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Monday, 03/20/2017 10:42:17 AM

Monday, March 20, 2017 10:42:17 AM

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SeeThruEquity Analysis Report on Reign Sapphire Corporation (RGNP)

http://stockpumpers.blogspot.com/2017/03/seethruequity-analysis-report-on-reign.html

Headquartered in Beverly Hills, CA, Reign Sapphire Corporation (OTCQB: RGNP, "Reign") is attempting to build a new premium consumer brand in the jewelry sector focused on ethically-processed, Australia-mined sapphires. The company is pursuing this with a unique approach to the supply chain supported by an intriguing technology-driven consumer marketing program. Successful execution would position Reign as what management has called the "world's first vertically integrated source to retail model" for sapphire gemstones and fine sapphire jewelry. As part of the consumer strategy, Reign plans to leverage technology acquired in a recent acquisition, as well as its supply chain, where it purchases rough commercial sapphires in bulk directly from commercial miners in Australia, and then control the supply at each step along the way to retail, enabling the company control over quality, costs and design. In our view the strategy is intriguing given what appears to be an underrepresentation of sapphires at retail in the US jewelry market – only 8% of total sales include colored gemstones and the potential financial and quality benefits that could be achieved by controlling the process from the miners-gate to retail.

Highlights from the report are as follows:

Reign to acquire Coordinates Connection, Inc.

On January 9, 2017, Reign CEO Joseph Segelman issued an update to investors in which he outlined recent developments at Reign, including the recent announcement that Reign acquired custom jewelry company Coordinates Collection, Inc. ("Coordinates Collection"), a transaction that closed on December 1, 2016. Headquartered in Los Angeles, California, Coordinates Collection is a customized jewelry company founded in 2012 by Owen Devries.

Coordinates Collection's flagship product line includes rings, bracelets, and necklaces that display the latitude and longitude of places of significance to the customer. Products are made from precious and semi-precious metals and stones, as well as ceramic coatings. Coordinates Collection is predominantly sold through online channels (90%), and also has wholesale distribution with an international retail presence in Dubai. Importantly, the deal is expected to add a differentiated technology enhancing the company's data driven approach to marketing.

Coordinates Connection adds revenue-generating platform


Reign sees a key advantage of the move to acquire Coordinates Connection as the addition of a revenue-generating, online consumer technology platform. Indeed, the acquisition provides Reign with an established online consumer sales platform, which management sees as being synergistic with Reign's mine-gate to consumer model. Coordinates Collection also brings revenues scale, with sales primarily through online sales last year, according to the acquisition announcement. Terms of the deal included the issuance of 7mn shares of Reign, and a cash payment of $500,000, contingent upon a future offering, as well as earn-out payments based on the performance of certain agreed on products.

Target unchanged at this time

We are leaving the price target for Reign unchanged at this time. Reign is still an early-stage developing company with an intriguing approach to a large market, with resulting risks and opportunities. Our expectation is that we will learn more about the company's ability to execute on revenue growth during calendar 2017.

About Reign Sapphire Corporation

Based in Beverly Hills, California, Reign Sapphire Corporation (OTCQB: RGNP) is a fully-reporting, DTC-eligible company, originally established as a "source to retail" model for fine Australian sapphires - rough sapphires to finished jewelry, a color gemstone brand, and a jewelry brand featuring Australian sapphires.

Reign Sapphire Corporation now includes Reign Sapphires, Le Bloc Jewelry, and Coordinates Collection.

Visit Reign Sapphire Corporate Site: https://www.reignsc.com/

More Ways to Reign

It's not just about sapphires, but the moments the precious gemstones represent. Reign Brands focuses on elevating products into personal keepsakes that are built on quality with a unique, customized point of view.

Reign Brands

Reign Brands, including Le Bloc and Coordinates Collection, combine quality craftsmanship and timeless designs to provide a personalized shopping experience to commemorate life's most memorable moments.

Visit LeBloc Jewlery: https://www.leblocjewelry.com/
Visit the Coordinates Collection: https://www.coordinatescollection.com/

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