International Cannabis Company Kaya Holdings Receives Buy Rating, Fair Value Estimate of $0.89 in Fundamental Research Corp Profile
(OTCQB:KAYS) U.S. Cannabis Company to Leverage First-Mover Advantage in Greece and Israel- Initiating Coverage
Ft. Lauderdale, Fl., March 22, 2021 - Kaya Holdings, Inc., (“KAYS” or the “Company”) (OTCQB.KAYS), confirmed today that Fundamental Research Corp (“FRC”) has initiated coverage of KAYS with a Buy Rating and Fair Value Estimate of $0.89.
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According to FRC’s website, FRC is one of the largest independent research houses in the world, with a 17-year track record of covering 550+ companies,
and as of March 12, 2021
FRC’s top picks were up 76.4% on average since initiation of coverage.
The report was filed under cover of 8-K Friday, March 19 after market closes and is in process of being released to
their subscribers and others over the next few weeks
and contains the following highlights:
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KAYS is a U.S. based vertically integrated cannabis company with operations inOregon, currently in the process of expanding operations in Israel and Greece. We expect near-term growth to come from its U.S. operations, with the European operationsexpected to be the primary long-term driver.
In 2020 (9M), the company reported $774K in revenue, up 7% YoY.
KAYS has two production facilities and two retail outlets in Oregon. The retail storessell own company and third-party brands. KAYS has four active brands, with 14 inpipeline to be launched this year, per management.
The company will operate in Greece through a Joint Venture with a local Greekcannabis company, and in Israel, through its majority owned subsidiary. The Greekproject received its Development License, and the Israeli project is expected to receive itslicense this month. Both countries’ operations require fundraising for buildout of facilities.Management also mentioned plans to expand its retail store chain into Israel, uponlegalization of recreational cannabis.
With the U.S. political shift creating federal U.S. legalization optimism, the U.S.marijuana market is projected to grow to $30-$37B by 2024 (from 17.5B in 2020).With over twice the population of the U.S. and Canada combined, Europe’s cannabismarket is projected to reach $146.37B by 2028 (from $3.5B+ in 2020). (various sources).
Both Israel and Greece have recently opened up their medical cannabis industries. Israel isthe largest importer of cannabis in the world, and is expected to legalize recreationalcannabis in 2022.
In February 2021, the company announced plans to raise $45M for its Greek project.
We believe that favorable market conditions in Oregon, and expanded operations ofKaya, should allow it to ramp up revenue growth. Kaya’s European expansion plans are invery early stages.
