A Response from TGODS's Investor Relations....
QUESTION
Good Morning,
how much focus does TGOD's Executives and Board give to the share price? TGOD is currently trading at all-time share price lows and has gone from a Market Cap of over $2 Billion to $68 Million. Personally, my return on my TGOD stock is -82% since I've owned for a few years. What is TGOD doing to make the long-term shareholders continue to hold because pretty much all other shareholders I know have lost faith and sold at a huge loss.
Thank you,
Long-Term Shareholder
ANSWER
Shane Dungey (sdungey@tgod.ca)
To:you Details
Good morning,
We spend 100% of our time on creating fundamental value, driving to a sustainably profitable company. This will be reflected in our share price but as the age-old adage goes ‘the market can remain irrational longer than you can remain solvent’.
The disconnect in valuation versus value, especially when considering the growth opportunities, is well documented in the sector as well as with respect to TGOD. If you look at Analyst estimates we have targets that are well above 2-3x + times our current price. This illustrates how undervalued we as a company and a sector we are. As I mentioned this will change but it will require several things, least of which is a new investor base with capital to deploy.
A recent research piece from Cantor Fitzgerald highlighted the plight. Pablo had cited that up to 90% of the investor base in cannabis is retail, with ~70% having been in early and lost a similar percentage to what you have cited. Despite that the market has never looked cheaper and we continue to inch closer to a change in the US banking. When (not if) that happens the flood of capital with be quite large and you can also expect to see big global CPG brands step back in. Our job is to build a company that can stand alone on its fundamentals regardless of the upcoming changes, which is what we are focusing on.
In short, we feel we have a fantastic opportunity in the market with great and now diverse product line that resonates with consumers, we are growing distribution penetration in key markets such as ON, AB and BC while remaining a top seller in QC. At this point in time, trading at ~1.5-17x EV/Sales we see potential has never been better and we feel that shareholders will be rewarded. Our management team that has joined from the Galaxie side are seasoned veterans of the industry who have seen the opportunity and rejoined the industry and chosen TGOD, and specifically TGOD stock as the partner to take advantage of the current market malaise. On a pro forma basis we will be sitting at ~20% insider ownership which I believe should resonate with investors.
Regards,
Shane
AI
