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CVLB will be reporting revenues for Q4’20 which will be bigger than the TOTAL revenues for last fiscal year 2019.
Talk about growth.
And they did that without almost any extra cash available. Check the balance sheet at the beginning of the year. Now the war chest is stronger than ever. Let’s see what happens next year.
$CVLB. There could be new record revenue numbers for November coming out soon.
Data:
Yesterday's close $8.25
50 DSMA $6.86 and increasing every day.
Average price since last Q report: $8.48
Average price for November: $6.90
Average price for October: $6.63
Average price for September: $6.46
Average price for August: $6.59
Average price for July: $4.06
Average price for June: $1.58
CVLB. The float based on 20,498,701 shares of common stock outstanding.
Mark McLaughlin(3) 1,216,020 shares 5.93 %
Former President, Former Chief Executive Officer and Former Director (through February 2018)
Directors & Executive Officers as a Group (9 persons) 5,599,357 shares 27.32 %
Institutional Investors 3,368,421 shares 16.43 %
____________________________________________________________
Float: 50.32% or 10.3 million shares.
I would like to see what will happen when the daily trading volume rises above a million shares.
The S-1 filing was previously announced.
It looks like they want to be able to trade any spike after the listing. It makes sense for them. It doesn’t affect our financial position at all.
Check the S-1 on pages 67 & 68 for the insiders ownership percentage. It’s well over 30% when the Institutuional investors are included to that list.
Just the Nasdaq listing warrants a 20-35% stock price appreciation. And $12-13.5 is still lower than the peer average P/S valuation.
2. Last peak before the RSS was $2.14 which would be $10.70 today.
3. Several fundamental changes since then:
Bigger TTM sales confirmed with the last Q report.
Strongest balance sheet ever. Institutional investors onboard.
No more need for dilutive financing.
Nasdaq listing around the corner. All requirements met.
Confirmation of a new brand launching in Q1.
Leasing of a new call center greatly reducing costs.
Veritas to be launched any time now with additional RexMD products.
New ShapiroMD products were also launched recently.
MHO. We will see above $15.00 SP in April once the Q4 FY report comes out by the end of March next year.
An extra $1.45MM for the war chest.
This guy doubled his money in one day. That's luck
-------------------------------------------------
https://sec.report/Document/0001493152-20-022078/
Item 1.01 Entry into a Material Definitive Agreement.
Securities Purchase Agreement
On November 19, 2020, Conversion Labs, Inc., a Delaware corporation (the “Company”), consummated the second and final closing (“Final Closing”) of a private placement offering (the “Offering”), whereby pursuant to the securities purchase agreement (the “Purchase Agreement”) entered into by the Company and an accredited investor on November 19, 2020 (the “Investor”) the Company sold to the Investor 323,892 shares (the “Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”), for a purchase price of $1,538,487.00 (the “Purchase Price”). The Purchase Price was funded on November 19, 2020 (the “Closing Date”) and resulted in net proceeds to the Company of approximately $1.43 million. The aggregate gross proceeds to the Company from the Offering is $16,000,000.
Pursuant to the Purchase Agreement , the Company agreed, for a period of 90 days from the closing date, not to issue or enter into any agreement to issue any shares of common stock or common stock equivalents with the exception of certain exempt issuances as provided therein.
BTIG, LLC (the “Placement Agent”) acted as exclusive placement agent for the Offering and received cash compensation equal to 6% of the Purchase Price. In connection with the Final Closing the Placement Agent received warrants to purchase 9,717 shares of the Company’s common stock, at an initial exercise price of $4.75 per share, subject to adjustment for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction (the “PA Warrants”). The PA Warrants expire on November 19, 2025 and may be exercised on a “cashless” basis.
$CVLB
Eric H. Yecie
https://www.hklaw.com/en/professionals/y/yecies-eric-h
I am NOT a day trader but i can see the same thing. Upward pressure is building up. It's matter of any positive material PR for this stock to jump to 12-15 cents.
Noble Prize-winning Graphene Provides an Advanced Alternative to Traditional Filters
To address this market demand, G6 has developed and is commercializing a unique and proprietary filtration system to eliminate not only fine particulate matter but also volatile organic compounds and pathogenic microorganisms like fungal spores, bacteria, and viruses. Graphene is a perfect material for this task. On top of its Nobel-Prize winning physical properties, graphene also possesses extraordinary antimicrobial qualities. There is strong scientific evidence that graphene coatings can deactivate or destroy viruses and bacteria through effective capture followed by their physical and chemical disintegration. Further, the Company’s air filtration materials undergo testing that includes an internal and third-party examination.
And this is why their air filtration products are selling. Because they also destroy all the pathogens.
G6 Materials: Knowing the Top Brass
2016-03-02 14:40 ET - News Release
GRAPHENE 3D ANNOUNCES NEW CHAIRMAN OF THE BOARD
Graphene 3D Lab Inc. has appointed John (Gary) Dyal as chairman of board of directors, effective immediately.
http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aGGG-2351263&symbol=GGG®ion=C
Mr. Dyal is a recognized leader in the commercialization of nanotechnology and graphene-related products. He brings over 35 years of manufacturing and technology experience to the company. Mr. Dyal currently serves as vice-president of Cryo Pure Corp., an international company that packages and distributes industrial/ultrahigh-purity specialty gases, chemicals, cryogenics and cryogenic chemical delivery equipment. Prior to his co-founding of Cryo Pure, Mr. Dyal was the director of marketing and sales for CVD Equipment Corp., a company that designs, develops and manufactures a broad range of state-of-the-art graphene manufacturing equipment and process solutions for research and industrial applications. Mr. Dyal was responsible for global sales of research and development products related to graphene, carbon nanotubes, semiconducting nanowires, 2-D materials and thin films for research laboratories.
Elena Polyakova, co-chief executive officer, remarked: "We are delighted to have attracted Gary to our board where he will immediately assume the role of chairman. In the past, our senior management team has worked with Gary, and we can attest to the breadth of his knowledge base and expertise. We look forward to working closely with him."
Mr. Dyal said: "I am honoured to have been invited by the board to become Graphene 3D's chairman and to help contribute to the overall vision and strategy of the company. It is a great business, with great leading-edge products in an emerging, fast-moving industry. I am looking forward immensely to working together with my fellow directors."
In addition to his role as chair, Mr. Dyal will serve on the company's audit committee. Mr. Dyal replaces Jason Martin who has left the board to continue his focus as president and CEO of iotum, a global communications service provider. The company wishes to thank him for his valuable contributions over the past year.
Roman Rabinovich - Director
A member of the Audit Committee of G6 Materials Corp. Mr. Rabinovich also serves as a Senior Director at FTI Consulting. FTI Consulting is one of the largest business advisory firms in North America, providing advice and services which include, but are not limited to, business restructuring, mergers and acquisitions and business performance improvement. Mr. Rabinovich has tremendous experience in strategic development, transaction advisory, litigation support and business restructuring engagements. He specializes in the analysis of corporate finance and building optimal pricing strategies to improve sales growth.
Robert Scott CA, CFA, CFO
Mr. Rob Scott serves as Chief Financial Officer of G6 Materials Corp. Mr. Scott has over 20 years of professional experience in corporate finance, accounting, and merchant/commercial banking. He also serves as the CFO of Riverside Resources Inc. (TSXV: RRI) and Nickel One Resources Inc. (TSXV: NNN) and is a board member of Genesis Metals Corp. (TSXV: GIS) and Mongolia Growth Group Ltd. (TSXV: YAK). Mr. Scott earned his CFA in 2001, his CA designation in 1998, and has a B.Sc. from the University of British Columbia.
The CEO seems decided to capitalize on this opportunity
G6 Materials Provides Business Update
Focusing on air purification products, plus debt facility and stock option grant
Ronkonkoma, New York, USA - TheNewswire – October 21, 2020 - G6 Materials Corp. (“G6” or the “Company”) (TSXV: GGG, OTCQB: GPHBF), a technology company and world-leader in creating value through innovative graphene-based solutions, is pleased to provide the following business update regarding G6’s ongoing sale of air purification products, its recently announced debt facility as well as the board’s grant of stock options.
Air Purification Products
This year, the Company’s research and development team developed a graphene-based technology to create a proprietary, enhanced air filtration system (the “Enhanced Air Filtration System”). Subsequently, a provisional patent application was filed to protect the intellectual property (“IP”) rights for this technology.
Throughout the process of bringing the Enhanced Air Filtration System to market, G6 will strive to provide timely updates to shareholders and stakeholders in accordance with the following milestones:
• Completing product design
• Awarding the manufacturing contract
• Receiving the hardware and chemically processing the graphene-based materials
• Generating initial revenues from these products
• Leveraging this IP into licensing arrangements, research projects, etc.
Another old one but a good one. Validation of the G6M leaders.
Graphene 3D Lab is invited to present at Inaugural Graphene Innovation Summit by the National Graphene Association
October 30, 2017 – Calverton, NY – Graphene 3D Lab Inc. (TSXV: GGG, OTCQB: GPHBF) (“Graphene 3D” or the “Company”) is pleased to announce its plans to showcase its recently developed materials at The National Graphene Association’s Inaugural Graphene Innovation Summit and Expo. The conference is being held in Nashville, TN., from October 29-31, 2017. The company will be presenting its high-end graphene based conductive adhesives as well as other Company products, including: graphene aerogels and graphene-based 3D filaments at the Exhibition. Graphene 3D’s Co-CEO, Elena Polyakova, will deliver a presentation titled “An update on development of graphene-enhanced composite materials” from 2:10-2:30 PM., on October 30. Polyakova will also participate in a Roundtable Discussion titled “Graphene: Practical Questions” 9:55-11:20 AM on October 31, and a panel discussion titled “Graphene Supply Market” from 11:40-12:10 PM on October 31.
member of the Advisory Board of National Graphene Association. This Meeting in Nashville is the first large scale event organized by NGA and our team is delighted to be a part of this event. We are excited to showcase our graphene materials and express our visions during panel discussions.”
True pioneers. But I have been reading more news lately about graphene that suggest that this extraordinary material is starting it's adoption process.
JMHO
GLTA
November 21, 2016 --Calverton, NY -- Graphene 3D Lab Inc. (TSX-V: GGG, OTCQB: GPHBF) (the "Company") and Stony Brook University ("Stony Brook" or the "University") are pleased to announce that they have entered into a Memorandum of Understanding ("MOU") to collaborate with the University's divisions of Center for Integrated Electrical Energy Systems ("CIEES") and Center for Advanced Technology in Sensors ("Sensor CAT"). The joint research will aim at developing technology for a light-weight lithium-ion battery pack with the intended use for aerial drones and mobile robots. Graphene 3D will supply advanced carbon nano-composites materials to CIEES needed to manufacture and test lithium-ion electrical batteries. The Company will also have access to the CIEES facilities to perform structural and chemical analysis for quality assurance measurements.
"There is a strong need for a light, safe and long lasting battery, especially for such emerging technologies as unmanned aerial vehicles and mobile robots. Using graphene in the formulation for the electrode compound of the lithium-ion battery, greatly enhances the battery performance." said Graphene 3D co-CEO Daniel Stolyarov. "We anticipate that the demand for our graphene materials will substantially increase in the energy storage market. Working together with research groups in the University and utilizing their state-of-the-art research facilities allows the Company to complete R&D in a very cost effective manner as well as shorten the product development time."
And check: 760 Koehler Ave., Ronkonkoma, State of New York for G6 Materials new address.
About 12km away.
I am just hoping that management executes well on this unique opportunity and get a good financial foothold for the next 3 years to develop other opportunities.
The HGE (Hydrogen generator electrodes] opportunity looks very doable to me but it will take at least another 6 to 9 months. What I like about this specific opportunity is that the partner has an established market already. And it seems to be big enough. Check the following:
https://g6-materials.com/hydrogen-fuel-cell-renewable-energy/
Did you know that G6M is partner of the Stony Brook University Electrical Engineering department since 2017 and it’s 5 minutes away from it’s headquarters???
Also: G6M has completed 2 R&D partnerships successfully in the past 2 years. I think there is some credit in that. These people are scientists and I don’t think they will take on a challenged if they don’t feel they can find the solution. But that’s just my intuition talking.
The balance sheet just got updated. Check the latest SEC filing.
You sure are a Happy guy these days. Making it to the nasdaq will be an accomplishment from where you are coming a few years ago.
And yes, you need the full combo of products, technology and savvy marketeers to make it to the big boards and CVLB have the whole thing.
I always pay special attention to the business model of the company I am interested in, and I have to say that I have never seen such an explosive business model yet with a low capital need. Blowing up to $40MM in sales form an original $4MM in 4 years, that's impressive. Recycling the gross margin made into the sales & marketing (as long as the UE indicators are right) to grow the subscribers base and gaining recurring revenue along the way until it sustains itself is just the main of the new technologies. Everybody in the value chain wins including the customers.
ARR grew 14.51% MONTH OVER MONTH. And 15.39% MOM average in the months of August through October.
If this rate persist for a year, let's reduce it to 12.5% MOM. That means a RR (recurring revenue) of $7.57MM for the month of October next year or an ARR of $90.84MM with far less effort to acquire new subscribers.
And why is the ARR so important?
1. It's higher margin revenue, and
2. Well this number is related in calculating "customer lifetime value" (CLTV) in the formula
For a better copy (PDF) of the 10-Q
https://seekingalpha.com/symbol/CVLB/sec-filings
"We do not believe that we will need to raise equity to support our growth following this financing. I can’t say that we will never sell equity again, as this might make sense for our shareholders if our share price were to appreciate significantly. Our plan, which we’ve already begun to execute on, is to use non-dilutive sources of capital to finance our patient and customer acquisition efforts. And we believe that given our proven unit economics and relatively quick cash-on-cash return, this is very doable."
"In the past quarter, we launched Rex MD our streaming TV and saw a very promising results. This week, we are launching additional creative for Rex MD on 16 national networks and we are extremely optimistic about this traffic for us. We think that there is a big offline opportunity for our telemedicine brands, and we plan to exploit this over the coming quarters. We expect our call center operation in South Carolina to be a major growth driver for Conversion Labs going forward, within just the first 60 days of operations is dramatically reducing our customer acquisition costs. We believe that also will dramatically improve the experience of our patients, which will have a positive impact on customer lifetime value."
NasdaqCM possible uplisting within 2 weeks as expected. NO plans to diute the company any further. Future funding (once in the NasdaqCM) will come from non-dilutive sources since the cash on cash return of the business model is very good. If and very possible.
"internal customer's service and sales team. We leased space for 400 &%$&% and have already hired 40 representatives that have been doing a great work for the past 60"
with tremendous positive feedback
Just check the radical increments that the TTM revenues (And with that the stock price) will experience if this uptrend persists. We need a couple more quarters of revenue growth for confirmation but we will have a better idea by the end of January when the 2Q21 results come out.
If the last debt facility is any indicator, it seems like the company is expecting a good positive cash flow for this fiscal year. The loan term reads "UP TO $1MM" and with a very small 5% annual interest rate. Normally 12-17% for small startups. I don't think this money is for operations since the operation is already cash flow positive. It's probably for developing and marketing the new air purification units.
Also, NO LT debt and a controlled SM&G expense ratio (to revenue).
An incoming $117K payment from Singapore for this quarter helps.
This air purification revenue trend needs confirmation in the next couple of quarters. I just hope management do not miss this opportunity. Revenues could easily grow 5X this year if and only if the trend is real....and profitably, a huge plus.
JMHO
CVLB's management has covered all the basic things to be uplisted to the NasdaqCM:
3 years sales average
2Q21 by January 28 or 29 will tell if this is a real trend or not. Covid-19 can last another year but the fear caused by it will remain for years. Safe air filters is a market that will strive in the next 3 to 5 years.
It's a good opportunity for the company to acquire a good financial foothold while developing other verticals. This opportunity seems to be very real as long as management succeeds in the marketing arena.
The Co-CEOs are great scientists but they were lacking the sales and marketing expertise in the past. It looks like things are changing.
JMHO. Do your own DD for as far in the past as possible. I don't regard them as false promoters. And the technology is still in the adoption stage. It's still a few years away from mainstream. But this could be great start or a good opportunity to acquire a position.
I am liking what I am seeing in the last couple of quarters. The best I have seen in the past 4 years.
Go-to Market Strategy Page 16
Three-Pronged Approach
Proprietary Hardware & Consumable Filters
Consumable Filters for Third-Party Hardware Industrial Air Purification
The Company is working to develop its own line of air purification units with a proprietary consumable filter system.
G6’s proprietary filters will be designed to be compatible with many third-party air purification units in the market today.
The Company is also working to develop an air purification solution for HVAC systems in industrial and other large-scale uses.
https://g6-materials.com/wp-content/uploads/2020/11/G6-Materials-IR-Presentation-Nov2020.pdf
The financials are screaming an uptrend in sales, NO LONG TERM DEBT (for a long time up to date) and profits ahead.
And only a real company gets a debt facility like the one they just got. Just saying...
And here is where the Ex-CoCEO Elena Polyakova has been for the past couple of years: In Singapore
August 17, 2020 – Ronkonkoma, NY – G6 Materials Corp. (TSXV: GGG, OTCQB: GPHBF) (“G6” or the “Company”) is pleased to announce that its has finalized the research and development project to develop graphene-based composite materials for marine vessel applications (the “Project”) with a private Singaporean company (“Partner”). The Partner has accepted G6’s final research report and the Company expects to receive a final payment from the Partner of approximately $117,500 US Dollars, or $161,400 Singapore Dollars. During the Project, G6 successfully developed two formulations for graphene-enhanced resins for fiberglass and carbon fiber marine composites.
Should show in the net Q maybe??? Just a hint...
According to various test results, the graphene-enhanced formulations demonstrated tangible advancements compared to conventional materials. In addition to the improved strength of the resin, the graphene-enhanced epoxy shows a 14-fold improvement of the fracture toughness. The new material exhibited 20% less water absorption and the fiberglass composite’s fatigue resistance was increased 3-fold, thereby making the service life of the new material longer than other formulations currently used in industry. The developed formulations were subject to extensive testing done in the Company’s lab, through third-party performance evaluation of the composite materials as well as via field testing conducted at the Lungteh Shipbulding shipyard.
This concludes a two-year research effort to develop graphene-enhanced marine composites. “We are very happy that this research project has come to a successful conclusion. We have developed materials with superb performance and are eager to start offering them to our customers,” said Daniel Stolyarov, President & CEO of G6. “Not only can the marine industry benefit from using these graphene-enhanced formulations, but these materials can also be used for applications in the construction, automotive and green energy industries,” added Mr. Stolyarov.
Pursuant to the agreement between G6 and the Partner, the intellectual property rights will remain with the Partner while the Company has a non-exclusive license to use the formulations for commercial purposes. The Partner is entitled to a four per cent royalty on the sales of the materials generated by the Company, subject to the final use of the materials being in the field of marine vessels or marine structures (the “Field of Use”). The Company is free to sell the materials without making any royalty payments outside of the Field of Use. The Company and the Partner are exploring the possibility of building a prototype boat to evaluate the performance of the materials in a real-life environment.
October 1st, 2020
G6 Materials Reports 2020 Annual Financial Results Results feature record quarterly revenues in 4Q20, which increased by 2.4x over 3Q20
Financial Highlights
? Revenue for the fourth quarter ended May 31, 2020 reached a record level of $406,684, which is a 2.4x increase from the $169,237 reported for the third quarter of 2020 and a 2.0x increase from the $206,609 reported for the same period of the prior year ?
? Revenue for the year ended May 31, 2020 was $922,614, which is similar to the $946,834 reported in the previous fiscal year ?
? Comprehensive loss for the fourth quarter ended May 31, 2020 was $251,168, a 11% increase from the $226,213 reported for the third quarter of 2020 and a 248% increase from the $72,212 reported for the same period of 2019 ?
? Comprehensive loss for the year ended May 31, 2020 was $1,002,112, a 69% increase from the $601,565 reported for the same period of 2019 ?
? Total assets for the year ended May 31, 2020 increased by 9% to $1,165,686 from $1,066,851 for the same period of last year
?
Corporate Highlights
? Marine Composite Project: As previously announced, the Company entered into a research agreement with a Singapore-based firm to develop a graphene composite for marine vessels. This project was mostly completed in the fiscal year of 2020, which the Company reported as complete in August of 2020. While working on this project, the Company developed two composite formulations using graphene additives with carbon fiber and fiberglass that provide a 14-fold improvement of fracture toughness and a 3-fold improvement of fatigue resistance. These results were reported in an event at Capitol Hill (Washington DC, USA) and at the TechConnect World Innovation Expo. Detailed technical specifications can be found at the Company’s web site.
? Pharma Project: In October of 2019, the Company was granted a patent from US Patent Office for its proprietary technology involving the synthesis of trifluoroketones, which serves as a key intermediate step in the synthesis of a drug under development by the Company’s pharmaceutical industry partner. This drug is being tested for the treatment of certain lung conditions and, in June of 2020, the Company signed a licensing agreement with its partner. According to the terms of this agreement, in exchange for a US$220,000 payment the Company is providing a 2-year exclusive license and an option to purchase the IP rights for a fixed price of US$1,000,000. ?
? Air Purification Project: In the last quarter of the fiscal year, to address the demand for air purification products as a result of the global coronavirus pandemic the Company added a line of existing air purification products to its portfolio. Further, the Company’s research and development team developed a graphene-based technology to create an enhanced air filtration system. Subsequently, a provisional patent application was filed to protect the IP rights for this technology.
Outlook
Despite the global COVID-19 pandemic presenting society with numerous challenges in 2020, it has also created opportunities to identify areas for improvement, apply new technologies and make permanent advancements for the future. Based on G6’s recent success in selling air filtration and purification products to meet a surge in demand, the Company has continued to allocate resources in pursuit of this market opportunity. Management expects this positive trend to continue into the 2021 fiscal year and is working to develop a new line of proprietary, graphene-based, air filtration products to launch into the market. In parallel, G6 will continue to sell its legacy product lines and strengthen its portfolio of intellectual property through further research and development.
According to the 1Q21 results report, they are telling the truth. An uptrend in sales is evident.
November 2, 2020
G6 Materials Reports Record 1Q21 Financial Results Highest Quarterly Revenues Since Inception plus Positive Comprehensive Income
Financial Highlights (all amounts expressed in US Dollars unless otherwise noted)
? Revenue for the first quarter ended August 31, 2020 reached a record level of $1,169,426, which is a 188% increase from the $406,684 reported for the fourth quarter of 2020 and a 497% increase from the $195,928 reported for the same period of the prior year, which was primarily due to strong customer demand for the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement ?
? Gross profit for the first quarter ended August 31, 2020 was $426,608, a 925% increase from the $41,625 reported for the fourth quarter of 2020 and a 481% increase from the $73,469 reported for the same period of the prior year, which was also primarily due to strong customer demand for the Company’s air purification products and the receipt of a one-time payment as per the terms of a license and option agreement ?
? Comprehensive income for the first quarter ended August 31, 2020 was $110,765, as compared to the $251,168 comprehensive loss reported for the fourth quarter of 2020 and the $180,735 comprehensive loss reported for the same period of 2019, which was primarily due to reduced expenses in the areas of research and development as well as lower general and administration expenses from cost-saving initiatives ?
? Total assets for the first quarter ended August 31, 2020 increased by 26% to $1,472,872 from $1,165,686 for the fourth quarter of 2020 and a 39% increase from $1,057,297 for the same period of last year ?
Management Commentary
?“The first fiscal quarter of 2021 was a significant milestone for G6 as we generated our best financial results in the history of the Company. Overcoming the challenges of early 2020, strategically pivoting the business and successfully capitalizing on a new market opportunity are all key accomplishments as G6 continues to evolve and grow,” said Daniel Stolyarov, President & ?CEO of G6 Materials Corp. “I would like to express my appreciation for the great efforts of our team to achieve these record quarterly results, as well as my gratitude to all customers who purchased our air purification products. We are excited to bring graphene-enhanced air filtration products to market and further commercialize G6’s intellectual property in this area,” added Mr. Stolyarov.
Corporate Highlights (all amounts expressed in US Dollars unless otherwise noted)
? Air Purification Products: In the second half of the 2020 fiscal year, the Company added a line of existing air purification products to its portfolio to address the step-change in demand for air purification products primarily as the result of the global coronavirus pandemic. The sale of these products accelerated significantly during the first quarter of the 2021 fiscal year, which is evident in the Company’s financial results. Further, the Company’s research and development team developed a graphene-based technology for an enhanced air filtration system for which a provisional patent application was filed to protect the intellectual property rights. ?
? License and Option Agreement: On June 23, 2020, the Company entered into a License and Option Agreement with a US-based clinical-stage biopharmaceutical company. As per the agreement, the Company received a one-time cash payment of $220,000 by granting the partner an exclusive license to use the intellectual property for a period of two years. Further, the partner will also have an option to purchase the Company’s intellectual property rights for an incremental $1,000,000 during the license period.
? Debt Facility: The Company has entered into a loan agreement with an arm’s length third- party company, pursuant to which G6 can now draw up to an aggregate principal amount of $1,000,000 on an unsecured basis for a one-year term. Any principal amounts drawn under the facility will accrue interest at a rate of 5.0% per year. The loan can be used for general working capital purposes.
The company has operated without any long term or toxic debt for a while and their cash raises are directly performed without extra expenses. No unnecessary diluting seen for the past 5 years or as far as I can see. MG&A expenses have been under control. Take a look for the past 3 years.
Maybe a week after this meeting. Check this date’s filings for details.
__________________
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
A Special Meeting of the shareholders of Conversion Labs, Inc., a Delaware corporation (together with its subsidiaries, “Company”, “Conversion Labs”, “we”, “us” or “our”), will be held on Tuesday November 17, 2020, at 10 a.m. local time at 101 Wood Avenue South, 5th Floor, Iselin NJ 08803 for the purposes of:
1. Approving the Conversion Labs, Inc. 2020 Equity and Incentive Plan;
2. Ratifying the January 21, 2020 amendment to the Company’s Certificate of Incorporation to authorize the creation of blank check preferred stock, par value $0.0001 per share, the subsequent filing of the August 27, 2020 filing of the Certificate of Designation of Series B Convertible Preferred Stock, and the subsequent August 31, 2020 issuance of 3,500 shares of Series B Preferred Stock (collectively, the “Series B Actions”); and
3. Acting on such other matters as may properly come before the meeting or any adjournment thereof.
The foregoing items of business are more fully described in the Proxy Statement that is attached and made and made a part of this Notice. EXCEPT WITH RESPECT TO THE RATIFICATIONS (PROPOSAL 2) DESCRIBED BELOW, only stockholders of record of the Company’s common stock, par value $0.01 per share (the “Common Stock”), at the close of business on October 9, 2020 (the “Record Date”) will be entitled to notice of, and to vote at, the Special Meeting or any adjournment thereof. Our Board of Directors is submitting the Ratifications to the Company’s stockholders to eliminate uncertainty concerning the validity or effectiveness of the Ratifications as detailed below. The Ratifications are being submitted to stockholders pursuant to Section 204 of the Delaware General Corporation Law (the “DGCL”). Under Section 204 of the DGCL, stockholders of record as of November 18, 2019 (the record date of the January 10, 2020 Special Meeting at which the amendment to the Company’s Certificate of Incorporation to authorize the creation of blank check preferred stock was approved), other than holders whose identities or addresses cannot be determined from our records, are being given notice of the Special Meeting, but are not entitled to attend the Special Meeting or vote on any matter presented at the Special Meeting unless they were also holders of Common Stock as of the Record Date.
This notice and the attached proxy statement constitute the notice required to be given to our stockholders under Section 204 of the DGCL in connection with the ratifications contemplated by Proposal 2. Under Sections 204 and 205 of the DGCL, when a matter is submitted for ratification at a stockholder meeting, any claim that a defective corporate act ratified under Section 204 is void or voidable due to the failure of authorization, or that the Delaware Court of Chancery should declare in its discretion that a ratification in accordance with Section 204 of the DGCL not be effective or be effective only on certain conditions, must be brought within 120 days from the time a certificate of validation is filed with the Delaware Secretary of State and becomes effective, if applicable, or from the time the stockholders approve, if no certificate of validation is required. If Proposal 2 is approved, the Company expects to file a certificate of validation with regard to the filing of the Blank Check Preferred Amendment and a certificate of validation with regard to the Series B Designations promptly after the adjournment of the Meeting, and any claim that the filing and effectiveness of the acts so ratified are void or voidable due to the failure to receive the requisite stockholder approval at the January 2020 special meeting of the Company or that the Delaware Court of Chancery should declare, in its discretion, that the acts so ratified not be effective or be effective only on certain conditions, must be brought within 120 days from the time the certificates of validation are filed with the Secretary of State and becomes effective in accordance with the DGCL or, in the case of the issuance of the Series B Preferred Stock, within 120 days of the Special Meeting.
BY ORDER OF THE BOARD OF DIRECTORS
/s/ Justin Schreiber
Justin Schreiber
Chief Executive Officer and Chairman of the Board of Directors
October 13, 2020
PR...........has appointed Roberto Simon to its board of directors and as the chair of its audit committee. Following his appointment, the board now has eight members, with six serving as independent directors. --------------------------------
Nasdaq requirements:
Rule 5605 (c) The company is required to have an audit committee consisting solely of independent directors who also satisfy the requirements of SEC Rule 10A-3 and who can read and understand fundamental financial statements. The audit committee must have at least three members. One member of the audit committee must have experience that results in the individual's financial sophistication. -----------------------------------------------------------------------------
Rule 5605 (b) The company’s board of directors is required to have a majority of independent directors.
https://listingcenter.nasdaq.com/rulebook/nasdaq/rules/nasdaq-5000#nasdaq-rule_5605
Thanks for the post. They sounded very positive about this opportunity. The next few quarters must bring an even greater growth rate with this fresh capital influx. Looking forward to 2021 and beyond.
Conversion Labs Closes Initial Round of $15 Million Private Placement with Institutional Investors, Advances Toward Nasdaq Uplisting
NEW YORK, NY, November 4, 2020 — Conversion Labs, Inc. (OTCQB: CVLB) (OTCQB: CVLBD), a direct-to-consumer telemedicine and wellness company, has closed on approximately $14.5 million of a $15 million private placement with institutional investors at a purchase price of $4.75 per share. A second closing of an additional $500,000 is expected within the next seven days.
The net proceeds of the offering are expected to be approximately $13.7 million after deducting placement agent fees and other offering expenses. The company intends to use the net proceeds to expedite certain growth initiatives, including new customer acquisition, the development and launch of new product lines, as well as for general corporate purposes.
BTIG, LLC is acting as exclusive placement agent for the offering. This private placement follows an equity investment announced on September 16 that was led by a select group of sophisticated investors who have been helping to drive the growth of the company.
“This new funding by institutional investors represents a tremendous affirmation of our business strategy and growth prospects,” stated Conversion Labs CEO, Justin Schreiber. “It also helps to satisfy the capital requirements for our Nasdaq listing application. As the leading securities exchange for emerging growth stocks, we expect a Nasdaq listing to increase our corporate visibility and broaden awareness of our success in the financial community.
“The additional capital also enables us to accelerate several growth initiatives within the telehealth space, including the launch of new telemedicine brands and patient acquisition. Such launches include Nava MD™, a new teledermatology line for women that we announced last week.”
One of the lead participants in the private placement, the founder and CIO of Paradigm Opportunities, Corey Deutsch, commented: “The Conversion Labs team has done a tremendous job building the company into a leading player in the direct-to-consumer telemedicine space. We see Conversion Labs as having an extremely promising future ahead, as it continues to capitalize on the shift occurring in the healthcare ecosystem and the rapid adoption of telehealth.”
Yes, the behavior has been strange but the volume has been controllable too. I don't know if the company needs a more solid balance sheet, a good fiscal year report with a great outlook for 2021 or a new brand performing well.
But to try to manipulate the price at this very undervalued prices (IMO) would have to be done by an expert because I find it very risky especially after a couple of bullish articles starting to come out and the series of strong material PRs that have been coming out. There are also various positive catalyst including the Nasdaq uplisting.
I am also wondering what's really going on but we will find out eventually.
I would like for the price to rise above the $10.00 ($2.00 pre-split9 so that the CEO can perform any fund raise he needs at better terms.
My strategy right now is just to relax and wait until the FY2020 report comes out the last week of March and see what happens. Hopefully, the CEO will be able to get things done by then; the NasdaqCM, VeritasMD and the new NavaMD brand. The financials should look a lot better by then too.
JMHO.
PS. I hope the CEO buys more of the PDFSimpli business before the Nasdaq uplisting. At least another 24 to 30 %.
That's around $30.0 MM for Q2 2021. That's 3 quarter away from Q3's $11.2MM. Maybe the CEO is expecting a greater growth rate for the current brands once he has secured non-dilutive financing at the Nasdaq for customer acquisition. And good contributions from the new brand NavaMD. Seems high but he is not aiming low either. The message is clear....strong growth ahead and soon.
He is probably buying the other 49% of LegalSimpli, the SaaS business unit. That would be a smart investment and revenue contributor too. This business unit is also growing fast and sporting a 96%+ gross margin.
Q4 & FY2020 will be reported by the end of March and Q1'21 will be reported soon after that by mid May. April through June are going to be very interesting months for CVLB shareholders next year. The company should also be about breakeven or profitable by then.
The new NavaMD brand launch PR is telling us that management will seek accesible (and with huge TAM) health markets to penetrate with top of the line and scientifically proven technologies to produce build great brands. I really like this approach even if it takes some time to align all the things required to be successful.
I would not like to see them launch a new brand and then fail because something was missing in the equation. This is probably the reason why the company has several advisors in different medical fields of expertise.
This new brand seems very promising given the background of the person behind the new technology:
https://www.restorsea.com/about-patti
NEW YORK, Oct. 21, 2020 (GLOBE NEWSWIRE) -- Conversion Labs, Inc. (OTCQB: CVLB), a direct-to-consumer telemedicine and wellness company, has appointed healthcare veteran, Dr. Connie Mariano, to its board of directors. Following her appointment, the board will have eight members, with five serving independently.
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The new BOD appointee provides validation and more than fulfillment in board members serving independently. A requirement for the NasdaqCM listing.
Another step towards the Nasdaq listing for sure.
When using TTM sales for calculating the P/S ratio (Valuation) I found an average of above 20X for the peers. This includes 8 other companies: TDOC, LVGO, GDRX, OTRK, ONEM, HCAT and 2 canadian WLYYF and DOCRF. The group hast market caps ranging from $20B to $90M.
I found that the current average P/S, including CVLB, is above 20.
HIMS (Not included above) is being valued above 10X.
Anf for current P/S valuations the street uses shares outstanding and NOT fully diluted shares. The FD shares are used when there is a takeover bid or merger in play. Unless I am mistaken.
CVLB TTM (current and known) sales is $28.5MM.
IMHO the stock should trade at a range between 13 to 17 P/S (conservative) in a few months when the market becomes aware of it's potential and the fiscal year report comes out. hopefully we will be in the Nasdaq by then with great financing for rapid expansion.
PS: The number for P/S that I found for this industry peer average before the pandemic is 17. Just remember that few companies have a great and sustainable gross margin like CVLB. And all this cash and be recycled into new subscribers.
The company can turn profitable any day if management reduces the spend in S&M. But that will not be the strategy for a while. That cash generates more in the acquisitions of new subscribers right now. The unit ecomimics are great as far as I understand so reinvesting that cash is getting the green light.
GL and do your own check into these other companies.
What is the LTV/CAC Ratio?
LTV stands for “lifetime value” per customer and CAC stand for “customer acquisition cost”. The LTV/CAC ratio compares the value of a customer over their lifetime, compared to the cost of acquiring them.
This eCommerce metric compares the value of a new customer over its lifetime relative to the cost of acquiring that customer.
If the LTV/CAC ratio is less than 1.0 the company is destroying value, if the ratio is greater than 1.0 it may be creating value, but more analysis is required. Generally speaking, a ratio greater than 3.0 is considered “good” but that’s not necessarily the case.
chart of the LTV/CAC ratioChart: CFI eCommerce financial modeling course.
insert-text-here
What is the LTV/CAC ratio formula?
Below is the lifetime value to customer acquisition cost formula:
[(revenue per customer – direct expenses per customer) / (1 – customer retention rate)] /
(# of customers acquired / direct marketing spending)
Example calculation
An eCommerce company spends $10,000 on a Google AdWords campaign and acquires 1,000 new customers. The average revenue per customer is $50 and the direct costs of filling each order are $30. The company retains 75% of its customers per year.
Customer contribution margin = $50 – $30 = $20
LTV = $20 / (1 – 75%) = $80
CAC = $10,000 / 1,000 = $10
LTV/CAC ratio = $80 / $10 = 8.0x
In this case, the ratio is quite high and the company is profitably acquiring customers, assuming there are not a huge amount of fixed costs in the business.
I pay a lot of attention to the business model of the companies I am interested in. Conversion Labs is all about growing a subscribers base as fast as possible to grow the ARR. So investing aggressively in S&M, as long as the unit economics allows it, is the correct strategy. Eventually, the company will be able to upsell many new products and introduce new brands to this same subscribers base.
Also like you said, the subscriber base will introduce new & cost-free subscribers and become the better part of the revenue with better margins. It's a brilliant business model. The heavier part of the costs happens only during the first stages of launching a new brand.
To accomplish this the company developed it's own custom built platform VeritasMD, about to be fully certified and has a team of e-commerce, sales, customer service and finance experts. The financial results for the past few years demonstrates their capabilities. It seems like this is only the beginning.
Thank. We have heard of new products coming out but I did not imagine the size of the markets eve if they are global and NOT domestic. The US Market should be big enough until the company can pursue the global market.
There are several and very material take aways in that presentation. And the most important one is the growth of the recurring customer base. The business model alone supports a fast growth in revenue but when a new custom built platform, excellent customer service and very affordable services are included then we can expect a sustainable and fast growth. As soon as (and if) the company makes it to a better capital market, financing should become available to support growth for years to come.
I am expecting better gross margin QoQ and a negative 3 to 4 cents of EPS. Break even (or close to) in Q4 while maintaining an aggressive customer acquisition spend in sales and marketing. This spend is what fuels growth and some investors are seeing this as a negative impacting spend when it is not. It will probably start to trend back down to the 65% (of revenue) where it was during last year and Q1’20.
I like how everything is trending so far and hope everything plays out.
Check the TAM expansion plan to $135BILLION (Over 20X YTD) for the next 12 months on page 14. $47B just in this current quarter. This is more than 10X current TAM.
This is HUGE even if all the new products or brands are not as effective as RexMD, the business is SET TO GROW.
Just need to buy and be patient. The customer base expansion is confirming the fact. 10% in just one months and accelerating recurrent revenue proves it.
ARR is over 50% of the telemedicine business and growing. All high margin revenue.
The SaaS is picking up again to almost $2M for the quarter.
With fresh capital investment the business expansion will be a lot easier.
Expect 2,021 sales over $100M. And probably profitable with the gross margin expansion.