InvestorsHub Logo
Followers 246
Posts 2988
Boards Moderated 1
Alias Born 06/16/2015

Re: AJH92 post# 66113

Monday, 10/12/2020 5:51:52 AM

Monday, October 12, 2020 5:51:52 AM

Post# of 95386
Here's why SKDI / SFL Maven just became an awesome BUY in the sub-penny price range.

Until last week...

Over the past year, SKDI acquired 2 early stage companies with near zero initial revenue, and was intending to invest in them and grow to profitability. Hakuna, a specialty CBD products business, was thought to be good for immediate sales in a fast-growing sector. Numuni, Inc., was thought to have great potential for powerful exponential growth in value, though very risky until the initial launch may show sufficient market interest pointing to disruptive market share growth in the online advertising / website monitization space.

Funding for the new SKDI was very positive for investors, as the company had a Regulation A "registration alternative" in effect about a year ago that provided for non-toxic dilutive financing for operations over the past year. What does THAT mean?!?

First, it means the business was NOT funded by "toxic" convertible notes that have been known to run small companies into the ground throught the OTC market. The company has VERY LITTLE DEBT.

[ul]Second, it means there's a pretty clear and obvious explanation for why the pps was held in the narrow channel between .004 and .01 over the past several months. If the SKDI had any revenue from operations over the past several months, the pps would have had breathing room to run - and there were MANY opportunities where it was clearly ready to run - and WOULD have, had it not been for operational cash flow requirements (with no revenue to support it). This can be seen on the daily price-trade chart over the past 6 months very clearly. Every time there was any significant trade volume, PAUL came out to sell the Reg A shares, the proceeds of which were used to fund operations.

The shareholder benefits for the above-noted situation were 1) guaranteed funding without "toxic" (death spiral) dilution, 2) operations were able to conintue, toward seeing the new business model through (to hopefully see it succeed and make us all rich), and 3) operation were PAID FOR (like, pay-as-you-go), rather than accumulating massive debt in order to fund operations, such that sometime later shareholders might see their investments totally disappear again like the last 8000:1 reverse split.

We - those who have held the stock for more than a day or week - can now appreciate the above-mentioned benefits of the Reg A funding. The business model apparently did not flow evenly toward the successful outcome that Carl Grant had envisioned, but we're not left "holding the bag" with toxic debt on the balance sheet, and the share structure wasn't blown up in the process of "trying" the business model that apparently didn't work out... Hakuna was sold off to another issuer willing to invest further toward some successful outcome, and Numuni, which failed it's launch, was successfully unwound with little to no net impact to investors.

This is a case where the relatively new "Reg A" funding (this is a relatively new public "crowdfunding" option - from the 2015 JOBS Act - that has not been available to these small OTC penny stock companies until recently) has succeeded in providing a "decent" funding solution to a small public company that helped management to fund their business model without just totally screwing us retail "investors."

Reg A wiki:
https://en.wikipedia.org/wiki/Regulation_A#:~:text=Regulation%20A%20(or%20Reg%20A,the%20securities%20with%20the%20SEC.

So... Carl Grant did good by us. He tried, he saw that it wasn't going as well as hoped, so he pivoted. Funny, I saw "pivoted" in that press release title and thought, "what in the hell were you thinking, using that word?!?" But now it is very clear, it's exactly right. He did good by us retail investors, "killing it before it grows," but also finding a solid business replacement. I really LIKE this one a lot. Great revenue. Great USD alternative at a time when the (general stock) market is kindof questionable how long it will hold in this range. Crypto-currency is a possible hedge, precious metals are a possible hedge, but what SFL Maven specializes in is a sweet spot between investment hedging and actual consumer market demand for value-stabilized luxury goods that many see as a investment hedge that they can touch and feel (some call it finger-f*ing gold, believe it or not).

So why is SKDI an awesome BUY opportunity right now?!? -

1) Great Revenue!

2) Reg A offering expires Monday (that's today, 10/12/2020). That 10M avg trade on Friday? That was the Reg A seller dumping the LAST CHEAP SHARES on Friday at 14:02:38 (EDT). That's it. THAT Reg A that's been holding the price down for 6 months. THAT Reg A that sold off last week because of the expiration and completion of the Reg A "alternative registration" for SKDI. No More Cheap Shares for the Reg A.

3) No R/S, as stated by the new CEO: "At this time though, I see no reason to apply to FINRA for a reverse stock split. We still have a very tight public float and a loyal shareholder base. My focus will 100% be on revenue growth for the remainder of 2020." (He could have added... "Next year, we may consider an R/S for the purposes of uplisting to a premium exchange if/when we are successful in 'xyz' but first things first, we'll focus on high growth, the name and ticker change, etc." But we will likely hear more about the big picture plans down the road not far off.)


Sun Kissed Pivots Direction and Acquires 'Luxury' Enterprise with $11M in 2019 Revenue
https://www.newsfilecorp.com/release/65200/Sun-Kissed-Pivots-Direction-and-Acquires-Luxury-Enterprise-with-11M-in-2019-Revenue
October 5, 2020

Sun Kissed Announces Streamlining to Focus on Strong Growth in High Revenue Segment
https://www.newsfilecorp.com/release/65488/Sun-Kissed-Announces-Streamlining-to-Focus-on-Strong-Growth-in-High-Revenue-Segment
October 8, 2020

Sun Kissed Introduces New CEO in MoneyTV(TM) Interview
https://www.newsfilecorp.com/release/65584/Sun-Kissed-Introduces-New-CEO-in-MoneyTVTM-Interview
October 9, 2020

Sun Kissed Introduces New CEO in MoneyTV(TM) Interview
New York, New York--(Newsfile Corp. - October 9, 2020) - Sun Kissed Industries Inc. (OTC Pink: SKDI) ("Sun Kissed", "SKDI"), (www.sunkissedindustries.com) a leading provider of high-end luxury goods, is pleased to announce that Joseph Ladin, the CEO of SKDI's subsidiary SFL Maven, Inc., ("SFL Maven" or "SFL"), (https://bit.ly/34lQgHH) is to become CEO of the Company effective Monday 12th October.

Joe Ladin commented, "I've joined the company at a really interesting time in its journey. It was clear that the company needed to re-focus on serious revenue generating business, to divest itself of non-core businesses and to deliver shareholder value; that's what we have now done. SKDI will report millions in topline revenues this year, the first time in its history. Our 'Reg A' expires on Monday and we now have time to focus on a corporate re-brand and a name-change. At this time though, I see no reason to apply to FINRA for a reverse stock split. We still have a very tight public float and a loyal shareholder base. My focus will 100% be on revenue growth for the remainder of 2020."

The Company announced earlier this week that it had streamlined its operations to drive greater focus on high value, high revenue segments. The centerpiece of this focus is to be the Company's recently acquired high-end jewelry business, SFL Maven ("SFL Maven" or "SFL"), ( https://bit.ly/34lQgHH) which brought in sales of nearly $11 million in 2019 and over $122 million since 2004.

In a MoneyTV™ interview released today, Joe Ladin outlined not only where the company had come from, but also discussed the future growth plans for the business and went through the nearly $6m the company had written in revenue already in 2020. The interview is available for download from here: https://vimeo.com/466211275

SFL Maven has been a consistent performer in the high-end jewelry space. In 2019, SFL drove revenues of $10.8 million, followed by nearly $4 million in sales during the first half of 2020, and an extremely strong start to the second half of the year, with robust performance in its quarter ended September 30 (updated numbers will be available for release shortly).

About Sun Kissed Industries, Inc.
Sun Kissed Industries Inc. (OTC Pink: SKDI) is a provider of high-end luxury goods to discerning clientele around the globe. They have recently pivoted away from emerging markets and are now focused on revenue generating acquisitions.

FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements, including information about management's view of Sun Kissed Industries Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Sun Kissed, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on Sun Kissed's future results. The forward-looking statements included in this press release are made only as of the date hereof. Sun Kissed cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, Sun Kissed undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Sun Kissed.

SOURCE: Sun Kissed Industries Inc.
https://sunkissedindustries.com/

Contact:
invest@sunkissedindustries.com