DionyMed Brands Inc. (fka DYMEF)

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https://finance.yahoo.com/news/dionymed-scores-victory-eaze-payment-130000539.html

Have a nice day.

[mrd4444mrd]

I believe it is very under the radar also, just look at this board.

"At June 30, 2019, there has only been one tranche for an issuance of 662,252 Units for gross proceeds of $753,750."

"Second Tranche Draw from Alumina Partners (Ontario) Ltd. Capital Commitment 
On July 29, 2019, the Company issued 425,000 Units to Alumina for gross proceeds of $458,621 as part of the second tranche 
draw from Alumina Capital Commitment."


Looks like they are trying to draw as little as possible from the Alumina deal while waiting for the strategic investor or pps to rise. 

"In response to a number of inbounds from potential strategic partners expressing interest in exploring a transaction involving DionyMed, the Company retained a financial advisor to assist in managing these discussions. This review process is coming to a conclusion, and while the Company cannot at this time provide any assurance that a transaction will materialize, the Company expects to provide an update in due course;"

[djmurdock]

Yeah, I kept seeing 25M on my TD, OTC markets, etc. But IR got back to me and you are correct, 67M outstanding. But the float is still very low.

I thought I saw two $2M PP draws. But maybe I'm mistaken.

Who is the strategic investor and what's that about? Thanks, sorry new here, but am blown away by how under the radar this is.

[mrd4444mrd]

The market cap is closer to 60M, I believe you are leaving out the series a preffered.

They are not taking out 2M tranches from Alumina, if you look at my more recent posts I post the exact amounts from the filings.

They are drawing as little as possible while waiting to close the deal with the strategic investor.

[djmurdock]

Last week I stumbled upon DionyMed Brands. (CSE: DYME) (OTC: DYMEF) "DionyMed is a multi-state cannabis brands platform, supporting cultivators, manufacturers and award-winning brands in the medical and adult-use cannabis markets."
I have been investing and trading in the Cannabis sector since it's start and have never seen a more undervalued company.
Current market cap is a ridiculously low $25M, with a very low float, 18.5M!!! Their assets total $55M, including their Goodwill assets, which I always take with a grain of salt. But real assets total about $15M.
Management team is very legit:
https://ir.dionymed.com/company-information/management-team
Let's look at their recent financials:
"Total gross revenues of product processed for the three and six months ended June 30, 2019 are $12.7 million and $34.4 million representing increases of 830% and 1,333% of the respective periods in 2018."
So it's safe to say revs for the year could be up to $70-80M. At it's current market cap, that gives it a price to earnings ratio of about -3!!!!! Most cannabis companies have 20, 30, 50, 100 PE ratio!!! ACB has a 50 for example. I've never seen a negative PE ratio in the Cannabis sector ha
They own CHILL, which is a EAZE type delivery platform. I just saw a massive CHILL billboard in downtown San Francisco. They are partnered with some very well known Cali brands like Zkittles, Lemon Tree, Canna Strips, CBDALIVE, etc.
Zkittles is one of the best strains/brands out right now, if you didn't know. This partnership alone is huge!
They just closed this huge deal with IIPR:
https://ir.dionymed.com/news-events/press-releases/detail/32/dionymed-announces-close-of-acquisition-with-innovative
Overall, this company is making great moves, partnered with some of the best brands in CA and is clearly under the radar right now.
Negatives: Low volume, probably a year or two from being profitable and has $20M left in a PP, with underwriters getting a 10-15% discount. They appear to be selling in $2M tranches, which coupled with its low exposure/volume has driven the price down for a year straight. IMHO this has provided a great buy in opportunity.
In a land of overvalued Cannabis stocks, I think this is highly undervalued and worth looking at. Similar MSOs have market caps 20-40X as high.
Disclaimer: I hold shares and will be buying on dips, like today.

https://ir.dionymed.com/news-events/press-releases/detail/32/dionymed-announces-close-of-acquisition-with-innovative

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https://www.marijuanamoment.net/american-bankers-association-predicts-marijuana-banking-bill-will-pass-by-next-month/

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The “Chill supply company”
ha$ a nice ring.

[mrd4444mrd]

Positive stuff

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Found this on the 1933 board:
https://marijuanaretailreport.com/cannabis-industry-contributions-to-state-of-nevada-break-100-million/

[mrd4444mrd]

Expansion of Chill
Since terminating the Eaze relationship, the Company is focusing its efforts on scaling its online delivery platform, Chill, through aggressive
marketing and customer acquisition. Since the Company began to actively market Chill in early April 2019, the Company has increased gross
sales to $855,000 per month as of June 2019, representing an annual run-rate of $10.3 million. Revenues generated through Chill are also
currently generating improved contribution margins relative to revenues earned under the Eaze relationship. The Company expects to
launch chill in Southern California in early 4Q 2019, which will more than double the addressable market.

[mrd4444mrd]

Looks like they are trying to draw as little as possible from the Alumina deal while waiting for the strategic investor or pps to rise.

In response to a number of inbounds from potential strategic partners expressing interest in exploring a transaction involving DionyMed, the Company retained a financial advisor to assist in managing these discussions. This review process is coming to a conclusion, and while the Company cannot at this time provide any assurance that a transaction will materialize, the Company expects to provide an update in due course;

[mrd4444mrd]

Second Tranche Draw from Alumina Partners (Ontario) Ltd. Capital Commitment
On July 29, 2019, the Company issued 425,000 Units to Alumina for gross proceeds of $458,621 as part of the second tranche
draw from Alumina Capital Commitment.

[mrd4444mrd]

At June 30, 2019, there has only been one tranche for an issuance of 662,252 Units for gross proceeds of $753,750.

[djmurdock]

Of course it pops right before I buy some, god damnit haha

[mrd4444mrd]

I wish I paid .77

[mrd4444mrd]

They terminated the contract with Eaze because Eaze is breaking the law. Had a negative impact on the revenue but long term will force them to build out Chill faster.

[heribertobarlow]

What happened to profitability in q2? Was hoping it would continue the trend of positive profit.

Until it hits a positive profit for 2 straight quarters, I see the price going down still.

[djmurdock]

You guys couldn't wait for me to get some funds ready to buy this? I see how it is! ha. Nice pop.

[mrd4444mrd]

https://www.otcmarkets.com/stock/DYMEF/news/DionyMed-Brands-Awarded-Three-Provisional-Licenses-in-Los-Angeles-and-San-Francisco?id=239081

[djmurdock]

Thanks. So a lot more to go. Just trying to figure out this stock, just found it. The MC seems ridiculously low, like out of this world low for its revs, legitimacy, share count, etc Especially compared to most cannabis stocks.

The only thing I can see holding this down is the PP.

[mrd4444mrd]

Gotcha. This is from the PR subsequent to Q2

The Company drew additional $2 million from its Inventory Finance Facility and issued a $2 million secured convertible note to Gotham Green Partners.

This is the first mention of them tapping the Alumina deal so I would guess it is the second tranche.

[mrd4444mrd]

d, “This Agreement provides DionyMed with additional capital to accelerate our cannabis brands distribution and delivery platform. We are continuing to expand our California Direct-To-Consumer footprint with our entry into new markets- Sacramento and Los Angeles- bringing great cannabis brands to consumer throughout the largest cannabis market in the world.”

[djmurdock]

CAD$32 million = $24US

[mrd4444mrd]

The alumina deal is the finance they are drawing upon, not toxic but not great.
https://www.businesswire.com/news/home/20190606005861/en/DionyMed-Brands-Announces-Investment-Agreement-CAD32-Million

I don't know what the 24M # is or where you are getting it from.

[djmurdock]

I guess this explains all the downward pressure. 24M US of dilution to get through, a pretty penny. I wonder how many tranches they are through?

[djmurdock]

I saw something about some toxic financing, anyone know any details? Thx

[mrd4444mrd]

The Defonce chocolates is a very well known and respected brand also.

[mrd4444mrd]

Hopefully the strategic partner is well known so we can get some eyeballs on these guys.

"In response to a number of inbounds from potential strategic partners expressing interest in exploring a transaction involving DionyMed, the Company retained a financial advisor to assist in managing these discussions. This review process is coming to a conclusion, and while the Company cannot at this time provide any assurance that a transaction will materialize, the Company expects to provide an update in due course;"

[Nextinline]

This is a good interview: https://www.newcannabisventures.com/dionymed-is-driving-growth-with-multi-state-cannabis-distribution-and-delivery-operations/

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Something is fishy with this stock.
Yahoo removed the earnings report.
Stockhouse is silent also.
Cannabis investors have some good info.
This company has a preferred lender...
Guess who?

[djmurdock]

I notice they have two huge strain partnerships, zkittles (my favorite!) and lemon tree. Both very legit!

[djmurdock]

Weird, this looks insanely undervalued, especially compared to most cannabis companies. What am I missing here???

[Nextinline]

Thanks for the link.
https://www.marijuanamoment.net/president-trump-reiterates-his-administration-will-let-states-legalize-marijuana/

[mrd4444mrd]

https://ir.dionymed.com/news-events/press-releases/detail/35/dionymed-brands-inc-announces-second-quarter-2019

[mrd4444mrd]

It's there now... talk of a deal is interesting

[Nextinline]

Financials were due yesterday!
Do you have a link ?

[mrd4444mrd]

More than an ugly day yesterday. Hopefully today will be better.

[mrd4444mrd]

This is more than a stock it's a company. A company founded in 2017. What's poison about the company.

[Nextinline]

I’ll give you that .

[BidnessMan]

Wow!
The more things change, the more they stay the same.
Get out now!
This stock is , was, and always will be POISON!!!!

Looking at your choices - it's amazing how wrong they are.

[mrd4444mrd]

Lol, I know the feeling. I like the Origin House comparison even better because of the very similar business models and revenues but huge disparity between market caps and I can see it happening in a shorter time frame.

I do believe if you hold it for 5 years you'll get a similar return to what you would have gotten holding canopy/tweed from 2014. I also know this company will still be around in 5 years, they are the real deal, rare for the weed space.

[Nextinline]

It could rise as quick as it fell, that is so true.
I am tempted at this 30 RSI to increase my holdings.
Between you and I,
(I own a Large amount already)!

This situation with Dionymed reminds me of when I held a significant amount of Tweed in 2014.
I wound up getting in at the bank cost.GMP Securities,TWMJF @$2.30 ish.
Now look at them ,Canopy Growth
$8,690,000,000.00 market cap.

[mrd4444mrd]

This thing moves on no volume, as evidenced from the fall from 1.30 to .88 all on no volume. It can easily go the other way and then some with some eyeballs.

[mrd4444mrd]

But I think anything is possible with this stock it moves on so little volume. Only 13M in the float. It could easily run to near 2 on a good q2 report.

[mrd4444mrd]

I feel like it is definitely under the radar. Then we have the problem that the whole pot sector has been going down to all time new lows for months. Less eyeballs on the sector. Hopefully they report some good stuff along with their q2 report this week but even then I fear that it won't get it started. We need a really good report and/or more eyeballs on the sector. I think it will happen by the end of the year.

[Nextinline]

Good read:
https://www.forbes.com/sites/irisdorbian/2019/08/15/california-is-worlds-biggest-legal-pot-market-says-new-report/

[Nextinline]

Yes,and,
Doesn’t it seem odd that no-one is on this message board?
No- one has posted on Yahoo in over one month.
No recent posts on Stockhouse.
No recent mention in Motley Fool or any other of those bullshit publications.
No one is trading !
Just the same MMs’ playing ping pong with each other making it appear as if they all have activity.
There is none!
I would like to hear your perspective on this.
Is it possible “All the birds are flying in the wrong direction”?.
If so...
Where does that leave You and I?

[mrd4444mrd]

Dionymed annual revenue exceeds the market cap. They just expanded to LA and Sacramento. Their business model and revenue is similar to Origin House who is in the process of being acquired by cresco for $800M.

[Nextinline]

Dionymed has financial backing , with capital infusion as needed.

Along with the approval of Gotham Green , and Innovative Industrial Properties.

https://finance.yahoo.com/news/dionymed-brands-inc-announces-investment-212100212.html

[mrd4444mrd]

On Dec 31, 2018 there were 52M O/S and around 5.5M warrants and options in the money. Looks like the number I was using was fully diluted!

Now just have to go through the deals in 2019 to figure it out completely. Also get Q2 filings coming next week so will get some confirmation. This is an even better deal than I was thinking!