Victoria Lake Inc. (LVCA)

[HokieHead]

Yourist Reverse Mergers..

I was around when Imaging3 announced they were taking part of a reverse acquisition with GBI back in 3/19. That announcement stated that the incoming cannabis company had sales of $550,000 the prior year and it was going to be a 80%/20% split there as well. At the time IGNG had about 45m OS, below you can see what happened to the PPS the following month plus with the announcement, the price shot up from $0.01 area to $0.35 in no time. At $0.35 that was valuing the incoming merger at $16 million.

There were different circumstances with that merger when compared to LVCA. The Yourist’s did not own IGNG. To come public with GBI they had to inherit the Alpha and Bio debt that was coming with Imaging3. That caused the final merger share structure there to be a lot higher in the end. A lot happened there in 2019 I won’t get in to as I want to concentrate on LVCA but let’s look at GFPT now, at that $0.35 pre-merger it was valued at $15m, roll to now its valued at $21m, and reported 2019 revenues of $450,000, and has a lot in the pipeline.

Now I think LVCA is going to be a different Yourist beast. In this reverse acquisition with Budtrader the Yourist’s are already owners of the shell. Their original plan was to roll GBI in to LVCA but due to time constraints of LVCA being an alternative reporting company and GBI wanting a faster process with a company already an SEC filer GBI hooked up with IGNG.

Now a year later the Yourist’s are sitting on a clean shell, no debt (see below), and a SS that hasn’t changed in 5 years. In March they announce they are going to get LVCA up to speed with Form 10s, which is getting the shell up to SEC filing requirements. That tells you they are moving on something. Then in April they announce a licensing agreement with BudTrader, and now this week announce that BudTrader is using their shell to come public in.

Many differences in this merger imo. Yourist’s already own the shell, they currently have 70% outstanding restricted and who knows how many they own of the unrestricted, there’s no ticker debt and current set up is 80% to BudTrader, 20% to LVCA commons and then GBI gets 20% of the finalized merger.

Also looking below I found an chart of possibly BudTraders financials from 2017/2018. They clearly are not bringing on much debt, have revenues and are actually net income positive, they are not losing money. That’s huge. With all the names that signed on to the executive and advisory team I am guessing 2019 really grew and 2020s are going to be even bigger.

My conclusion is with all these variables they will be able to use the current LVCA SS for this reverse acquisition making these shares at $0.02 gold. With the current OS it would value the merger at $3.3m, with a maxed out AS worse case value is $5m. There’s no reason to think that BudTrader and it’s upside as a business model wouldn’t value it at anything lower than $25m minimum as a publicly traded company.