Healthier Choices Mgmt Corp (HCMC)

[Capitalvaluetrade]

Breakdown of Valuation of IQOS

IQOS Market
- HCMC has made it clear via press release and patent lawsuit they right now are pursuing litigation only against PM due to the IQOS product infringement on HCMC patent. So what is the value here of IQOS from PM side?

https://dockets.justia.com/docket/georgia/gandce/1:2020cv04816/284090

Per the press release as well, HCMC states that PM is currently approaching 14 million users.

https://www.globenewswire.com/news-release/2020/11/30/2136949/0/en/Healthier-Choices-Management-Corp-Files-Patent-Infringement-Lawsuit-Against-Philip-Morris.html

HCMC’s lawsuit includes claims that Phillip Morris is infringing HCMC’s patent rights in connection with IQOS®, an alternative tobacco product marketed and sold by Phillip Morris. Philip Morris claims that it is currently approaching 14 million users of its IQOS® product and has reportedly invested over $3 billion in their smokeless tobacco products. Philip Morris has been very open about their ongoing transition from traditional fully combustible cigarettes to their modified risk tobacco products, including IQOS®.

*Keep in mind the average smoker spends $2,292 per year according to verywellmind (https://www.verywellmind.com/how-much-money-does-smoking-cost-you-4143324). That average can be lower or higher depending upon the customer, but we will use that for now.

-PM approaching 14 million users with an average spending of $2,292 per year on products is over $32 billion in IQOS value from PM for 14 million users. Now, if we're going off of the patent filed date of early 2018, then the number is much higher.

The Q-Cup patent
https://www.healthiercmc.com/patents

https://uspto.report/patent/grant/10,561,170

The value of the sales of IQOS from PM side could be higher than $50 billion. To even get $10 billion from the patent infringement it would be over 5 cents fully diluted. That is not taking into account previous sales from IQOS, and other Intellectual Property HCMC owns and revenue they currently produce. Remember, IQOS has a total of 5.5% of global market share of tobacco.

https://www.grandviewresearch.com/industry-analysis/tobacco-market


5.5% of 932 billion is 46 billion

https://www.fool.com/investing/2020/02/10/philip-morris-iqos-still-hot-despite-a-cigarette-s.aspx
IQOS now has a 5.5% share of the global tobacco market

The real growth opportunity continues to be the U.S., where Philip Morris is working through partner Altria to get IQOS available to customers. Right now, though, it's still only in just two cities -- Atlanta, and Richmond, Virginia -- as Altria slow-walks its debut. Philip Morris says it will also seek out another marketing order from the Food and Drug Administration for its upgraded IQOS 3 device.

That's massive. Truly massive. If you obtain even 10% of the 5.5% global market share, that's multi-billions. Know what you own.

Oh yeah, and let's not forget who's representing them...
https://www.cozen.com/about/awardshonors

- CVT