Swiss Industry Ventures, AG White Paper
In February 2020 Swiss Industry Ventures became majority shareholder of CBDD with a plan to develop revenue producing operations in Switzerland. Marcel Gamma, based in Switzerland became CEO of CBD of Denver, Inc. and Nicholas Sprung became president of the Company, continuing to direct US operations.
US operations focused on the Company's Black Pearl CBD e-commerce website and maintaining an office in Centennial, Colorado.
Meanwhile, Swiss Industry Ventures brought its Rockflowr and CBDWelt24 Cannabis / CBD operations under the CBDD umbrella, selling these companies to CBDD in May and June 2020.
When Swiss Industry Ventures first became majority shareholder of CBDD the operational revenue of CBDD was less than $50,000 per year and the market cap was about $800,000. With the acquisition of CBDWelt24 and Rockflowr CBDD's revenue rose to $517,025 for the quarter ended June 30, 2020, more than 10 times its projected annual revenue, even though it was only able to account for a portion of the total $1,893,688 in revenue its new Swiss subsidiaries generated, having acquired them more than halfway through the quarter. For the third quarter ended September 30, 2020, CBDD achieved revenue of $5,963,820 with a gross profit of $484,666. The market capitalization of CBDD is more than $40,000,000 as of December 8, 2020.
Over the past four weeks they have restructured their divisions to integrate all divisions with the same Rockflowr brand name.
Swiss Industry Ventures AG is one of the largest Cannabis importers / producers in Europe that has established an equity platform that brings the opportunity for investors to directly invest into Swiss CBD companies at attractive multiples. Swiss Industry Ventures, AG has the potential to be the largest Cannabis\CBD producer throughout the EU. The stock has traded up 1400 % just within the first week of December, reflecting a strong Qtr. 3 which is evidence for the recognition it is gaining amongst investors. This is largely due to the two acquisitions, Rockflowr Exchange which is the wholesale division and CBD Welt 24, now known as Rockflowr Production, which has two grow facilities.
Industry:
During the last year, the Cannabis\CBD sector has been in the middle of a major transition that has been centered around the expansion into new markets. The European Union (EU) has been a point of emphasis for Cannabis\CBD operators and has proven to be a favorable strategy for CBD growth.
When compared to the Canadian and US cannabis markets, the opportunity in the EU is much less saturated and is at the precipice of a major growth cycle. Currently, the production of cannabis is not allowed in most of Europe therefore, the product is imported from either Canada or the United States which represents the compelling thesis for Swiss Industry Ventures, AG.
Over the next few years, the EU cannabis market is expected to record substantial growth as new markets open and existing markets mature. During this time, there are overwhelming expectations to see additional countries approved to export cannabis to the EU which is optimistic on the potential value that will be created.
Moreover, the legalization ripple effect has had a multiple increase in the consumption of both THC-Tetrahydrocannabinol/CBD-Cannabidiol products, derivatives, thereof. It is legal to grow, produce and sell CBD products. Public support for legalization for both medical and recreational use is at a record level. According to a 2019 study from Pew Research Center, 67% of the populace believes that cannabis should be legal in some form, up from 52% in 2014. The European market is expected to grow $15B 2021.
There's the additional pressure in terms of potentially missing out on recreational cannabis tax revenue that municipalities do not want to lose. Switzerland is the only country able to grow cannabis up to 1% THC-level and is also the only country that you can grow and wash down CBD to sell throughout the European market.
Market Opportunity:
• Swiss Cannabis Industry expected to grow $2.7B 2028
• Cannabis is still in its infancy stages in Switzerland and Europe
• Exclusive Partnerships in the EU
• Strong distribution partnerships
• Swiss Quality Standard and growing Cannabis trend
• Structured M&A platform in place (completed 4 acquisitions 2020 which provided almost $5M Rev. for the first 5 months with a pro forma of $14.5M 2020 and $22M Rev. 2021 with an additional infusion of capital $25M)/ 2 additional projects in advanced planning stage
• Acquisition of new production facility (Indoor grow facility and 1000 m2 production area
• Currently operating 2 Production Facilities
• Import License for Switzerland
• Expansion into EU Completed
• Early Entrant into the Recreational Market
• Experienced and Diverse Management Team
• Growth Model for high-margin products (pollen/isolate/pet products
• Expanding Portfolio of new products & markets
• Looking to become fully audited financial reporting of revenue by Q4
Benefits:
• Medical
• Mental Health Management
• Neurological Disorders Management
• Recreational
Swiss Industry Ventures AG M&A strategy that is currently and successfully executing is to acquire, grow and support Swiss Cannabis companies with trailing revenue of $5M(+). Most Cannabis companies are growing substantially since their founding within the last 3 years which reflects a similar growth pattern of North America. Swiss Industry Ventures AG expects their growth rate to beat the industry average by an overwhelming margin in 2021 with the overall EUROPEAN Market expected to grow by $12-15B 2021 not to mention average industry multiples are approx.12.4x Revenue.
CAP Table:
Pro-Forma Rev. Est. 2020: $15M/Ebitda: $500k
Rev. Est. 2021: $22M/Ebitda: $2.5-3M
Current Price: .017
52 Week Range: .0002-.0328
Market Cap: $70,082,471 as of 12/04/2020
Authorized Shares: 6,000,000,000
Shares Outstanding:4,899,538,107 as of 09/30/2020
Float: 3,957,427,449
Average Volume: 129,758,221
Financial Reporting: Alternative Reporting Standard
Audited Financials: Unaudited
Latest Report: 09/30/2020 Quarterly Report
Fiscal Year End: 12/31
Shell: No
Dividend: N/A
Net Dividend Yield: N/A
Par Value: .001
Short Interest Delta: 117,082,106 as of 06/2020- 8937 as of 11.13.2020 which seems indicative of a recent short-squeeze on the stock.
(Foot-note: Based on average industry multiples and the meteoric rise in valuations and stock price, it is important to note that the short interest of over 117M shares as of 06/2020 and material change in Nov. 2020, is indicative of the incipient upside and sloping curve on OTC:CBDD.)
Target Price: Speculative Buy : .05+/share (based on 12 months revenue of 22 Million)
Associated RISK:
Pandemic's impact on Cannabis:
The coronavirus pandemic had a multi-layered effect on the cannabis market and legalization efforts globally. Cannabis usage "shot up" dramatically when Covid hit during March/April as the outbreak accelerated.
Inherent risks associated with agriculture-based companies, such as competition, bad weather or catastrophic events and Regulatory Oversight may cause negative impact to the industry as a whole. Though its products are grown in greenhouses helps mitigate weather risk/concern.
Considering the value of the stock has traded within the last 52 weeks: .0002-.017 as of 12.4.2020, there is associated risk of profit taking to the recent rapid run-up and historical price changes in the overall market indices in general.
CBD of Denver Inc. is a publicly traded company listed on the OTC under the ticker symbol CBDD. This is not investment advice. Please view the disclaimer found on this website.
