Soap Box, page-264

According to the public offering in 2020, Cannatrek has 205mil SOI. Not inclusive of any options that may have been redeemed. Could be up to 220mil if that is the case, and given the 10c and 40c redeem prices, I’d assume they were taken in full.

Market cap at last raise was in that case, 72mil in 2020. When they were operating at a loss of 3.3 mil and revenues of 1.2mil.

Fast forward to 2022, They raise another $13mil (suspect adding at least another 22mil shares to circulation. This would bring SOI to 242mil. Suppose that we value at 60c per share. We’re now seeing a realised value of $145mil, minimum.

They have indicative yearly revenue of $90mil, up from $42 the year prior. As we can see, economies of scale are substantial in the industry. Both ECS and Cannatrek have shown the ability to sustain 100%+ revenue increases YoY. 15 - 30 - 60 - 120mil. 30 months and ECS on the same trajectory would be at the same MC at Cannatrek based purely on revenues.

Making the exceptionally surface level valuation based on current revenues. Cannatrek is 6x ECS in revenues. So at a $145mil valuation of Cannatrek, that puts ECS comparatively at $24.1mil MC… which looks to be exactly where we are at.

I suspect we’ll see Cannatrek lost in the near future, so that investors will be able to capitalise on their investments as well as more readily raise funds to expand. IMO, Cannatrek listing and raising/borrowing could merge/absorb ECS. Seems like they are both on similar trajectories and acquisition of ECS patented strains alongside their VESISorb license could be invaluable going forward.

Great time to be involved in this space, many boing parts and only a matter of time before we kick on. This is the dip.

*addit: 255mil SOI - 153mil MC. ECS relative valuation 25.5mil.