Altitude International Inc (ALTD)

[rubicon_jones]

It's a great question but if you do the DD on the company you will see that not only have they established some of the best professional athletes in the world over the past 45 years but they also have great business associates around them.

I was chatting with someone a couple of months ago (maybe sooner) and he asked me what I thought was the most significant occurrence for Altitude over the past 5 months. I responded-"most significant or most interesting". He responded "ok both".

I said the most significant was the Rush deal hands down. This is the model that Greg B talked about as expanding the soccer academy. Through months of significant DD I think it is a gamechanger and a revenue growth monster on so many levels.

He said ok then what about the most interesting and you have something in mind or else you wouldn't bring it up.

I said it was a transaction on 32 of the 10K. -"On February 28, 2022, the Company issued 1,000,000 shares of common stock to Hospitality Funding, Inc. for consulting services rendered to the Company"

I looked up the company to see who was receiving 1 million shares for consulting (again in these growing companies consulting shares must be looked at extensively). Here is a link to the website- https://www.hospitalityfunding.com/

Pretty impressive stuff and based in Florida. these aren't the types of people you bring in for a soccer field or something small. If they are involved it must be for a significant property.

Looking at their financial statements, ALTD pays between 35-45% of revenue to their lease expense of the cost of revenues which is payments to Club Med for rent, boarding, food for students, or services at the facility. That's a huge chunk of change. Now if they owned the property it's like owning a house versus renting think what the balance sheet looks like.

Also if they are running the property they would be able to have rooms for soccer clubs to train there (they lost significant revenues over the years from not being able to get the rooms from Club Med) and expand their operations.

Plus if you ever went to the property there is a huge opportunity to build houses for families there (right now there are over 25 families that either buy or rent outside Club Med gates so their kids can go to school and train there). Now instead of sending that business to a local real estate person all of that income goes on your financials.

This is the only piece missing from what they built at IMG.

Plus think about the DD that goes into these loans by these types of institutions. Extensive. More than we can get our hands on. Look at the deals they have done on their website-

1) $60 million Construction loan for hotel in Austin Tx.
2) Loan for a purchase of 214 room hotel in Orlando across the Street
from the new Universal Park Epic Universe scheduled to open in 2023.
3) $145 million loan for 45 hotels

I think they are capable of raising $50 million to purchase a Club Med location of 218 acres. How about you?

Here is the Founder's information on the web site- https://www.hospitalityfunding.com/key-people

"Mr. Silver, the founder and Chairman of Hospitality Funding Inc. has 30 years of experience on Wall Street with particular expertise as an advisor in raising joint venture equity, debt, mezzanine financing, REITs, and M&A. He has been an advisor on over $2 billion of transactions. Mr. Silver is skilled at sourcing capital and identifying opportunities to match companies with the optimum capital partners. Prior to founding Hospitality Funding Inc., Mr. Silver was General Partner at The Sapphire Group, a boutique merchant bank, where he launched the group’s specialty finance/REIT practice. Prior to joining the Sapphire Group, Mr. Silver spent 20 years at large Wall Street investment banks, including UBS, Warburg Dillon Read, Paine Webber, and Lehman Brothers."

Do you think this person is an asset to Altitude and could help them get to where they want to be?

The asset is there....it's tangible, it's been operating for 30 years. It's beautiful and enables ALTD to grow. It also shows that the revenues ALTD generates are scalable or else these real estate people would not be involved. It's a numbers game people and obviously, the numbers work if they have put $500,000 down and planning on closing at the end of August. There has to have been tons of DD done on this deal already.

That to me is exciting.

There was a lot in the 10K and looking forward to the Q. I have some other interesting tidbits I am researching so stay tuned.