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Has anyone compared what we're doing at PHGE with what they're doing at Cytophage? (TSX-V:CYTO)... Those guys seem to be commercializing a phage product.... I'm excited for the prospects of the whole industry. The 'Age of Phage' is upon us!
This Forbes Article paints a good picture of the potential for this company.
I understand that the new CEO will be attending this conference later this week: https://www.capitalevent.ca/conferences/alpha-north/
It will be interesting to see if the exposure translates into any new buying interest from institutional small cap investors, though it may be that most of those attending this event are already in Exro.
I became a shareholder last fall in the high 20s, after they announced their private placement. I've spoken with the new CEO a couple of times, and am confident she has a plan to move this technology ahead expediently into commercialization. I think we'll see more and broader exposure of the company to investors, and I am hopeful we will see some compelling partnerships on the business development side.
It has been a good run!
That would be nice, but I fear that may be a little optimistic... still, even if tempered, they should be cashflow positive within the next fiscal year, and that'd be a step in the right direction.
I think those figures represent the potential. How close we can get is the question.
There is an estimate that California represents a testing market of $90 to $100 million presently... EVIO has 1/3 of the accredit labs in the state... but I don't think that means we can extrapolate to a $30 million potential revenue base for EVIO... maybe $5 to $10 million initially? but across all the markets they're in, I can't see why they shouldn't be doing meaningful revenues, with positive cashflow, by middle of 2019.
I've been led to believe that pesticide testing costs in Canada will run from around $400 to $600 per test. For a full battery of tests (beyond pesticides, which are not yet mandated), it would run upwards of $1,000+. Regulations will mandate that every 8kg of production (flower) be tested for pesticides. Somewhere I saw an estimate of up to $250 million in potential testing revenue for pesticides alone for the whole Canadian market. I think there may be around a dozen qualified independent labs in Canada? Of which Evio's Keystone Labs is one... can they get 5% to 10% of the market? I dunno, but even 2% is $5 million a year.
They could do a better job communicating this stuff...
I suppose it is possible they withdrew the prospectus because they've found another route to go public? Maybe they plan a Reverse Takeover with an existing public shell or something? (... he said, hopefully...)
Maybe someone has already posted this (I haven't been able to read every post lately), but these guys may be generating some increased exposure:
I'm not sure what everyone's hangup with the "A/S" is... there are lots of companies with unlimited A/S doing just fine... management are shareholders too - excessive dilution affects them just as it does us... It seems an irrelevant distraction to me. I think we have to put some faith in the board to be prudent about authorizing any new share issuances. That said, it would be nice to see them beef up the board, from a governance standpoint, with some more strong independent board members, but I expect to see some enhancement on that front in conjunction with the Canadian listing.
I think we're seeing the results of better IR initiatives, and I have a feeling we're going to see more, better, and broader PR/IR efforts over the coming weeks... at least I hope it carries on!
I think we will get to 18 labs by Q1 2019... I thought I heard that the company's objectives were to get to between 25 to 30 by the end of 2019... I don't know what that will translate into in terms of EBITDA, but I have a guess, and if I'm close it justifies a pretty healthy increase in share price from here, even assuming additional dilution along the way... $3 to $4 by end of 2020, anyone?...
For interest's sake:
Links to the Prospectus filing, and other filings:
Prospectus:
https://sedar.com/GetFile.do?lang=EN&docClass=9&issuerNo=00045196&issuerType=03&projectNo=02791202&docId=4347766
Bylaws:
https://sedar.com/GetFile.do?lang=EN&docClass=35&issuerNo=00045196&issuerType=03&projectNo=02791202&docId=4347768
"Document affecting rights of securityholders (or amendment thereto)"
https://sedar.com/GetFile.do?lang=EN&docClass=35&issuerNo=00045196&issuerType=03&projectNo=02791202&docId=4347769
A refreshing approach for a small-cap CEO! I respect and appreciate the approach... 'under-promise, over-deliver' seems an impossible adage for most small company CEOs to really buy into... I think WW is getting better at it. Of course time will tell, but I for one appreciate not being inundated with fluff PRs just for the sake of getting attention, with no substance behind them... take care of the business, and the share price will take care of itself, generally, in due course.
... and a Canadian listing?
This is exactly the kind of board member they need. I've met this gentleman in the past - he's a solid professional. Just what we need... and former CFO of Tweed?! comes with great industry connections, professional accounting designation, and start-up experience. Good package of skills.
This bodes well for a Canadian listing imminently. Let's keep our eyes open for a prospectus filing, or RTO announcement.
exactly!
While I'm not crazy about the platform here, and wish we could get past the penny-stock promotional pieces, this offers a good overview for the uninitiated, and some additional colour on a few recent events:
https://upticknewswire.com/featured-interview-ceo-william-waldrop-of-evio-inc-otcqb-evio/
It is entirely implausible to me that they'd be buying back shares... it's just a theory floated by one of our more prolific posters
I couldn't help myself... I read your post, and now I can't help but reply. Can you explain how it would make the slightest bit of sense for a company to issue shares at $0.60 cents and $1.18... then buy them back at higher prices!? A share buyback would only make sense if they had nothing better to do with the capital (and that's not the case here - they have acquisitions to make that would return more to the shareholders, and if the shares were trading at a deep discount... sorry, I don't buy that theory.
While I agree that the analysis should be on the basis of the fully diluted number of shares, you would have to concede that the cashflow would improve following conversion, without the interest burden (around half a million a year), so the DCF component of his valuation would be higher... so your $1.16 is similarly misleading.
wow, that was unnecessary... perhaps I was confusing your comments with someone else's, but there were some inconsistencies in the comment that I thought could use clarifying. My apologies, I didn't mean to offend you. I won't bother to point out any further erroneous comments. As it happens, I participate in private placements regulatory and know considerably more than you give me credit for, not that it matters at all to me what you think. I will forego reading any more of your posts per your wishes.
A few clarifications for you:
(1) The Canadian investors in the last convertible note issue are not, for the most part, retail investors;
(2) Canadian TFSAs cannot purchase OTC listed shares (unless of course they're also listed on a recognized exchange);
(3) Similarly, TFSAs would not have been able to purchase the convertible note (to the disappointment of many!)
Personally, I'm not sure I'd hang my hat on an army of tax-sheltered Canadian retail investors, on its own, being the impetus for the market to assign a dramatically increased value to EVIO.
On this I share Tarball's view, that sustained increasing cash flow is what will drive value for us. Sure, it won't hurt to have more eyes on it, and better liquidity... And maybe an audience of investors more familiar with the space.
One thing a Canadian listing should bring is better transparency on orders and trading... It's weird to me when I submit an order to the OTC market and it does not appear 'on screen' in the market depth, for example! The market makers' manipulation in the OTC market is legendary, and should be tempered dramatically with a CSE of TSX-V listing.
I don't think you have enough information to conclude that definitively.
not every issuance of shares is dilutive, necessarily.
That's funny...I took his many different jobs as a slight negative! I must be old! ;)
Maybe you're right, but in my experience life is never as binary as you might like.... Change tends to happen more gradually than immediately...
Maybe it's cheaper and easier than paying him severance? Maybe to send the message that while he may be inept, the company is still on reasonable terms with him - i.e. he hasn't done anything criminal or fraudulent with our books? Maybe as a gesture of goodwill, to give him more time to exercise his options that would otherwise certainly face an accelerated expiry? Maybe so he is around to ask all the questions that will undoubtedly come up as someone else gets up to speed? I have no idea how big the accounting department is at Evio, but I have a hard time imagining it is more than a book keeper and/or a clerk or two, overseen bby whoever the CFO is/was... there are a lot of moving parts to address - especially with a public company - and one that is trying to grow quickly, as this one is, will be even harder to keep up with - maybe two heads are better than one for a while? I dunno... or maybe it's what you surmise: nasty mutual backscratching, and nefarious behaviour... but I'd rather give them the benefit of the doubt a little bit longer.
Well, presumably replacing the interim CFO with someone with more public accounting experience should address the deficiencies... time will tell whether it is sufficient, but at least it is a step forward...
Maybe he remains a "consultant" so his options don't expire immediately ? :).... I have to admit I had hoped for a new CFO with more public company experience. Mr. Kane hasn't spend more than two or three years in any one place throughout his career: https://www.linkedin.com/in/david-kane-6230618/ I hope he's up to the challenge of managing the finances of a public company that will be under a tremendous amount of scrutiny!
What do you think might be relevant in this piece from 5 months ago?! I would not be surprised if Evio had moved on from that law firm by now...
Have to agree with you! They need to dump that PR channel, and get someone who can craft press releases that are clear (and not misleading).. . And help with messaging overall..
Canadian investors can convert at any time... Could have converted the day after the deal closed if they wanted (though they can't sell for six months after conversion... Maybe that's what you're thinking?)
Ok, I admit it looks like they could have done better, but recall that when they started the process the share price was in the 60 to 65 cent range, so not unreasonable... I can assure you that the investors they approached would have walked away if the company had said, "hey you know we were talking 60 cents, the markets now higher, we'd like to do the deal at $1.20..." then they'd have raised $0.00, and the softness in share price would have been pretty dramatic!...
Frankly, I prefer their shift towards only making announcements when there is material news... I grow weary of companies that are constantly bleating about every baby step they're taking, just for the sake of issuing news releases... I think this is a sign of maturity; when we next hear something, I am optimistic that it will be meaningful.
It would be nice if they were speaking, rather than just exhibiting, but exposure is exposure, I guess!
I would wager we see it pass $2 again before it goes back below $1. I'm optimistic we'll soon hear about some interesting ways they're putting that last raise to work.
Think of it this way... you own some apples; you were able to sell them from a booth at the end of your driveway.... now you can go and sell them at the big market downtown... it's just a different marketplace. You're trading the same thing.
The investors that haven't heard about it won't influence market price much!
I think you may want to temper your expectations for the impact of a Nasdaq listing... While I imagine it will be positive, keep in mind we're already listed on a senior north American exchange (cronos is listed on the venture exchange)... I suspect the market will demonstrate its efficiency here... And keep in mind now traders know it's coming - the aggressive arbitrageurs will be buying now to sell on any Nasdaq listing pop... Don't get me wrong, a 30% move would be delightful, but I'm a little more circumspect
$100,000,000 anyway... (@ approx 2% of CDN$6 Billion)
And with no worries about transporting across provincial borders, since it is (or will be) federally legal, good efficiencies to be gained by centralizing labs.
One question mark is what the government mandate for testing will be. At present most of the large licensed producers have their own in house state of the art labs - if the government considers self-testing adequate, it may dampen the market - though independence would be desirable, I think.
Consensus estimates keep coming in around $6 billion for the Canadian market... though nobody knows for sure, as at present it is all underground!
http://lmgtfy.com/?q=canadian+cannabis+market+size