ProText Mobility Inc (TXTM)

[strippa]

TXTM DD Pack

TXTM seems to have a lot going on in the background. I've attempted to put some of the information together in one place to make it easier to find.

**Reposting this DD pack for new investors - originally posted Jan 4th**

Link to Google Doc: https://drive.google.com/file/d/1T8qz337l0JMVEw7ss1fr8ubng7rQr-5Q/view

Key points:

- MJ stock mainly concentrating on medical cannabis
- Joint venture with RSAMMD to use TXTM's live extraction tech
- TXTM's technique apparently increases bioavailability 15X
- R&D and testing complete and successful
- RSAMMD has a 20 sq. mile hemp farm - largest in the world
- RSAMMD has hinted at FDA approval
- Plenty of pictures/videos of farm and products


Quick summary:

TXTM has a Joint Venture (JV) partnership with RSAMMD to test and commercialize medical grade cannabis products using TXTM’s proprietary extraction technology from live cannabis and hemp plants. This extraction technology is said to improve absorption and bioavailability of the product up to 15x. They have been working together for almost a year now. Lab testing of samples has been completed and it looks like they are slowly ramping up production and finally in the position to bring a product to market. See below for details. RSAMMD’s recent tweets have been very optimistic and ambitious – calling for multiple MMJ off-takes and one of the largest cannabis operations in the world.


1) Company info

Website (RSAMMD) - https://rsammd.co.za/
Twitter (TXTM)- https://twitter.com/protxtm
Twitter (RSAMMD) - https://twitter.com/RSAMMD
Facebook - https://www.facebook.com/RSAMMD
Instagram (RSAMMD) - https://www.instagram.com/RSAMMD/
Instagram (CEO Dylon Du Plooy) - https://www.instagram.com/teamcannabissouthafrica/ - he regularly posts Instagram stories about the operations which aren’t available on other platforms like Twitter




2) Share structure

SS - https://www.otcmarkets.com/stock/TXTM/security
2018 10K - https://backend.otcmarkets.com/otcapi/company/financial-report/214950/content
- SS was updated last in July 2020
- 10 B A/S, 4.5 B O/S
- Float (Held at DTC) around 4 B
- Company has not increased A/S since 2014
- O/S has increased a bit over the years, but this is mostly from debt being paid off using shares
- More assets than liabilities – always a positive, especially for a trip 0 stock
- One key thing to note here regarding convertible notes – looks like the company negotiated in December 2016 with all existing noteholders that future conversions will not involve any discount off the trading price of the stock when notes are converted into shares – this will encourage converting parties to hold their shares until the stock price goes up instead of dumping as soon as they get their shares


3) JV with RSAMMD

April 30: Letter of Intent with TXTM

https://finance.yahoo.com/news/republic-south-africa-medical-marijuana-200100995.html


May 7: Successful testing results




https://finance.yahoo.com/news/republic-south-africa-medical-marijuana-130000449.html




July 3: Announcement of Director for new JV company




Nov 2: ‘Dr’s Choice Global’ possible name for new company




Nov 4: More updates hinting at FDA and EUGMP (EU version of FDA) approval




Nov 27: Grand plans in the making






4) Dr’s Choice link with CYIOS

- Dr’s Choice brand is currently a part of Choice Wellness Brands which is a subsidiary of CYIOS corp. (OTC: CYIO)
- This is the same logo seen on RSAMMD’s website
- I am thinking CYIO could be a 3rd partner here
- One possibility - TXTM provides the proprietary extraction tech, CYIO provides the Dr’s Choice brand name, RSAMMD handles the production, licensing, and distribution

https://choicewellnessbrands.com/drs-choice-cbd/




https://rsammd.co.za/drs-choice/





5) Retail partners

No official details on this so far. Not sure if RSAMMD plans to provide their CBD to these companies to use in their products or if they are simply planning to procure these products and distribute them. Important thing is that these are big brands in the CBD industry and is further proof that there is something big going on here.

Lowell Smokes:
https://www.lowellfarms.com/cannabis






KIVA:
https://www.kivaconfections.com/

Mr. Moxey’s:
https://www.mrmoxeys.com/

[img]http://investorshu
b.advfn.com/uimage/uploads/2021/1/4/cbjnjt16.png[/img]


6) Dr. Ahmed Jamaloodeen

- He is the apparent Director of the new JV company formed between TXTM and RSAMMD
- He is also the National Treasurer for the CDCSA (The Cannabis Development Council of South Africa)
- He is basically one of the people in charge of the entire cannabis industry in South Africa!
- His stature and position should definitely help to ease the headaches with government agencies in terms of licensing and distribution
- He also apparently owns the largest cannabis farm in the world – and this is one of the farms being used to produce cannabis for RSAMMD and TXMT
- The scale is HUGE! 5000 ha is 50 sq km or 20 sq miles – making it the largest commercialized cannabis sativa farm in the world
- If TXTM extraction technologies are going to be used for this entire farm, that is a game changer!

https://www.timeslive.co.za/news/south-africa/2018-12-19-kzn-farmer-grows-1000ha-of-cannabis-but-you-cant-smoke-it/


7) Beautiful chart

- The TXTM daily chart is beautiful – very steady increase since the start of 2020
- Notice that volume has been very low
- Most days volume is less than 50M (only two days with 200M+ volume the whole year)
- This stock has not yet gained widespread attention
- Despite having a 4B OS, I’ve noticed over the past few weeks that it trades very thinly – there seem to be only around 30 – 40M at the ask at each tick
- If we have a huge volume day, this could quickly take off




Things to note:

- In my opinion based on all the evidence we have so far, it points to something big in the works

- RSAMMD has big plans (including becoming the largest cannabis supplier in the world) and TXTM proprietary extraction technology is crucial to their needs

- Volume is very low in this stock
o Increased exposure and awareness should fix this and bring more liquidity

- OS is 4 Billion - not terrible for a trip stock, but still fairly big
o We’ve seen plenty of other stocks with bigger OS take off (some without any catalysts or DD)

- TXTM has been Dark for the last 2 years and not reporting financials
o If you look at the company’s Twitter for the past 2 to 3 years, you will notice that they have been trying to get a cannabis license in South Africa and trying to get set up, but ran into numerous challenges and delays
o This can be expected in a new industry with constantly changing rules around the production and consumption of cannabis
o The company did try to get ahead of itself and probably thought the entire process would be much easier than what happened in reality
o This did disappoint some shareholders as you can see by some negative comments on Twitter/iHub
o This is understandable, but anyone trying to start a business in a brand-new industry knows how hard it can be and the loopholes you must jump through
o The partnership in April 2020 really kick-started TXTM’s campaign and since then everything has been flowing pretty smoothly with regular updates
o From my perspective, the company did not have much in the material/financial sense to report over the past 2 years as they were still in the R&D phase
o Financials and Current status should be coming soon in my opinion

Outlook:

I am not an expert, and this is all my opinion based on DD. I believe increased exposure and volume should get this stock moving quickly in the next few weeks. After that, we are waiting on news from the company regarding the details of the JV partnership and the revenue sharing model, in addition to the company filings and Pink Current Status. This should give it another push depending on how good the news is. If everything falls into place, TXTM could be one of the top stocks of 2021!

Good Luck To All!!