$SIGO There’s a publicly traded cannabis company that’s more diversified than SIGO that is the current long term darling of cannabis traders everywhere. It’s been around awhile and has over 1300 followers compared to our 170+. Just thought it would be interesting to do a comparison of one of the more recognized and established cannabis companies vs Sunset Island Group so here goes…
1. Notice that this company has 645M shares outstanding vs 50M for SIGO. Also notice that there are 556M Tradable Shares vs 4M for SIGO.
2. Now let’s talk market cap…It’s real easy for those that don’t understand SIGO to downplay the company based on market cap because on paper, it’s 69.5M, but that’s due to people not being informed about the 46M shares of the outstanding that are part of a lock up agreement for the next three years, which essentially renders them the same as preferred shares. In fact, it would not surprise me to see the company convert those to preferred at some point to crystalize this point.
3. So if we’re only looking at Tradable Shares, an apples to apples comparison has to include removing the restricted shares from the other company’s total outstanding. When you do so, you get a value of the Tradable Shares of $137.5M for the other company and $5.6M for SIGO, which again would be the true market value if the shares under three year lock up are not included in the mix.
4. So a 137.5M tradable share value for one and $5.6M for the other. Let’s look at projected revenue…based on the latest filing for the one company and projecting out for 12 months, you get $29.3M. Project out SIGO over 12 months based on their first harvest and you get $7.3M in revenue based on the current 22K square feet of grow space.
5. Again, comparing apples to apples, in the next few lines of the spreadsheet, if you’re going to project SIGO out based on their new minimum of 152K square feet, you also have to allow an aggressive possibility for the other company so we bumped it up by a hefty 50% increase. In this scenario, the other company does $44M and SIGO does $30.4M.
6. If you carry that out further and go with their possible 230K square feet and then completely double the projected revenue of the other company, you end up with $58.6M for one and $46M for SIGO.
7. Now maybe this company will double their sales, but they are a diversified behemoth and that’s a heavy lift, but let’s go with it. What makes SIGO seem more likely to move more aggressively with revenue growth is the focus on one business model, one product and one that is easier to ramp up.
8. Either way, being fair to the other company by bumping their revenue projections up 100%, take a look at the revenue generated PER each tradable share. For one it’s 10.5 cents; for SIGO it’s $11.41 per share!!!! Even if you factor in ALL O/S for both companies, you get 9 cents for one and 66 cents for SIGO.
9. One company is growing via convertible debt and has $6M still on the books; the other has ZERO convertible debt.
10. One company pays out what looks to be $683K per year in officer salaries, SIGO pays ZERO in officer salaries and instead pays officers via a monthly dividend that all shareholders receive.
11. One has a reverse split planned, the other…no chance.
I’d like to think that it will dawn on the company at some point that if they’re going to lock up over 90% of all outstanding shares for three years, why not convert them to preferred? Either way, the true O/S for SIGO at this point is 4M shares.
10.5 cents in revenue per tradable share only after you DOUBLE the other company’s revenue vs $11.41 in revenue per tradable share based on SIGO’s high end projection of square footage is enough for me to believe that we have a lot of room to grow in PPS. GLTA UF
