WOW! A new report projects PRTT to be worth $39.14 per share per share! Current price $3.45.
Reverse Merger Underway With Protect Pharmaceutical Corp And Novgorod Would Increase PRTT Sales, Assets, And Growth Dramatically
Protect Pharmaceutical Corp. (PRTT: OTC) revitalizes farming soil and produces organic, toxin-free crops to meet the increasing global demand for agricultural sustainability initiatives
PRTT building 2 new production facilities in Europe projected to increase 2021 revenues by $60 million
Novgorod is an international food production company that is ranked as one of Russia’s 50 fastest growing companies with 2019 sales of $128,913,000 and growth of about 50% per year for past 2 years
PRTT announced Novgorod will acquire controlling interest of PRTT. Upon completion of merger and Novgorod’s reporting to GAAP accounting standards,the combined companies will trade as PRTT
Financial reports due within 60 to 90 days are expected to finalize merger and trigger higher share prices resulting from dramatic increases in sales, operations, and assets
About Protect Pharmaceutical Corp
Under the umbrella of Protect Pharmaceutical Corp. (PRTT: OTC), Agropharmacy provides sustainable products to revitalize farming soil, and produce more robust and abundant toxin-free crops in order to meet the increasing global demand for agricultural sustainability initiatives.
Aug. 03, 2020 Protect Pharmaceutical announced, “Protect Pharmaceutical’s Agropharm A Fertilizer Was Shown To Increase Crop Yields By As Much As 30%”. “This shows a very promising trend in Protect Pharmaceutical’s plans to become Europe’s leading bio-fertilizer provider” comments Angela Savcenco, Director of European Operations.
July 7, 2020 PRTT announced 2new installations in 2020. Agropharm organic fertilizer production sites will be launched in Slovenia and Spain to further develop our Agropharmacy program to increase the quality and quantity of organic food.
Savcenco commenting further said,“The two new installations will allow the company to supply demand within all boarders of the European Union. This also signals the transition from the active testing stage to active marketing. The installations in Slovenia and Spain will mean that the company should capture approximately 50 million Euro per year in new revenues once construction is completed. The company is targeting the new installations to be fully operational by the beginning of the 2021 planting."
Protect Pharmaceutical Corp and Novgorod Merger
September 15, 2020 Protect Pharmaceutical Corp announced an agreement to be acquired and merged with Novgorod which specializes in the production and sale of sugar, flour, cereals and other groceries. Actively successful in the Russian food market for over 15 years, Novgorod operates with such retail giants as AO Tander (Magnit), X5 Retail Group, OOO Lenta, AO Dixy South and others. Novgorod reported 9.7 Billion (RUB) (US $128,913,000 as of release) in revenues for 2019. Second quarter 2020 revenues were 3.7 (RUB) (US $49,173,000.00 as of release).
Under the agreed terms, Novgorod will acquire control of Protect Pharmaceutical Corp upon completion of the transition of Novgorod’s reporting to GAAP accounting standards. Protect Pharmaceutical Corp will continue to operate as a public company and the eventual resulting combined company will continue to trade under the symbol PRTT.
Protect Pharmaceutical Corp and Novgorod foresee incredible synergies from the transaction. Novgorod intends to use Protect Pharmaceutical products for its own production and Protect Pharmaceutical Corp will harness the market power of Novgorod as an incredible opportunity for expansion. “This is an amazing milestone for Protect Pharmaceutical. We have been searching for the right partner to expand and grow and in Novgorod we have found it,” states Angela Savcenco.
Current Market Comps
Five current market comps were selected and ranked from smaller to larger companies in similar industries. Average Price (Market Cap) to Sales Ratio of 16.7 to 1 was calculated and determined for this group of market comparison companies.
Arcadia Biosciences – (RKDA: Nasdaq)
Share price 09/16/2020 - $3.05
2019 Sales - $1.17 million
Market cap - $33 million
Price to Sales Ratio – 28.2
Marrone Bio Innovations (MBII: Nasdaq)
Share price 09/16/2020 - $1.20
2019 sales - $29.4 million
Market cap - $179 million
Price to Sales Ratio – 6
Precision BioSciences (DTIL: Nasdaq)
Share price 09/16/2020 - $5.93
2019 sales - $22.23 million
Market cap - $310 million
Price to Sales Ratio – 14
Beyond Meat (BYND: Nasdaq)
Share Price 09/16/2020 - $156.57
2019 sales - $298 million
Market cap - $9.8 billion
Price to Sales Ratio – 32
FMC Corp (FMC: NYSE)
Share Price 09/16/2020 - $110.67
2019 sales - $4.6 billion
Market cap - $14.7 billion
Price to Sales Ratio – 3.2
AVERAGE PRICE TO SALES RATIO = 16.7
Market Comp PRTT Share Price When Merger is Concluded
Potential PRTT share price based on current market comps of Price to Sales Ratio of 16.7 to 1 and combined 2019 sales exceeding $128,913,000 and 55 million shares outstanding is $39.14 per share.
With additional sales from the 2 new production facilities coming on line at the beginning of the 2021 planting season, sales are expected to increase by $60 million annually which could increase PRTT share price by $18.21 per share to well beyond $39.14 per share to $57.34 sometime in Q2/Q3 2022 when a full year sales is reported for the new production facilities.
The trend to lower Sales to Price Ratio for larger companies suggests that as PRTT grows, the ratio will decrease accordingly and share price expectations will be adjusted accordingly.
When the PRTT and Novgorod reverse merger is concluded as announced and when Novgorod sales are combined with PRTT, then the potential and likelihood for substantially higher PRTT share prices approaching the current market comp of 16.7 to 1 is reasonable to assume and to expect.
Fair Market Value should not be expected to be achieved immediately upon the close of the merger, but will likely take some time for investors to learn about this compelling story. The time to realize full Fair Market Value is never known exactly and can be influenced by many factors outside the world of PRTT. That time is greatly determined by visibility in the investment world or in other words by “Investor Awareness.”
Most Recent Protect Pharmaceuticals Until Audited Financials are Released Q4 2020
Conclusion
Based on existing operations and growth of Protect Pharmaceuticals Corp combined with the announced reverse merger of Novgorod into PRTT, current shares of PRTT appear to be an outstanding bargain for astute investors. The most notable risk is the exposure to the merger not materializing as planned. With the merger announcement already made and the current auditing of financials underway, the risk seems low and the reward seems exceptionally high.
Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. Except for historical matters contained herein, statements made in this press release are forward-looking statements. Without limiting the generality of the foregoing, words such as “may”, “will”, “to”, “plan”, “expect”, “believe”, “anticipate”, “intend”, “could”, “would”, “estimate,” or “continue”, or the negative other variations thereof or comparable terminology are intended to identify forward-looking statements. Forward-looking statements involve known and unknown risk, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date hereof. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in the Company's filings with OTC Markets. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
https://seekingalpha.com/instablog/21922151-bioresearch-alert/5498768-reverse-merger-underway-protect-pharmaceutical-corp-and-novgorod-increase-prtt-sales-assets
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