “boomer” company, STOP RIGHT THERE. This is not a good argument. Simply put. The only thing that matters is Playboy’s name recognition, not their archaic business model which doesn’t even exist anymore as they have completely repurposed their business.” “Imagine not buying $MCAC at a 400M valuation lol. Streetwear department is worth 1B alone imo.” Considering the ridiculous Chinese growth as a lifestyle brand, he’s not wrong. Current Cultural Significance and Meme Value: A year ago I wouldn’t have included this section but the events from the last several weeks (even going back to tsla) have proven that a company’s ability to meme and/or gain social network popularity can have an effect. Tik-tok, Snapchat, Twitch, Reddit, Youtube, Facebook, Twitter. They all have Playboy stuff on them. Kids in middle and highschool know what Playboy is but will likely never see or touch one of the magazines in person. They’ll have a Playboy hoodie though. Crazy huh? A lot like GME, PLBY would hugely benefit from meme-value stock interest to drive engagement towards their new business model while also building strategic coffers. This interest may not directly and/or significantly move the stock price but can generate significant interest from larger players who will. Bull Case: The year is 2025. Playboy is now the world leader pleasure brand. They began by offering Playboy licensed gaming products, including gambling products, direct to consumers through existing names. By 2022, demand has skyrocketed and Playboy has designed and released their own gambling platforms. In 2025, they are also a leading cannabis brand in the United States and Canada with proprietary strains and products geared towards sexual wellness. Cannabis was legalized in the US in 2023 when President Biden got glaucoma but had success with cannabis treatment. He personally pushes for cannabis legalization as he steps out of office after his first term. Playboy has also grown their brand in China and India to multi-billion per year markets. The stock goes up from 11ish to 100ish and everyone makes big gains buying somewhere along the way. Bear Case: The United States does a complete 180 on marijuana and gambling. President Biden overdoses on marijuana in the Lincoln bedroom when his FDs go tits up and he loses a ton of money in his sports book app after the Fighting Blue Hens narrowly lose the National Championship to Bama. Playboy is unable to expand their cannabis and gambling brands but still does well with their worldwide lifestyle brand. They gain and lose some interest in China and India but the markets are too large to ignore them completely. The stock goes up from 11ish to 13ish and everyone makes 15-20% gains. TL;DR: Successful technology/e-commerce investment firm took over Playboy to turn it into a porn, online gambling/gaming, sports book, cannabis company, worldwide lifestyle brand that promotes sexual wellness, vetern access, women-ownership, minority-ownership, and “pleasure for all”. Does a successful online team reinventing an antiquated physical copy giant sound familiar? No options yet, shares only for now. $11.38 per share at time of writing. My guess? $20 by the end of February. $50 by EOY. This is not financial advice. I am not qualified to give financial advice. I’m just sayin’ I would personally use a Playboy sports book app while smoking a Playboy strain specific joint and it would be cool if they did that. Do your own research. You’d probably want to start here: WARNING - POTENTIALLY NSFW - SEXY MODELS AHEAD - no actual nudity though https://s26.q4cdn.com/895475556/files/doc_presentations/Playboy-Craig-Hallum-Conference-Investor-Presentation-11_17_20-compressed.pdf Or here: https://www.mcacquisition.com/investor-relations/default.aspx Jimmy Chill: “Get into any SPAC at $10 or $11 and you are going to make money.” STL;DR: Buy MCAC. MCAC > PLBY couple weeks. Rocketship. Moon. Position: 5000 shares. I will buy short, medium, and long-dated calls once available.
Meet The Top Young Entrepreneurs Of The Forbes Under 30 2020 List A. wake-up call to cynics who think they have seen it all. The young, creative and bold minds on this year’s 30 Under 30 list Forbes has released its 30 Under 30 in Europe List highlighting young talent Jess Glynne, Daniel Radcliffe and Joe Alwyn are among the entertainers named Progressive London gallery owner Amar To be eligible for 2020 Under 30 List, a nominee must be 29 or younger on December 31, 2019 (Born in 1990 or later). Nominate your candidate for the region in which they are the most prominent. This could be based on the region of incorporation, the majority of sales, residence, etc. Citizenship is not a requirement. The Forbes “30 Under 30” list Class of 2020 is made up 30 honorees for each of the 20 categories – which vary from work in art and style to energy, finance, tech, law and more. They’re all part of last year’s Forbes 30 Under 30 list. Every year, Forbes identifies 30 of the brightest and most promising game-changers under the age of 30, in 20 different industries. That’s 30 leaders x 20 industries = 600 superstars. Wow. The 2020 Forbes 30 Under 30 Europe lists 300 young, visionary leaders reinventing business and society from 62 countries in Europe and around the world. They were chosen from over 1,500 entries. Share on Facebook Share on Twitter. Tags: Forbes’ 30 Under 30 Europe Tran Bao Khanh Chu Hoang Son EIT Community innovators are featured on the prestigious list of young entrepreneurs who shape the future of Europe In all five editions of Forbes' list, the EIT Community was represented by talented entrepreneurs. This year 12 entrepreneurs are on the list, across three categories. Meet The Top Young Entrepreneurs Of The Forbes Under 30 2020 List A. t a time of great global uncertainty, it is hard to see beyond the doom and gloom. According to Forbes's FAQ about the subject, they get "thousands" of applications, for 600 eventual spots (there are 30 people awarded the title in 20 categories). I'm assuming "thousands" means somewhere in the range of 10,000-20,000 tops, otherw... EIT Community shines on Forbes 30 under 30 Europe list In The News 25 Mar 2020 Eight EIT Climate-KIC innovators are featured in the prestigious list of young entrepreneurs shaping the future of Europe.
