Zenabis Buy Rating GMP Securities $3.25🚀 скачать в хорошем качестве

Zenabis Buy Rating GMP Securities $3.25🚀

Zenabis Buy Rating GMP Securities $3.25🚀- RICH TV LIVE - JUNE 28, 2019 - We spoke to several of ZENA’s partners, including government contacts who all had exceptional regard for the company and its products. ZENA’s quality of facilities, receptiveness of management and ethical practices were all mentioned as key criteria in a stringent partner evaluation process. Although, a financing overhang has persisted for ZENA, in part from an open convertible debenture, we believe the stock is well oversold with several positive catalysts ahead. ZENA’s team is also well aligned at ~53% insider ownership, along with the CEO’s compensation tied to EBITDA/share, EPS and share price. As ZENA continues to execute on its growth plan, the financing overhang dissipates and a solid partner ecosystem expands, we expect valuation to re-rate higher. We initiate with a BUY rating and $3.25 target. Opportunity to become a top five LP: ZENA currently has licensed production capacity of 23,100 kg but with submitted amendments to increase its run-rate to 32,900 kg in Q3/2019. Further, construction at ZENA’s Langley facility is expected to be completed in the summer with incremental capacity of 96,100 kg, which would bring the total run-rate to 131,200 kg going into 2020. This could position ZENA as a top five Canadian LP supplier with an option to still expand capacity further to 478,800 kg. Although, most LPs have aggressive expansion plans, our ZENA forecasts reflect conservatism to what it is capable of achieving with Dutch horticultural expertise. We are also comforted with the fact that ZENA’s partner ecosystem is highly supportive and a strong entrepreneurial team will be flexible in pricing to move high quality product. Propagation business supports value creation with added stability: As part of the creation of ZENA, Bevo Agro and SunPharm merged through an RTO deal in Jan. 2019. Bevo is a plant propagation business (seed to seedling) that has monopolistic characteristics, good growth and a history of value creation. Bevo will contribute ~$35m in sales and ~$8m in EBITDA with what we estimate to be ~$100m in EV to ZENA. This also highlights a low EV of ~$275m attributed to cannabis or 7x multiple vs. peers at ~20x, in part from a complicated capital structure. However, most dilutive ZENA securities have much higher strike prices and we expect a near-term refinancing to clear up investor uncertainty. Rating: Our $3.25 target is based on a 12x EBITDA multiple for propagation and 15x for cannabis. We see ZENA as becoming a top five Canadian LP supplier. BUY. Subscribe -    / richtvlive   Visit - http://www.richtvlive.com/ a FREE community for stocks, sports, travel, and trending topics. #richtvlive #zenabis #stockmarket RICH TV LIVE Clothing - https://teespring.com/stores/rich-tv-... list=PLiBGEhbXkQPCHTZsUlx-GxSGgsCLUSKJO Popular Uploads - https://goo.gl/tbvXGg Most Recent Upload - https://goo.gl/unKXBy YouTube Channel Page - https://goo.gl/yUdG7w Subscribe - https://goo.gl/q2tLnn Rich TV Live Playlist - https://goo.gl/e116JF RICH TV LIVE TOP 10 STOCKS Playlist -    • TOP 10 STOCKS MONTHLY   Disclaimer RICH TV LIVE company profiles and other investor relations materials, publications or presentations, including web content, are based on data obtained from sources we believe to be reliable but are not guaranteed as to accuracy and are not purported to be complete. As such, the information should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed in RICH TV LIVE reports company profiles or other investor relations materials and presentations are subject to change. RICH TV LIVE and its affiliates may buy and sell shares of securities or options of the issuers mentioned on this website at any time. Investing is inherently risky. RICH TV LIVE is not responsible for any gains or losses that result from the opinions expressed on this website, in its research reports, company profiles or in other investor relations materials or presentations that it publishes electronically or in print. Disclosure - https://www.richtvlive.com/feature-.html We strongly encourage all investors to conduct their own research before making any investment decision. For more information on stock market investing, visit the Securities and Exchange Commission ("SEC") at www.sec.gov/Canadian CSA https://www.securities-administrators....