Tower One Wireless Corp (TOWTF)

[gjervis]

Doubled my holdings this week
Doubled my position this week as the math was too tempting. My resoning is below.

And that was just based on figuring out its potential BV on 75 towers at most by end of June.

My quick math is based on the Investor presentation.

they value two ways

3 times the cost of constructing a tower - 3 * 70000 = $210,000/tower
or 15 times cash flow of tower (collocation makes the tower more valuable)

last news release has them at 40 towers of which 11 are collocated. so, the value is

29 single client towers * 210,000 - 5.22M
11 double client towers * 15 * 2 * 12000 = 3.96M

TO as of last news release is worth at least 9.18M, divide that by 92M diluted shares gives a value of US$0.09/share.

This news release was back in March 2018, in it it also said 15 towers were under construction, it could be safe to say that they should have 55 towers completed by now, i will assume no additional collocation

44 single client towers - 7.92M
11 double client towers - 3.96M

my value assumption based on 55 towers is 11.88M/92M shares = US$0.13/share.

Moving forward, they got 2.1M from the warrant exercise, this could build out 2.1M/75000 = 28 towers. However, lets say they just build 20 additional towers with the funds, that would bring us to 75 towers in the near future, assuming that we still have 11 collocations, then

64 single client towers - 11.52M
11 double client towers - 3.96M

Assumption based on 75 towers is 15.48M/92M sahres = US$0.17/share.


This doesnt include the aquisition of the mexico company released today, i have no idea how many towers it has. i didnt include the shares they used to aquire this company today either.

This is why i doubled my holdings this week, the company BV is growing rapidly, and they should be able to build out 75 towers on equity and personal debt which i believe the cash flow from these 75 towers can pay back comfortably.

This valuation assumes only 11 collocations so far and also assumes only two clients are on the collocated towers.

This does not value the TCTS company they plan to spin out either.

Read more at http://www.stockhouse.com/companies/bullboard?symbol=c.to&postid=28054749#ka0lMOlFQ10DLcRv.99