AAP Inc (AAPJ)

[SPM555]

The PR which came out on Jan 05 spelled out a lot of details about the Buddha Company acquisition. Just that business alone should warrant a higher market cap than what we have here at 300 million shares full diluted (currently barely above $1 million market cap at this pps). From the PR:

It is a store-in-store model whereby Buddha will rent floor space to several different cannabis brands to sell at one central location. Buddha will source products, provide the license, space and co-branding opportunities. This superior shopping experience with cannabis-branded boutiques will shift the risk to vendors and provide a continual annuity stream of predictable income to Buddha. Total first year annual projections in 2023 for Buddha for this one revenue vertical are $6.3M.

The company has the licenses available in Los Angeles referred to as a “Pre-ICO.” Pre-ICO refers to medical marijuana dispensaries that were open before Sept. 14, 2007, when the Medical Marijuana Interim Control Ordinance (ICO) went into effect. Under Proposition D and Pre-ICO status, the Company has full immunity and can freely sell the licenses and engage in commercial for-profit activity. There are only 160 pre-ico licenses that were granted in the city. All other licenses have stringent social equity requirements and require that at least 50% of the business be owned by social equity people (i.e., low income, cannabis criminal convictions, etc). The value of a pre-ICO with Buddha’s location and business is a minimum of $6,000,000. The value increases and has a premium based on the profit and top line revenue of the business.

The 300 million share o/s wouldn't be bad for a growing business (pun intended) like this, but now we get to see what these new shares are going to be able to add to the value of the company. I think these guys are in a very good place to raise capital responsibly and grow this business significantly, with the fore mentioned short position and FTDs being a big fat asset on their balance sheet to boost the share price immensely. IMO