Re-listened to the investor presentation from earlier this month and did a few "back of the napkin" calculations.
XXII has roughly 56M shares going forward (and doesnt plan on further dilution from what it sounds like)
So at a share price of @ $1.80, XXII has a market cap of @ $100M. At the current share price of $2.13, XXII has @ a $119M market cap.
Henry says X-22 is a $1B market cap opportunity. This alone would be worth @ $18/share to XXII stock price, if successful. Identifying a phase 3 JV partner is their focus at this point.
Henry thinks XXII can replicate American Spirits' success with their self-manufactured Red Sun brand. American Spirits as a stand-alone company is worth @ $3.8B. The equivalent valuation is roughly equal to $68/share to XXII.
So these two ventures alone have a potential (or expectation?) of $4.8B in market cap for XXII, which is equal to over $85 in share price with the current 56M shares outstanding. Wow. And we are excited about $2?
Then comes the big money. Brand A and Brand B self-manufactured cigarettes, the licensing of XXII's patented technology to big tobacco (royalties straight to the bottom line), and the possible FDA mandate which would essentially create a monopoly for XXII and its tech on the entire market. Who wouldn't want to smoke a less harmful or a less addictive cigarette?? Anyone? If the industry has to go through XXII in order to produce less harmful or less addictive tobacco (which both consumers and govt. regulators want), XXII could be worth well, well over $100/share. An added benefit would be improved health for millions of people.
Not trying to hype, but I just get excited when I think of the possibilities here. Of course, XXII has to deliver in order for our dreams of share price appreciation become a reality, but I'm certainly not selling any shares at this stage and valuation. We are excited about surpassing $100M in market cap; imagine if and when we surpass $1B, $2B, ....
I have patience, which I'm sure will be required.
Quotes from Henry:
"Our goal is to build a multi-billion dollar market cap company"
"I believe the shares will be worth substantially more in the future than they are now"
