Fortitude Group, Inc. (FRTD)

[stervc]

FRTD/AFFW Additional Value from the Dividend...

Now that we have some more finite variables, we can derive some more finite values to consider based on what has been PR-ed by FRTD below:
http://ih.advfn.com/p.php?pid=nmona&article=61420427

I see that some have interpreted as if AFFW is going to remain a shell with nothing ever going into it. Those thoughts are very incorrect because PRIMARQ is going to be going into AFFW as the new operational entity. Remember this news of PRIMARQ to be generating $570,000,000 in Revenues with EBITDA of $190,000,000 over a 5 year time frame indicated below:

Fortitude Group Inc., (OTC: FRTD) – Primarq Inc. PROJECTED FIFTH YEAR – REVENUES $570MM; EBITDA $190MM; MARKET CAP $5B
http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=961672360

From what I have learned after doing a little further due diligence (DD), I am hearing that the valuation numbers above for PRIMARQ are very conservative. I have also learned that it is fair to consider PRIMARQ to generate a divisible by 5 of the numbers within that previous PRIMARQ PR to derive an at least minimum per year amount for revenue and EBITDA generation. This means that we can conservatively consider the following from the numbers above…

Revenues of $570,000,000 ÷ 5 = $114,000,000 PRIMARQ Revenues Per Year
EBITDA of $190,000,000 ÷ 5 = $38,000,000 PRIMARQ EBITDA Per Year
Market Capital of $5,000,000,000 ÷ 5 = $1,000,000,000 for PRIMARQ Market Cap Per year

When you do more due diligence (DD), you will learn that the per year numbers above for PRIMARQ are very conservative, but I’ll use what we know from the PR above thus far to derive two valuation models for PRIMARQ/AFFW; the Earnings Per Share (EPS) Model and the Market Capital Model.



The Earnings Per Share (EPS) Model

Within this model, we will derive the EPS for AFFW/PRIMARQ given the numbers above about PRIMARQ. In deriving the EPS, we will determine the value of ”1” share of this PRIMARQ/AFFW entity based on the previous mentioned variables above to see if it’s worth buying ”92” shares of FRTD to be awarded the ”1” share of PRIMARQ/AFFW. We will do this by first taking into consideration the $38,000,000 in EBITDA for PRIMARQ per year as derived from the variables above. Per the PR, the 9,250,000 shares represent approximately 14% of the to-be-issued and outstanding stock of AFFW. If you do the math, that equates to an OS of 66,071,429 Shares for AFFW so we can conclude for an EPS for AFFW as indicated below:

$38,000,000 PRIMARQ EBITDA Per Year ÷ 66,071,429 Shares (OS) = .575 EPS

About EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization):
http://www.investopedia.com/terms/e/ebitda-margin.asp
http://www.investopedia.com/terms/e/ebitda.asp
A measurement of a company's operating profitability. It is equal to earnings before interest, tax, depreciation and amortization (EBITDA) divided by total revenue. Because EBITDA excludes depreciation and amortization, EBITDA margin can provide an investor with a cleaner view of a company's core profitability.

Now we must multiply the .575 EPS by a Price to Earnings (P/E) Ratio to determine the price of which this new PRIMARQ entity (AFFW) should trade given the variables above. Let’s use a conservative P/E Ratio of 15…

.575 EPS x 15 P/E Ratio = $8.63 per share

This means that ”1” share of this dividend, based on EBITDA, would be worth… $8.63 Per Share. This is the price that the market would closely value AFFW/PRIMARQ to be worth. Currently, the price of AFFW is $5.00 by $22.00 as can be seen from looking at Level II as also confirmed to be such during such time when the market is open.

So, if you buy 1,000,000 shares of FRTD at .025… you will have $25,000 in FRTD shares.

To determine the amount of PRIMARQ/AFFW shares from owning 1,000,000 shares of FRTD, consider below…

1,000,000 FRTD Shares ÷ 92:1 Ratio = 10,870 PRIMARQ/AFFW Shares

This means that if you buy 1,000,000 shares of FRTD, you will be getting 10,870 shares of the AFFW/PRIMARQ entity. See below to see the worth of those AFFW/PRIMARQ shares.

10,870 PRIMARQ Shares x $8.63 Per Share = $93,808 Added Value from FRTD Shares

So, this means that if you own 1,000,000 shares of FRTD, you will be awarded 10,870 shares of AFFW/PRIMARQ which will be worth $93,808 in additional value.



Let’s consider this from another perspective if you own 10,000,000 shares of FRTD.

10,000,000 FRTD Shares ÷ 92:1 Ratio = 108,700 PRIMARQ/AFFW Shares

This means that if you buy 10,000,000 shares of FRTD, you will be getting approximately (rounded) 108,700 shares of the AFFW/PRIMARQ entity. See below to see the worth of those AFFW/PRIMARQ shares.

108,700 PRIMARQ Shares x $8.63 Per Share = $938,081 Added Value from FRTD Shares

So, this means that if you own 10,000,000 shares of FRTD, you will be awarded 108,700 shares of AFFW/PRIMARQ which will be worth $938,081 in additional value.

This is value awarded to us shareholders as a gift of which was never expected until the announcement last week,



The Market Capital Model

Within this model, we will derive the valuation for AFFW/PRIMARQ based on the Market Capital of $5 Billion over a 5 year time frame for AFFW/PRIMARQ mentioned within the PR below that I also mentioned above:

Fortitude Group Inc., (OTC: FRTD) – Primarq Inc. PROJECTED FIFTH YEAR – REVENUES $570MM; EBITDA $190MM; MARKET CAP $5B
http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=961672360

Over a 5 year time frame, for the reasons I stated above relating to the first valuation model, as I had stated above, it is conservative to consider dividing that number by 5 to get a per year Market Capital (MC) expectation:

$5,000,000,000 MC over 5 years ÷ 5 = $1,000,000,000 MC

We can determine the value of where AFFW/PRIMARQ is expected to trade given the known variables of the Expected MC of $1 Billion Per Year and the OS for AFFW/PRIMARQ as previously indicated. As I had previously mentioned above, the OS for AFFW is 66,071,429 Shares. Since the Market Capital (MC) is equal to the Share Price multiplied by the OS, we can derive the Share Price by dividing the MC by the OS like so below:

$1,000,000,000 MC ÷ 66,071,429 Shares = $15.13 Per Share for AFFW/PRIMARQ

This means that both companies believe and expect that AFFW/PRIMARQ will be worth $15.13 Per Share considering the MC Analysis.

This means that ”1” share of this dividend, based on the MC would be worth… $15.13 Per Share. This is the price that is believed that the market would closely value AFFW/PRIMARQ to be worth based on the Market Capital Analysis consideration.

So, if you buy 1,000,000 shares of FRTD at .025… you will have $25,000 in FRTD shares.

Again, to determine that amount of PRIMARQ/AFFW shares from owning 1,000,000 shares of FRTD, consider below from the ratio that was PR-ed:

1,000,000 FRTD Shares ÷ 92:1 Ratio = 10,870 PRIMARQ/AFFW Shares

This means that if you buy 1,000,000 shares of FRTD, you will be getting 10,870 shares of the AFFW/PRIMARQ entity. See below to see the worth of those AFFW/PRIMARQ shares from this MC consideration.

10,870 PRIMARQ Shares x $15.13 Per Share = $164,463 Added Value from FRTD Shares

So, this means that if you own 1,000,000 shares of FRTD, you will be awarded 10,870 shares of AFFW/PRIMARQ which will be worth $164,463 in additional value.



Let’s consider this from another perspective if you own 10,000,000 shares of FRTD.

10,000,000 FRTD Shares ÷ 92:1 Ratio = 108,700 PRIMARQ/AFFW Shares

This means that if you buy 10,000,000 shares of FRTD, you will be getting ”approximately” (rounded) 108,700 shares of the AFFW/PRIMARQ entity. See below to see the worth of those AFFW/PRIMARQ shares.

108,700 PRIMARQ Shares x $15.13 Per Share = $1,644,631 Added Value from FRTD Shares

So, this means that if you own 10,000,000 shares of FRTD, you will be awarded 108,700 shares of AFFW/PRIMARQ which will be worth $1,644,631 in additional value.

Again, as I think this important to reiterate… This is value awarded to us shareholders as a gift of which was never expected until the announcement last week,



I recommend all to go through the PRIMARQ website, videos, & additional DD to consider below:


http://www.primarq.com/#/home


Fortitude Group Inc., (OTC: FRTD) – Primarq Inc. CEO Steve Cinelli to meet with Bob Pisani of CNBC
http://www.otcmarkets.com/otciq/ajax/showNewsReleaseDocumentById.pdf?id=2053168815

Fortitude Group Inc. (FRTD), Primarq Inc., named by Forbes Magazine as one of the top ten of real-estate crowdfunding firms
http://ih.advfn.com/p.php?pid=nmona&article=58304489



Click on the YouTube links below:

https://www.youtube.com/watch?v=VqHiX2LSK2E


https://www.youtube.com/watch?v=fzSfT0lLJ30




Below is more on PRIMARQ that I believe is important to understand why it is a high and positive profiled company with its upcoming launch…

PRIMARQ is ranked #7 out of the Top 10 by the expert below about their business operations from the Forbes article below:

http://www.forbes.com/sites/groupthink/2013/04/19/crowdfundings-latest-invasion-real-estate/
Crowdfunding's Latest Invasion: Real Estate
The following guest post is by David Drake, founder and chairman of LDJ Capital, a New York City private-equity firm, and of The Soho Loft, a global financial media company with divisions in Conference & Expo, Publishing, and Consulting. Drake has spent 15+ years working with general partners, and with institutional and multi-family office limited partners, in real-estate-focused funds and fund of funds.

7. Primarq– The NASDAQ of residential real-estate equity has developed a platform where investors help consumers buy homes, and home-owners can monetize the value of their homes. It also offers a secondary market where investors can sell their shares without having to sell the actual properties.

PRIMARQ is partners with Bendigo which helped them to already be SEC & FINRA compliant; PRIMARQ is the company that developed the trading platform within the PRIMARQ entity:

http://www.businesswire.com/news/home/20130729005362/en/Fortitude-Group-PRIMARQ-Bendigo-Announce-Strategic-Partnership#.UwjXiY3rz4N
Fortitude Group Inc., PRIMARQ and Bendigo Announce Strategic Partnership

…PRIMARQ Incorporated (www.primarq.com), a private capital market system whose vision is to provide an improved model for housing finance, announces a strategic partnership with Bendigo Securities LLC, d/b/a CrowdClear (www.crowdclear.com). Under this agreement, PRIMARQ and CrowdClear will collaborate on online investment offerings in compliance with regulatory requirements and best practices.

This partnership will enable PRIMARQ to take full advantage of CrowdClear’s acumen in compliance with SEC and FINRA requirements while maintaining its commitment to offering accredited investors an institutional investment product. CrowdClear will allow PRIMARQ’s market system approach to grow in a highly scalable, regulatory-compliant manner.

“As capital markets evolve through the use of technology and new methods of finance, PRIMARQ is excited to partner with the CrowdClear team from Bendigo Partners, which has built its franchise on disruptive approaches to the financial services market,” stated Steve Cinelli, Founder and CEO of PRIMARQ. “While we are on the verge of creating a paradigm shift in housing finance, we clearly understand the needs, resources and requirements necessary for a comprehensive, transparent, and compliant investor experience. With the support of CrowdClear, we intend to set the benchmark for online private investing.”

“In imagining the future of technology-enabled investing, certainly from our roots at E*TRADE, we are thrilled to partner with Steve and his team at PRIMARQ,” stated Steve Ferrando, CIO and co-founder of CrowdClear. “Supporting PRIMARQ’s effort to efficiently intermediate the next generation of real estate financing is a compelling opportunity for us.”

Fortitude CEO Thomas J. Parilla commented “The strategic partnership formed by Primarq and Bendigo puts the final piece of the puzzle together and answers the question asked by shareholders related to the regulatory compliance of Primarq. These two entities are perfectly matched, managed by strong experienced leadership and have a common goal of revolutionizing the way Real Estate is monetized by taking it from its current operation model of a debt industry to an equity industry.”

You can read more about the magnitude of these awesome companies that are providing support to PRIMARQ for their launch and future growth, Bendigo and CrowdClear, from their websites below:

http://www.bendigopartners.com/

http://www.bendigopartners.com/about/
Deep and broad industry experience
• Founded by executives who have successfully led, managed and grown financial services companies for over 25 years.The majority of partners have worked together for more than 20 years
• The team can provide expertise to daily operations and functions of financial services companies and have deep knowledge with regulations, industry standards, partners, pricing and processes necessary to develop and build healthy financial service businesses
• Bendigo Partners maintain a presence in the US, UK, Hong Kong and Japan
• Team has participated in business acquisitions of over $2.5bn and business sales and restructurings generating cash proceeds of over $1bn and P&L gains of over $750mm

http://www.crowdclear.com/


http://www.crowdclear.com/what-is-crowdclear.html




I think it’s important to remind everyone that the thing that made FRTD rise from the ashes was not the PRIMARQ piece. Respectfully, this dividend is new and is greatly appreciated as it added huge value to all FRTD shareholders’ portfolios. Now that I’m here, I’m feeling FRTD even more because of the PRIMARQ dividend although it was the marijuana (MMJ) piece that originally attracted myself and many of us that are here now to FRTD. Some have been here for months or even longer, but most of us newcomers to FRTD was originally attracted because of its MMJ venture. I think it’s worth a rehash of their entry into the MMJ market below:



http://ih.advfn.com/p.php?pid=nmona&article=61170663

Fortitude Group, Inc. (FRTD) Initiates Actions to Enter Medical Marijuana Industry



http://ih.advfn.com/p.php?pid=nmona&article=61192973

Fortitude Group, Inc. (OTC: FRTD) Announces MAA Partnership With EviteXchange.com for the Marijuana Industry

Fortitude Group, Inc. (OTC: FRTD) Announces MAA Partnership With EviteXchange.com for the Marijuana Industry
ERIE, PA--(Marketwired - Feb 24, 2014) - Fortitude Group, Inc. (OTC: FRTD) CEO Thomas J. Parilla is pleased to announce that on February 22, 2014, the Company executed a Master Agent Agreement with eViteXchange.com. Under the terms of the agreement, Fortitude will offer and facilitate closed-loop transaction processing to legal dispensaries in the medical marijuana industry as well as provide processing for entities in states that have legalized recreational marijuana sales.

Fortitude shall acquire from eViteXhange.com the URL's 420banc.com and 420cashcard.com. Both domains will be used as a pre-paid platform allowing legal marijuana merchants customers to process purchase transactions using a debit card vs. cash. The private-label card will offer additional rewards and points to the card holders which can be custom designed to fit their individual likes and needs. Fortitude expects to derive approximately $155.00 annual profit per retail card user. The Company intends to launch on March 17, 2014.

Thomas J. Parilla, CEO of Fortitude, stated, "The market for prepaid products has been growing at a tremendous rate in the U.S. over the past several years. With the recent changes to State laws regarding the purchase and sell of marijuana, we see this as an industry in its infancy. Our merchant products allow a retailer to sell product while staying compliant with State and Local tax laws. Our retail products allow for buyers to purchase cannabis while being able to use the same card at traditional merchants via the Discover card network. Our 420banc.com will be used for merchants and the 420cashcard.com will be used for retail buyers."

http://ih.advfn.com/p.php?pid=nmona&article=61229989

Fortitude Group, Inc. (OTC: FRTD) Announces Stock Repurchase Plan

ERIE, PA--(Marketwired - Feb 26, 2014) - Fortitude Group Inc. (OTC: FRTD) CEO Thomas J. Parilla today announced that its Board of Directors on February 25, 2014 adopted a corporate resolution to authorize a stock repurchase plan pursuant to which Fortitude Group, Inc. may repurchase up to 100,000,000 (100 Million) shares of its common stock.

"Fortitude is committed to maximizing shareholder value. The company's recent entry into the Medical Marijuana sector and the quickly improving financial outlook for Fortitude gives management the opportunity to repurchase common stock. This action will demonstrate our commitment to this goal," Mr. Parilla stated.

The stock repurchase program has a flexible design allowing for repurchases to be made in the open market at prevailing market prices or in privately negotiated transactions if warranted; in accordance with all applicable securities laws and regulations. Ultimately we will achieve our intended goal to make appropriate adjustments to the Company's capital structure, further increasing shareholder value. Repurchasing of stock will be made at the discretion of Fortitude Group, Inc. management according to the programs guidelines.

In addition Mr. Parilla went on to say, "In response to several inquiries received FRTD does not have 504 or any toxic financing in place, and no plans to employ such methods."

http://ih.advfn.com/p.php?pid=nmona&article=61268173

Fortitude Group, Inc. (PINKSHEETS: FRTD) Introduces a Revolutionary Medical Marijuana Product "MariMist"

ERIE, PA--(Marketwired - Feb 28, 2014) - Fortitude (PINKSHEETS: FRTD) CEO Thomas J. Parilla today announces that the company has entered into a joint venture agreement to obtain the USA production/sales/distribution and licensing rights for a revolutionary medical marijuana product "MariMist" for the use in the care of cancer patients with MariMedical Pharmaceuticals (MMP), a privately held company. Additional clinical applications include the treatment of nausea, anxiety and pain relief.

The terms of the JV agreement are extremely beneficial to Fortitude and its shareholders. As all revenues pass through the company, 92% will remain with Fortitude with a small royalty payment of 8% based on the wholesale price being paid to MariMedical. The agreement is for 3 years with an automatic extension for 7 years triggered when certain modest sales goals are achieved. Fortitude also has a one year option to acquire the international licensing rights for Mari-Mist, along with the right of 1st refusal for any future products solely developed by MMP.

MariMist is a pharmaceutical formulated medicinal product that is high in CBD and low in THC. This combination of cannabinoids has been shown to greatly reduce or eliminate the physcoactive effect, without minimizing the medicinal benefits of the drug. The product is derived by CO2 extraction of a hybrid sativa & indica plant resulting in cannabis oil. The oil is then blended with a pharmaceutical grade ethanol which contains no benzene and is reduced to under 5µm particle size for delivery by a nebulizer. This is a traditional medically accepted route of delivery for patients in need of palliative care. The importance of this type of delivery will be fully realized when medical marijuana finishes its transformation to become a full integrated part of best care practices. MariMist is the only 100% natural cannabis based product that is delivered by a nebulizer, a widely accepted clinical method used in hospitals and hospice care for the administration of other drug therapies.

Thomas J. Parilla, CEO of Fortitude Group, Inc., commented, "Mari Mist is set to begin full patient testing in Colorado in the very near future. Full production of the product is expected to begin in the fall of 2014. We are currently in negotiations with several labs, manufacturing facilities and established medical marijuana corporate industry experts and we expect to announce finalized deals shortly. Product packaging and distribution channels are also being finalized. Our target markets for roll out are the western states of Colorado, Washington, Nevada and California. We will add additional territories by Q 1 of 2015, with full expansion to the continental USA market plus Hawaii and Alaska by Q 4 2015." Mr. Parilla went on to say, "We will provide shareholders with additional as warranted. I am proud to not only provide our shareholders with a product that will increase the company's intrinsic value, but that Fortitude can be part of an industry and facilitate a product that will result in better outcomes for cancer patients."

The US food and Drug Administration (FDA) has recognized cannabinoid drugs to be effective to relieve nausea and to increase appetite in people with cancer. The national cancer association reports "The potential benefits of medicinal Cannabis for people living with cancer include antiemetic effects, appetite stimulation, pain relief, and improved sleep. It appears that physicians caring for cancer patients in the United States who recommend medicinal Cannabis predominantly do so for symptom management." A 2010 report from the President's Cancer Panel, a three-person panel that reports to the U.S. president on the National Cancer Program, said approximately 41 percent of Americans will be diagnosed with cancer during their lifetime

According to the ProCon.org website, as of Dec. 28, 2012 there are theoretically 2,421,069 medical marijuana users in the USA. This number does not account for recreational users or additional users who will be entering the market place from the 9 states that have November 2014 MJ initiatives on the ballots. Link: http://medicalmarijuana.procon.org/view.answers.php?questionID=001199

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