StockFam™ Spotlight Newsletter

StockFam™  Investor Education Series
StockFam™ Spotlight Newsletter
By StockFam™  • Issue #18 • View online

Peak Fintech Group’s Business Execution Marches On: Penetrates Insurance and Oil & Gas Industries. Upward Revised Guidance Mere Days Away
With a pair of releases this week, Peak Fintech Group unveiled two more major, scalable verticals for The Business Hub.  Earlier in the week, the company began to demonstrate the power of their recently acquired Heartbeat Insurance Platform, as Peak entered an exclusive agreement with pre-owned vehicle trading platform YouCKU, which currently has over 42,000 affiliated dealers in 24 cities in China.  YouCKU is differentiated from other platforms through its artificial intelligence and big data systems.  For those looking for further validation of the platform, global investment firm Cathay Capital stepped in as a major investor in YouCKU last November.  Cathay manages roughly $3 billion USD in their various funds over four continents.  Through Heartbeat, Peak will provide YouCKU with “after sale used car warranty policies, extended warranty policies and on-site vehicle repair and replacement policies”.
This first foray into the insurance space via Heartbeat should demonstrate to investors the potential of the platform.  Most clients of the Business Hub are buying, distributing, and financing specific physical products, but insurance policies can cross into virtually any industry.   All goods and materials in business need to be insured, and the vast potential of the insurance vertical across all industries further illuminates Peak’s business plan.  As with many news releases in the past twelve months, investors need a little time to process the magnitude of this agreement, but as financials are released in the coming quarters, this penetration into the insurance sector will be impossible to overestimate.
Peak announced the early results of pilot projects in the Oil & Gas Industry in China.  Now, when investors hear of a pilot project, some think of a long and tedious process that hopefully bears fruit (revenues) over a couple quarters.  Peak, however, is not your average company, and as such, their pilot projects were undertaken with major distributors of PetroChina, Sinopec, and British Petroleum (BP), all global giants.  The pilots were focused in the port megacity of Guangzhou, which many refer to as the industrial hub of China.  This small pilot program resulted in 11 transactions totalling roughly $200M CAD and generating over $6M CAD in revenue for Peak.  This bears repeating: A small trial to get Peak’s foot in the door of the industry generated more than six million dollars.
Unlike the Heartbeat Platform, the oil & gas platform did not need to be purchased by the company, as they were able to simply insert it as a module within the existing Gold River Platform. According to the September Monthly Progress Report(Form 7), the company expects to update investors on further developments shortly. For those who follow the Peak story closely, breadcrumbs dropped in the monthly updates virtually always lead to major company developments.  
Other highlights from the Monthly Progress Report
which is published separately from the other news releases, included references to a new vertical for the company: The Clean-Tech Sector. An announcement is expected in Q4 regarding a major development in this sector, which appears so significant as to push back the scheduled release of guidance to the week of October 18th. For those who have forgotten, Peak’s original guidance forecast $104M CAD in revenues for 2021, with $305M in 2022 and $624M in 2023. The company is expected to release increased guidance numbers which include deals concluded in Q3, including the vital acquisition of Cubeler Inc, ensuring a smooth transition for Peak into North America, beginning this quarter in Canada.
In two other business operations updates, Peak highlighted Xiamen Guangzhui Ltd. which has now gained exclusive distribution rights to Red Bull energy drinks in 8 Chinese provinces. The company also stated that The Link-Steel Platform has been in full swing since August.
Finally, there was optimism from the company as it worked closely with the SEC to amend the Form 40F and bring about a resumption of its shares trading on the NASDAQ, with an update expected imminently.
FOBI Acquires PassWallet and Enters Fintech Space: Gains Access to 6 Million+ Current Users and 150 Countries That Google Pay Doesn’t Serve
FOBI AI continued its impressive run of agreements with one of the most transformative yet: the acquisition of PassWallet, a leading wallet pass issuer for Android devices.  PassWallet has been downloaded more than 6 million times, providing a ready-made and growing client base for FOBI.  Passwallet is the largest wallet pass app outside of Google Pay itself, but a key difference is in the geographic scope of the two services.  While Google Pay is restricted to 40 countries worldwide, PassWallet serves an additional 150 countries, including nations with massive populations of mobile users such as Mexico, Israel, The Philippines and Indonesia.  With a growing base of users already in the millions, and average revenue per user (ARPU) falling somewhere between $10-$25 (depending on the estimation model used), it is not difficult to see the immediate potential of the acquisition.  However, the transactional revenue is expected to pale in comparison to the data which can be monetized via third party ad-tech firms.  Most analysts agree that data has replaced oil as the world’s most valuable commodity, and as PassWallet expands through 2021 and into 2022, the opportunity for both transactional and data monetization revenue is difficult to put a limit on.  The acquisition of PassWallet came in at €888,000 ($1.28M CAD), with the majority paid in shares, as the PassWallet team demonstrated its belief in the future performance of FOBI.
In the current pandemic-focused climate, we are all witnessing the future of wallet pass utility with our mobile-based proof of vaccination passes.  Wallet passes will become the default medium for boarding passes, transport cards, movie and theatre tickets, concerts, museums, festivals, theme parks or stadiums, loyalty cards, vouchers and discount coupons, and many more.  It is already a way of life in many Asian and European countries, and North America is on the cusp of following their lead, with the pandemic only accelerating the trend.
Fobi AI Inc. $FOBI $FOBIF @fobi_inc
Announces Acquisition of PassWallet, A Leading Android Wallet Pass Issuer With 6,000,000+ Downloads. Deal To Provide Near-Term and Long-Term Revenue Growth
#Realtime #BigData #AI #Analytics #fobi50 #stockfam
FOBI CEO, Rob Anson, also directed investors’ attention to the opportunities in the red hot and expanding fintech sector, as a large percentage of people outside of Google Pay’s 40 country reach are unbanked, meaning that they are not served by a regular bank or other financial institution.  In FOBI’s news release, the company stated that major banks acquire new customers at an average cost of $925 per customer, while fintech giant Square onboards new customers at an average of only $20 (according to an Ark-invest report), most successfully in areas with higher percentages of unbanked people.  
Although it maintains its identity as a real-time data intelligence company, FOBI is now well-positioned for rapid growth in the global fintech space.
A Deeper Dive into Digital Wallets.
DD Corner with Mike Hardy
DD Corner with Mike Hardy
With Fobi’s acquisition of Passwallet this week, we take a look at the enormous marketing opportunities that this deal brings to Fobi’s ecosystem.
We hear about payment wallets like Google Pay and Apple Pay, where you can set up your credit or debit cards on your mobile phone to pay for purchases directly with just a tap of your phone. But there’s another big aspect to digital wallets that are starting to gain traction in the business community: Mobile Wallet Marketing.
Here’s a great article that gives an introduction to the world of digital wallets.
What Is Mobile Wallet Marketing? More Than Just a Digital Payment Approach | CleverTap
“Mobile wallet marketing refers to the marketing efforts that include tools such as personalized loyalty cards, passes, and tickets to engage customers on mobile. No app is required and customers don’t have to opt-in as a result. 
Here are some important elements that will help companies target and support that user experience:”
Icanic Brands Continues Transformative Period of Growth: Stock Rises 35%
Icanic Brands wrapped up an eventful Q3 by signing a letter of intent (LOI) to acquire  Substance LLC, a premium California cannabis brand.  This most recent acquisition comes closely on the heels of potentially the largest acquisition in the company’s history: the LOI with Leef Holdings, the largest extraction company in California.  As mentioned in a previous StockFam™ Spotlight issue, Leef Holdings supplies distillate and concentrate to six of the top ten brands in California, easily the largest cannabis market in the US. The top ten brands in California are synonymous with the top cannabis brands in the world, among them are: Cookies, Mary’s Medicinals, Bloom, Kiva and Lowell Herb Co, amongst others.
Icanic Brands Transformational Update w/ CEO Brandon Kou | $ICAN $ICNAF
Icanic Brands Transformational Update w/ CEO Brandon Kou | $ICAN $ICNAF
As a combined entity, Icanic and Leef would project $80M USD in 2021 total revenue, transforming Icanic into a major player in the California cannabis landscape.  Leef alone projected revenues for 2022 at 60M, without even mentioning its expansion plans, including a full-owned 196-acre parcel for cultivation, which will become the largest cannabis farm in California, producing 220lbs in 2022 and nearly doubling that amount in 2024.  A further processing facility is planned in central California.
Substance LLC premium products are sold in most major cannabis retailers already, including Flower Co, Green Wolf LA, and Catalyst, but Icanic would focus on expanding the brand further by using its existing supply chain, manufacturing center and unified sales team and distribution process.  Substance LLC is recognized in the industry for its stance on racial equality and social justice, donating $8.46 of every unit sold to help fight the issue of mass incarceration.  The specific price represents the final 8 minutes and 46 seconds of George Floyd’s life.  Details of the potential deal included a purchase price of 1.3x 12 month trailing revenues from the completion of a formalized deal, payable in shares of Icanic.
Finally, Icanic unlocked value for shareholders by selling its management and purchase rights of a cultivation facility in Sacramento, California.  The $2M USD sale frees up non-dilutive capital as the company continues its aggressive scaling strategy, yet Icanic was able to secure a below-market off-take deal with the facility operators for that ensures their high gross margins into the future.  
Icanic Brands Announces USD $2 Million Sale of Sacramento, CA Cultivation Interest and Enters into Below Market Off-Take Agreement @GANJA_GOLD

#grower #cannabis #cannabisnews #marijuanastocks #marijuana #marijuanagrowers #Stockfam
The timing of Icanic’s rise couldn’t be better, as The House Judiciary Committee approved a bill to federally legalize marijuana, paving the way for the bill to hit the floor of the senate sooner rather than later.  Investors have taken notice, as Icanic shares are up 34% since mid-September, reaching their highest level since the spring.
From The Architects
@MakingMoneyNow: Aduro Clean Technologies Milestone Update
@MakingMoneyNow: Aduro Clean Technologies Milestone Update
Aduro Clean Technologies is positioning itself as a long-term ESG (Environment, Social, and Governance) investment with a commitment to the shareholders and to not overpromising. Over the last few weeks, they have provided some key insights into their technology. I would expect the results from their demo unit to be released over the next few weeks.  What investors will be waiting for is the level of success in their
Milestone A: 2 litres of continuous flow of heavy oil being converted to lighter oil.
A successful demonstration of this technology has the potential to eventually disrupt the entire industry.
Aduro | A Vision for Ocean Plastic Clean Up
Aduro | A Vision for Ocean Plastic Clean Up
After the demo results are out, third-party verification can commence. This should be a significant catalyst for the company. For those who are not aware, their hydrochemolytic process is unique and utilizes the properties of water and chemistry to efficiently upgrade bitumen, renewable oils, and plastics. Based on the webinar, we now know that their CAPEX (capital expenses) on bitumen upgrading is expected to be only 15-20% of the traditional process. Management outlined in their recent presentation that they have contracted with Exergy Solutions for the engineering and design of their 5-10 barrel per day pre-pilot reactor (R3B) which is expected to be completed in 2022. Fully diluted, Aduro has only 48 million shares. Giving its attractive share structure, keep an eye as more catalysts propel the company through each milestone.
Negative is Good
So this Friday we had a baffling job report. Analysts & economists alike have really been struggling to come up with any sort of realistic estimate for the past two months. Why? Well, as unemployment benefits came to an end and back-to-school season took hold, analysts were expecting a strong job report, particularly in the education sector. Lo and behold, the US economy only added 194K jobs vs ~ 500K expected. Now why do I even bother writing about the jobs report ? Well it’s simple, Fed Chair Powell said earlier last week that even a decent job report would all but confirm tapering in November. However, given the weak job report, should we expect tapering to commence in November? I’d argue yes, and I believe the bond market is also signaling that. The 10-year bond yield has risen to 1.6% from below 1.3% just three weeks ago. This is not due to lift off but a possible fuel-driven inflation, forcing the Fed to taper. And I don’t think that’s bad for the markets. It is crucial to note that $120B monthly purchases of treasuries and MBS will not have an impact on employment. I think the markets have been digesting a potential tapering in November and that rates should settle between 1.7-1.8% by year end. 
Now I’m not all negative. I think many layers of uncertainty are falling apart, slowly but surely. The number of ships waiting in line outside of Los Angeles has fallen to around 55 from 80 just a week ago. Furthermore, the price of a 40 ft container on Shanghai-LA route has fallen to below $10K from $18K just this past week. Why? Well, many of the larger corporations ordered higher quantities well in advance to prepare for the holiday season- a very similar scenario to when everyone rushed to Costco to buy toilet paper!  We had enough for everyone but people were hoarding, hence leading to a shortage. Supply chains should fairly normalize by Q2 2022. 
Anyways, I won’t keep this going for too long; earnings season starts next week and investors are a bit nervous. However, for the past couple of months the negative sentiment regarding lower sales/margins due to supply chain issues & inflation has been baking into the market. Typically, entering earnings season with such pessimism can lead to a surprise to the upside. I think that could very well be the case. 
Happy Thanksgiving my fellow Canadians! 
Sean K
Did you enjoy this issue?

StockFam, the free platform that aims to bridge the gap between retail investors and quality microcap companies through DD and education. Not Advice!

In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue