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Today, we are going to present a new business profile that has excited the market by releasing an ambitious acquisition strategy.
We are talking about Joblocationmap Inc (OTCMKTS:JBCT), which specializes in the wholesale and retail of essential oils.
Logo from https://bestaromaoils.com – Joblocationmap Inc OTCMKTS:JBCT
From trading close to $1.5, fueled by the new announcements, the share price spiked to touch the level of $5 in a short period of time.
But, that is not the most important.
The most interesting is that the trading volume increased quite a bit besides the share price spike. More than 100 thousand shares changed hands, which, in our opinion, shows that many market participants are currently reviewing this name.
Have a look at it:
1 month chart for JBCT
Business
JBCT was founded in Nevada on June 15, 2010 and is headquartered in Chicago. The most interesting and most successful business venture seemed to start on July 10, 2017, when the company acquired Bio Health Products Inc. for 200,000 shares. This company owned assets acquired from Essential Oils, a sole proprietorship, which owned the know-how to commercialize high end pure organic oils also called “Essential Oils.”
The following are part of the products that we could find on their website; these are the Essential Oil products:
Essential Oils – Joblocationmap Inc OTCMKTS:JBCT
The following are part of the Beauty products, which are used for facial and skin care needs. The most significant is that they do not contain filler, or contaminants.
Beauty Products – Joblocationmap Inc OTCMKTS:JBCT
Finally, these are the Carrier Oil products:
Carrier Oils – Joblocationmap Inc OTCMKTS:JBCT
What’s the business strategy?
The management running JBCT seems to be pretty smart. It has realized that people’s standards are “becoming more and more stringent.” According to the company, there are many people out there that have been disappointed, hopelessly searching for pure, natural, and therapeutic grade oils. A few competitors provide quality products free of additives, toxins, and fillers. That’s the segment, which is being targeted by JBCT.
There is more.
The company noted that the essential oil market size exceeded $6.0 billion in 2015. Additionally, the industry revenue surged by 6.1% in 2014, and the global essential oils market is projected to grow at a CAGR of 8.6% from 2015 to 2022.
We believe that if the company is able to grow at the same pace that its peers do, the share price should be pushed up by the market.
We encourage readers to check bestaromaoils.com to understand the products being provided. It should help understand the recent highs in the share price.
Recent Developments
The most interesting was released on December 19, 2017.
The company released a corporate update to its shareholders, wherein it noted again that it is trying to fulfill the demand of natural, organic health and beauty products.
But, the most significant was that the company released how it is going to achieve it.
In 2018, the company will be expanding its business by acquiring other e-commerce sites. This way, JBCT may be able to increase its online footprint as well as increase traffic to its current portfolio of sales platforms. It is a fantastic idea that could also enhance business growth, which, we believe, could drive the share price to new highs.
That’s not all.
The company also noted that it has signed a new supply agreement with Haishi Biological Technology Co. This new agreement will increase the amount of products and may be able to increase the top of the P&L as well.
Haishi Biological specializes in the manufacture of various products, such as cosmetics and essential oils. It does not seem to be a starter in the industry. It exports to nearly every continent and its products are manufactured in state of the art facilities.
Enhancing the Balance Sheet
As a result of the recent acquisition of Bio Health Products Inc., the company’s balance sheet has changed completely. Please note the increase in assets and liabilities in the following image:
Increase in Assets – Joblocationmap Inc OTCMKTS:JBCT
The company not only changed its financial situation, but also acquired a new business model, and new know-how. It was a great deal that market participants are now celebrating.
Additionally, as the company got larger, its credit has increased and financing new projects will be easier.
Finally, please note that the amount of common stock was not increased, so that previous shareholders did not suffer from stock dilution. That is a great news.
Previous Acquisitions
We researched the history of the company to see if it has expertise in acquiring other business. We were glad to find that it has required expertise. Read the following information that we found in the company materials:
As of April 27, 2017, Omri Morchi and Eden Shoua agreed to sell a stake of Peak Global Consultants Limited constituting approximately 84.2% of the Company’s 9,500,000 issued and outstanding common shares. The buyer was the current CEO of JBCT.
Conclusion
Currently trading with a market cap of $37 million, JBCT is an exciting story among small caps. It is a company that is already generating revenues and with $0.09 million in assets and $0.11 million in cash, we believe that we need to focus on the business growth. If the company is able to increase the amount of revenues and assets by executing new acquisitions, we believe that the share price will cree up.
To sum up, be sure to follow this name, as, in our opinion, it will not be the last time that we talk about it.
We will be updating our subscribers as soon as we know more. For the latest updates on JBCT, sign up below!
Disclosure: We have no position in JBCT and have not been compensated for this article.
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