BAND Royalty

The QualityStocks Daily Newsletter would like to spotlight BAND Royalty.

• BAND Royalty (“BAND” or the “Company”), operated by Singapore-based LIBERTY IS PTE LTD, launches its first music art NFT collectibles, the BAND NFTs Series 1, on May 5, 2021, on OpenSea.io. A successful, short pre-sale that included the Company’s only three BAND Diamond Album NFTs, sold for a combined 60 ETH (currently valued at over $200k USD), and a combined private pre-sale approaching $1 million USD, led up to today’s public launch on OpenSea.io. To learn more, you are invited to the BAND community: https://t.me/bandroyalty  
• BAND Royalty, operated by Singapore-based LIBERTY IS PTE LTD, launches its first music art non-fungible token (“NFT”) collectibles, the BAND NFTs Series 1, on OpenSea.io, the largest NFT marketplace worldwide, on May 5, 2021. According to an update on the launch, a successful, short pre-sale that included the company’s only three BAND Diamond Album NFTs, sold for a combined 60 ETH (currently valued at over $200k USD), and a combined private pre-sale approaching $1 million USD, led up to today’s public launch on OpenSea.io. BAND Royalty is currently rolling out the first series of only 3,000 music art NFTs at 5 p.m. PST on Wednesday, May 5, on OpenSea.io. BAND Royalty is suddenly generating intense interest due to its unique NFT offering. BAND NFTs, one-of-a-kind digital collectibles in a growing NFT marketplace, stand out in their potential to generate music royalties from a growing list of top songs, including platinum and gold tracks, on the BAND Royalty music catalog. To view the full press release, visit https://ibn.fm/xhFHz

BAND Royalty (operated by Singapore-based LIBERTY IS PTE LTD) is the leading innovator of music-focused NFTs. BAND is an entertainment technology-driven firm focused on the distribution of non-fungible tokens (NFTs) that allow fans to earn royalties from top songs and artists worldwide.

BAND Royalty lets fans take their enjoyment of music to the next level by offering blockchain-secured BAND NFTs that enable holders to earn crypto from some of the world’s most popular songs. This unique opportunity allows individuals to share in income streams each time a song in the BAND Royalty music catalog is performed.

BAND’s royalty pools leverage a performance music catalog featuring tracks from some of the biggest names in music, including Beyonce, Jay-Z, Justin Timberlake, Cher, will.i.am, Timbaland, Missy Elliott and Rihanna.

BAND Royalty NFTs

BAND NFTs, hosted on the ethereum blockchain, are a special type of NFT that can be staked into any one of three BAND Royalty Music Pools to receive a portion of all royalty streaming income from each track, for each royalty pool category. The BAND ecosystem is supported by multiple types of transactions:

• Trading BAND Royalty NFTs – The first ever issuance of BAND NFTs is being offered to the public. Owners of the BAND NFTs will be able to trade them on the largest NFT marketplace, OpenSea, where the BAND NFTs are being launched on May 5, 2021.
• Music Royalty Pools – These blockchain BAND NFTs have a special DeFi (decentralized finance) utility. Holders of BAND NFTs have the option to stake their tokens for a period of 90 days to five years, with longer stakes receiving proportionally increased amounts of the royalties share. Holders have the option to trade their BAND NFTs or stake them in one of three special music catalog pools that provide access to BAND music royalties. The three types of music pools available for staking are print music, mechanical/public performance and synchronization.

Through staking BAND NFTs, the holder can earn crypto from both BAND NFT trades on the OpenSea NFT marketplace and from the BAND music catalog royalty revenue.

The company intends to sell three more series of BAND NFTs, with 3,000 NFTs in each series. This strategy would cap the supply of BAND NFTs at a maximum of 12,000 units. As these NFTs are staked to capitalize on royalty opportunities, the supply of BAND NFTs available for trade is expected to be reduced, which the company then expects would increase the value of the BAND NFTs moving forward.

Market Opportunity

The market for NFTs has exploded in 2021, driven by rising media coverage and mainstream awareness. A well-known example is the first tweet by Twitter CEO Jack Dorsey, which was sold as an NFT for the equivalent of $2.9 million in March. This growth has been particularly apparent for art-focused NFTs, spearheaded by digital artist Beeple, who sold an NFT series titled “Everyday: The First 5000 Days” for over $69 million at auction during that same month.

The performance of the NFT space hasn’t just been confined to those big-ticket items. OpenSea, the largest NFT marketplace, reported monthly sales of over $95 million in February 2021 alone, up from $8 million the previous month. In total, over $400 million in NFT trading had taken place on the ethereum blockchain as of early April, with nearly half taking place from February to March 2021.

As Reuters reports, enthusiasts view NFTs as the future of ownership, and they solve the problem of monetization for digital artwork. Importantly, the report notes that “NFTs could also transform music.” The industry seems to agree.

In March 2020, Kings of Leon released their latest album, When You See Yourself, in the form of an NFT – a milestone in the history of the entertainment industry.

BAND Royalty is uniquely positioned to capitalize on the shifting landscape surrounding digital ownership as it continues to roll out its series of BAND NFTs in the months to come.

BAND Royalty Founders

The name BAND is the combination of the founders’ initials, Barnaby Andersun and Noble Drakoln.

Barnaby Andersun (BA) has spent years developing blockchain and cryptocurrency solutions, acting as CEO of BlockAlchemy, a blockchain, ecommerce and digital design consulting firm. Being involved in all aspects of web technologies since their conception in the early nineties has made Mr. Andersun a true pioneer in web development, ecommerce, branding, online marketing and blockchain. A sought-after international speaker, Mr. Andersun has been invited to speak on cryptocurrencies at Harvard and World Economic Forum, Davos, where he coordinated a blockchain digital asset conference, as well as Stanford University.

Noble Drakoln (ND) has been an avid music royalty investor for decades. He is also CEO of WarePlay Games Inc., a mobile AR/XR game design and development studio. Having started out as a futures and commodities broker at the age of 19 trading the E-mini S&P, gold futures contracts and treasury bond strips, he went on to author the Wiley & Sons-published best-selling books ‘Winning the Trading Game’ and ‘Trade Like a Pro’. Along with being a tech investor, financial author and sought-after speaker, Mr. Drakoln has been a contributing writer to Forbes and Futures Magazine, and a radio and T.V. financial commentator on Bloomberg and Fox Business News.

BAND Royalty is operated by Singapore based LIBERTY IS PTE. LTD, located at 23 New Industrial Road #04-09 Solstice Business Center Singapore 536209.

Recent News

• New Music NFT Platform BAND Royalty Just Sold 3 NFTS for $200K
• InvestorNewsBreaks – BAND Royalty Snags $200K in Sale of Its Only 3 BAND Diamond Album NFTs
• BAND Royalty Revolutionizing the Way Fans Interact with Music Industry Via NFT Royalties

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR)

The QualityStocks Daily Newsletter would like to spotlight Energy Fuels Inc. (UUUU).

Energy Fuels Inc. (TSX: EFR) (NYSE American: UUUU) was highlighted today in a publication from Channelchek, examining how demand for nuclear energy has remained strong in recent years and is growing. The growth is projected to continue as a global shift to decarbonize aims to reduce industry dependence on fossil fuels. Meanwhile, the recent closure of 2 of the largest uranium mines in the world led to sharp price hikes for the metal. Even before the closure of these two mines in Niger and Australia, 2021 began with a record supply deficit.

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR),based in Lakewood, Colorado, is the country’s largest producer of uranium and the leading conventional producer of vanadium, both designated by the U.S. government as critical minerals.

As the leading U.S. diversified uranium miner, Energy Fuels’ uranium production portfolio stands apart in the world. Energy Fuels has more uranium production facilities, more production capacity, and more in-ground resources than any other company in the United States. In fact, the company’s assets have produced over one-third of all U.S. uranium over the past 15 years and is uniquely positioned to increase production to meet new demand.

Energy Fuels utilizes both conventional and in-situ recovery (“ISR”) technology to produce uranium from three strategic facilities:

• White Mesa Mill in Utah (conventional) has a licensed capacity of over 8 million pounds of U3O8 per year. The highly strategic White Mesa Mill is the only conventional uranium mill in the country and is proximate to some of the largest and highest-grade uranium mines and projects in the U.S., including the Company’s Canyon mine, La Sal Complex, Henry Mountains Complex and Roca Honda Project. White Mesa Mill provides Energy Fuels with significant production scalability as uranium demand increases. The White Mesa Mill also has other diverse businesses, including vanadium, rare earth elements (REE’s), alternate feed materials recycling and land cleanup, all described below.
• Nichols Ranch Plant (ISR) is located in the productive Powder River Basin district of Wyoming and has a total licensed capacity of 2 million pounds of U3O8 per year. Nichols Ranch has produced 1.2 million pounds of U3O8 since commissioning in 2014, and it has significant future expansion potential from 34 fully licensed wellfields containing significant in-ground uranium resources.
• Alta Mesa Plant (ISR) is located on over 200,000 acres of private land in Texas. The fully licensed and constructed ISR project has a total operating capacity of 1.5 million pounds of uranium per year and produced nearly 5 million pounds of U3O8 between 2005 and 2013. This low-cost production facility is currently on standby, maintained in a state of readiness to respond to expected increases in demand.

In addition to being the largest uranium miner in the U.S., Energy Fuels’ overall portfolio also includes a pipeline of high-quality, large-scale exploration and development projects that are permitted or are in advanced stages of permitting, as well as an industry-leading U.S. NI 43-101 Mineral Resource portfolio.

FACTOID: Energy Fuels has led industry efforts over the past two-plus years to get the U.S. government to recognize the importance of domestically produced uranium, including the 2018 – 2019 Uranium Section 232, the ongoing Nuclear Fuel Working Group and the recently announced creation of the U.S. strategic uranium reserve. The U.S. is by far the largest consumer of uranium in the world, yet we import almost all of our requirements; Energy Fuels aims to change that.

Nuclear Market Potential

Multiple studies in top scientific journals have shown that nuclear power is cleanest and most economical way to produce reliable electricity as worldwide demand continues to soar. Nuclear power is presently the only available and affordable low-carbon power source that can meet both current and future baseload electricity demands while simultaneously reducing air pollution and mitigating climate change. U.S. nuclear power plants currently generate nearly 20% of the nation’s electricity overall and 55% of its carbon‐free electricity and even a modest increase in electricity demand would require significant new nuclear capacity by 2025. According to the World Nuclear Association (WNA), there are currently 441 operable reactors, with another 54 units under construction and 439 in various stages of planning; in addition, the WNA has identified a potentially massive supply/demand gap through 2040 of 1 billion pounds. These factors among others are expected to significantly drive increased demand for uranium.

Reasons Nuclear is Gaining Traction

• Nuclear reactors emit no greenhouse gases during operation. Over their full lifetimes, they result in comparable emissions to renewable forms of energy such as wind and solar.
• Unlike any other form of energy, the waste from nuclear energy is contained and managed securely. Used fuel is currently being safely stored for ultimate disposal or future reprocessing, and 96% of this waste can potentially be recycled.
• Greater demand for clean electricity to power everything from homes to automobiles, reducing dependence on fossil fuels.

No. 1 U.S. Producer of Vanadium in 2019

Energy Fuels also produces vanadium as a byproduct of uranium production. Vanadium is designated a critical mineral, essential to the economic and national security of the United States. Energy Fuels was the largest producer of vanadium in the U.S. in 2019, and has significant high-grade, in-ground vanadium resources, as well as a separate high-purity vanadium production circuit at their White Mesa Mill, which is also the only conventional vanadium mill in the country. Crucial for use in the steel, aerospace, and chemical industries, vanadium plays a critical role in the production of high-strength and light-weight metallic alloys and demand is expected to increase across the globe.

Energy Fuels has several fully permitted and developed standby mines containing large quantities of high-grade vanadium, along with uranium, including:

• La Sal Complex (Utah)
• Whirlwind Mine (Colorado/Utah)
• Rim Mine (Colorado)

Vanadium has also gained increased attention as a catalyst in next-generation high-capacity, “community-scale” batteries used for energy storage generated from renewable sources. Demand is only expected to grow as this market expands. With recent upgrades in its vanadium production operations, in 2019 Energy Fuels produced commercial levels of the highest purity (99.7%) vanadium in the mill’s history and can rapidly adjust production to meet volatile market conditions. Energy Fuels is one of the very few known avenues that provides investors access the vanadium market.

Rare Earth Element (REE) Production, Alternate Feed Material Recycling, and Land Cleanup

The White Mesa Mill also provides the company with diverse cashflow generating opportunities. Security of supply for Rare Earth Elements (REEs) supporting U.S. military and defense requirements is a major issue today. Energy Fuels has been approached by a number of entities, including the U.S. government, inquiring about the potential to process certain REEs at the mill. The White Mesa Mill is currently licensed to process certain REEs, including tantalum and niobium. And, early indications are that the mill can be utilized to produce several other REEs. The White Mesa Mill is also the only facility in North America licensed and capable of recycling alternate feed materials (AFMs). AFMs are essentially low-level waste materials that contain recoverable quantities of natural (or unenriched) uranium. The Company typically generates between $5 and $15 million per year from AFM recycling. Finally, Energy Fuels is seeking to become involved in the cleanup of legacy Cold War era uranium mines in the Four Corners region of the U.S., including on the Navajo Nation. The U.S. Environmental Protection Agency (EPA) has access to over $1.5 billion for the cleanup of just a fraction of the sites on the Navajo Nation. The White Mesa Mill is fully licensed to receive much of this material, we are one of the government’s lowest cost options, and we have the ability to recycle the material and produce usable uranium from it.

Management Team

Mark S. Chalmers, President and CEO
Mark S. Chalmers is the president and chief executive officer of Energy Fuels, a position he has held since Feb. 1, 2018, following his role as chief operating officer of Energy Fuels from July 1, 2016 – Jan. 31, 2018. From 2011 to 2015, Chalmers served as executive general manager of Production for Paladin Energy Ltd., a uranium producer with assets in Australia and Africa, including the Langer Heinrich and Kayelekera mines where, as head of operations, he oversaw sustained, significant increases in production while reducing operating costs. He also possesses extensive experience in in situ recovery (“ISR”) uranium production, including management of the Beverley Uranium Mine owned by General Atomics (Australia), and the Highland mine owned by Cameco Corporation (USA). Chalmers has also consulted to several of the largest players in the uranium supply sector, including BHP Billiton, Rio Tinto, and Marubeni, and until recently served as the chair of the Australian Uranium Council, a position he held for 10 years. Chalmers is a registered professional engineer and holds a Bachelor of Science in Mining Engineering from the University of Arizona.

W. Paul Goranson, COO
W. Paul Goranson is the chief operating officer for Energy Fuels. Goranson has 30 years of mining, processing and regulatory experience in the uranium extraction industry that includes both conventional and in-situ recovery (“ISR”) mining, and he is a registered professional engineer. Prior to the acquisition by Energy Fuels of Uranerz Energy Corporation, Goranson served as president, chief operating officer and director for Uranerz, where he was responsible for operations of the Nichols Ranch ISR Uranium Project. In addition to those duties, he also managed uranium marketing, regulatory and government affairs, exploration and land. Prior to joining Uranerz, Goranson served as president of Cameco Resources, where he led the operations at the Smith Ranch-Highland, Crow Butte and North Butte ISR uranium recovery facilities. Goranson also served as vice president of Mesteña Uranium LLC, and he has served in senior positions with Rio Algom Mining, (a subsidiary of BHP Billiton), and Uranium Resource Inc. Goranson has a Bachelor of Science in Natural Gas Engineering from Texas A&I University, and a Master of Science in Environmental Engineering from Texas A&M University-Kingsville.

David C. Frydenlund, CFO, General Counsel, Corporate Secretary
David C. Frydenlund is chief financial officer, general counsel, and corporate secretary of Energy Fuels. His responsibilities include oversight of all legal matters relating to the company’s activities. His expertise extends to NRC, EPA, state and federal regulatory and environmental laws and regulations. From 1997 to 2012, Frydenlund was vice president of regulatory affairs, general counsel and corporate secretary of Denison Mines Corp., and its predecessor International Uranium Corporation (“IUC”). He also served as a director of IUC from 1997 to 2006 and CFO of IUC from 2000 to 2005. From 1996 to 1997, Frydenlund was vice president of the Lundin Group of international public mining and oil and gas companies, and prior thereto was a partner with the Vancouver law firm of Ladner Downs (now Borden Ladner Gervais) where his practice focused on corporate, securities and international mining transactions law. Frydenlund holds a bachelor’s degree in business and economics from Simon Fraser University, a master’s degree in economics and finance from the University of Chicago and a law degree from the University of Toronto.

Curtis H. Moore, Vice President of Marketing and Corporate Development
Curtis H. Moore is the vice president of Marketing and Corporate Development for Energy Fuels. He oversees product marketing for Energy Fuels, and is closely involved in mergers & acquisitions, investor relations, public relations, and corporate legal. He has been with Energy Fuels for over 12 years, holding various roles of increasing responsibility. Prior to joining Energy Fuels, Moore worked in multi-family real estate development, government relations and public affairs, production homebuilding, and private law practice. Moore is a licensed attorney in the State of Colorado. He holds Juris Doctor and MBA degrees from the University of Colorado at Boulder, and a Bachelor of Arts dual degree in Economics-Government from Claremont McKenna College in Claremont, California.

Energy Fuels Inc. (UUUU), closed Wednesday’s trading session at $6.17, up 4.932%, on 2,533,114 volume. The average volume for the last 3 months is 5,000,334 and the stock's 52-week low/high is $1.37999999/$7.82999992.

Recent News

• Slower Output and Increasing Demand Make Uranium Investments Hot
• MiningNewsBreaks - Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) On Pace to Outperform in Commercial REE Carbonate Production
• Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) Key to Domestic Rare Earth Production Amid Rapidly Expanding Market

Ideanomics Inc. (NASDAQ: IDEX)

The QualityStocks Daily Newsletter would like to spotlight Ideanomics Inc. (NASDAQ: IDEX).

A recent electric vehicle (“EV”) market publication by J.P. Morgan (NYSE: JPM) Global Research showed that EV penetration was gradually growing in North America, Europe, and China. The report projected that the penetration in the North American market would increase to 4% in 2020, up from 3% in 2019. In comparison, the European and Chinese markets were forecasted to witness a more rapid growth, fueled by an enabling regulatory environment, higher spending power and the prospects of a future that merges autonomous driving with green vehicles. For Ideanomics (NASDAQ: IDEX), a global company with a foothold in each of these three markets, these positive trends and statistics effectively mean that it is uniquely positioned to thrive well into the future. IDEX has been rapidly expanding its Mobility division through new acquisitions and investments. As a result, it has amassed a broad portfolio of EV products, including buses, EV tractors, trucks, two-wheelers and three-wheelers, on the vehicular end of the spectrum, as well as wireless charging solutions and battery and charging technology design and development, on the other. Currently, the Mobility unit consists of over five companies based in various jurisdictions.

Ideanomics Inc. (NASDAQ: IDEX) is a global company facilitating the adoption of commercial electric vehicles and supporting next-generation financial services and fintech products. Ideanomics is currently divided into two divisions – mobility and capital. These divisions provide shareholders with access to disruptive and high-growth opportunities.

The company expects 2021 to be another growth year after it raised approximately $400 million over the past six months. This funding has already been put to good use with acquisitions of Wireless Advanced Vehicle Electrification (WAVE) and Timios. With roughly $200 million still on the balance sheet, Ideanomics continues to look for new investments and acquisitions in revenue-based opportunities focused on EV and fintech businesses.

Founded in 2004, Ideanomics is headquartered in New York, New York, with additional offices in Hangzhou, Beijing and Qingdao, China. Its current operations span the United States, China, Ukraine and Malaysia.

Ideanomics Mobility

Ideanomics Mobility is focused on the EV market. The global commercial EV market was valued at $34.7 billion in 2018 and is expected to grow at a CAGR of 39.9% through 2022 to reach a total of $132.73 billion (https://ibn.fm/pPrf4). According to a survey by Grand View Research, the global EV charging infrastructure market is also expected to grow and reach $144.97 billion in 2028, expanding at a CAGR of 33.4% from 2021 to 2028.

This growth is expected to be driven by increased support of electric vehicles from the public, as well as the current U.S. administration, which has a goal of achieving a 100% clean-energy economy.

The Ideanomics Mobility unit consists of five companies:

• Mobile Energy Global (MEG) – Wholly owned China-based service provider of the Sales-to-Finance-to-Charging (S2F2C) business model to assist commercial fleet operators on EV enablement. Recent sales include 2,000 units of D1, BYD’s custom electric ride-hailing vehicle.
• Medici Motor Works – Wholly owned North America division. MMW will develop zero-emissions specialty vehicles, trucks, buses and vans for the North American market.
• Wireless Advanced Vehicle Electrification (WAVE) – Wholly owned Utah-based commercial EV charging technology company with a specialized offering of in-ground wireless charging for commercial vehicles. WAVE’s chargers power the Antelope Valley Transportation Authority, the largest municipal EV bus system in the country. Its revenue for 2020 exceeded $7 million, and it boasts a robust pipeline for 2021 and beyond.
• Treeletrik – Majority investment in Malaysian-based OEM will service a high-demand market – electric delivery mopeds. Treeletrik has obtained certifications in Thailand and Indonesia, with orders secured for 2021. Its North American marketing program is expected to commence in 2021. As a part of the ESG initiative, one tree will be planted for every unit sold.
• Solectrac – Minority investment in California-based electric tractor company. Solectrac manufactures 100% electric tractors to benefit farmers, crops and the planet at a time when the agriculture market remains virtually unaddressed by EV solutions.
• Silk EV – Minority investment in hyper car and performance car design company, which provides access to the high-end battery and charging technology development ecosystem.

Ideanomics is generating EV revenue from its Sales to Financing to Charging (S2F2C) business model, which features three operating areas:

1. Vehicle and Battery Sales: Medici, Treeletrik and Solectrac cover three key market segments
2. Financing, Leasing and Insurance: Offering financial services to fleet customers, commission delivery and origination fee-based revenue
3. Charging and Energy Services: Offering charging as a service, battery swap programs and WAVE wireless charging products

Ideanomics Capital

Ideanomics Capital is focused on providing disruptive fintech solutions across the entire board of financial services, ranging from financial markets to digital securities and assets to mortgages and more. More mainstream institutions and a growing number of companies have increased their digital securities services, along with institutional investments boosting bitcoin and the emergence of favorable regulatory developments, creating ample opportunities for widespread adoption of financial technologies.

Additionally, the U.S. real estate industry is ripe for technologization, as it currently is fragmented, antiquated, opaque and largely untouched by tech innovation. However, the expanding market, with U.S. home sales expected to grow 21.9% in 2021, and the increased digitization of all business spaces are expected to promote a digital-first experience as the new industry standard this year and beyond (https://ibn.fm/DwsUv).

The Ideanomics Capital unit consists of five companies:

• Timios – Wholly owned subsidiary bringing real estate into the 21st century by providing value-add, fee-based services addressing the title and closing process of home buying and mortgage transactions. Timios works to create transparency and efficiency within the market. Timios ended 2020 as a cash flow and EBITDA positive business.
• The Delaware Board of Trade (DBOT) – Wholly owned FINRA-regulated ATS and broker dealer based in Delaware.
• Liquefy – Minority investment bringing innovation to investment in real assets with blockchain technology by increasing efficiency in fractional ownership, lowering entry to investment barriers and unlocking liquidity in assets that were previously illiquid.
• Technology Metals Market (TM2) – Minority investment in UK company delivering a direct investment and trading market for technology metals with a newly accessible technology metals asset class for inventory diversification. The traded metals are 100% backed by physical metals.
• Intelligenta – Investment providing AI and machine learning solutions for financial institutions and regulators.

Management Team

Alf Poor is Ideanomics’ Chief Executive Officer. He is a client-focused and profit-driven executive who has a track record of success in rapidly growing technology companies and large, multi-national organizations. Mr. Poor’s expertise includes business planning, financing and creating and implementing corporate governance policies, as well as handling management across organizations. His specialization is working with cross-border and multi-national startups. Before taking the CEO role at Ideanomics, he was the CEO for Global Data Sentinel.

Conor McCarthy is the company’s Chief Financial Officer. He is a strategic and operationally oriented management-level professional. His extensive international experience is within the fintech, data science and advertising technology sectors. Mr. McCarthy has experience with public companies, PE, and VC-backed firms. His specializations are financial and management reporting, planning and analysis, financial modelling, performance metrics, KPIs, venture borrowing, Series A equity funding, ERP system implementation, international business operations, and acquisition due diligence and integration. Before joining Ideanomics, Mr. McCarthy most recently held a CFO position at OS33. Prior to that, he was CFO for Intent Media Inc.

Kate Lam is the company’s Managing Director of Financial Products. She is highly regarded for her fixed income capital marketing skills across Asia and the United States. Ms. Lam has over 25 years of experience in the financial markets industry, dealing with many asset classes and clients. Having spent a few years in the fintech startup industry, her skills bridge the gap between traditional financial assets and new technological innovations. She has held senior management positions at Bear Sterns, Deutsche Bank and Standard Chartered Bank.

Keith Byers is Ideanomics’ Senior Vice President of Operations. He has extensive experience managing strategic relationships with key clients and deepening the relationships through innovation and successful engagement strategies. Before Ideanomics, Mr. Byers was the Managing Partner and Head of Operations for Gain Theory. He has a Master of Arts – MA, Economics from Heriot-Watt University and a Master of Science – Economics from The University of Edinburgh.

Tony Sklar is the company’s Senior Vice President of Investor Relations. He is a communication strategist and has worked for multi-faceted companies with global operations. Mr. Sklar handles omni-channel distribution using intelligence platforms and data insights for strategic planning, international expansion and marketing channels. His specialties include project management with digital strategy and transformation, ICO, marketing, blockchain and strategic partnerships. In addition to his role with Ideanomics, he is also a board member for the Delaware Board of Trade and the host and senior technology reporter for Far From TV.

Ideanomics Inc. (IDEX), closed Wednesday’s trading session at $2.73, up 4.5977%, on 16,108,366 volume. The average volume for the last 3 months is 25,432,645 and the stock's 52-week low/high is $0.370000004/$5.5300002.

Recent News

• Ideanomics Inc. (NASDAQ: IDEX) Should Benefit from Positive Outlooks for Both the EV and Fintech Markets
• InvestorNewsBreaks – Ideanomics Inc. (NASDAQ: IDEX) Holds Unique View Across EV Value Chain
• Ideanomics' (NASDAQ: IDEX) Treeletrik Subsidiary to Supply 200,000 E-Motorcycles to Indonesia, Setting Stage for Significant Expansion

Gage Cannabis Co. (CSE: GAGE)

The QualityStocks Daily Newsletter would like to spotlight Gage Cannabis Co. (CSE: GAGE).

Gage Growth Corp. (CSE: GAGE) was featured today in the 420 with CNW by CannabisNewsWire. As more states legalize cannabis, the pioneers who launched the first state-legal cannabis sectors in the country may soon see their profits drop due to increasing competition. Colorado, for instance, has had a fantastic run so far. Its recreational cannabis industry has raked in nearly $10 billion dollars and filled the state’s coffers with billions of dollars in cannabis taxes. However, now that next door neighbor New Mexico has legalized recreational marijuana, some cannabis operators in Colorado fear their profit margins will start thinning once New Mexico launches its cannabis industry in 2022.

Gage Cannabis Co. (CSE: GAGE) is a leading vertically integrated operator in the cannabis industry led by the former CEO and Chairman of Canopy Growth Corp. (TSX: WEED) (NYSE: CGC), Bruce Linton. The company is currently focused exclusively on the Michigan market, working with the declared goal of building the fastest growing cannabis brand in the state.

One of the reasons Gage targeted Michigan as its location of choice is due to the state’s fast-growing legal cannabis market and consumption habits amongst consumers. In 2018, Michigan became the 10th state to legalize the recreational use of cannabis. In light of such favorable market dynamics, Gage opened its first medical provisioning center (dispensary) shortly after, in 2019. The company now has 13 medical or adult-use locations open or in the works, with an additional 10+ planned to open during 2021. Gage’s current portfolio features 19 Class C cultivation licenses across four cultivation assets and three processing licenses.

Current Asset and Brand Portfolio

Gage’s current brand portfolio consists of five unique product classes: flower products, edibles, hardware, concentrates and vape pens/disposables.

The company has already created relationships with a wealth of exclusive brand partners, including some of the most illustrious brands in the country. Notably, Gage’s exclusive partnership with Cookies, one of the most well-respected cannabis lifestyle brands in the United States, illustrates Gage’s operational prowess in cultivating quality flower and operating its branded retail stores. Today, Gage operates the 8 Mile Cookies location in Detroit, Michigan, which is one of the top performing dispensaries in the state despite being a medical-only dispensary.

Committed to providing only products of the highest quality, Gage uses small-batch, indoor-grown, high-quality cannabis that is hand-trimmed and hung to dry. Gage ensures that every gram of cannabis sold is consistently of the highest quality and offers a superb customer experience.

The company currently has four cultivation assets, located at Monitor Township (expansion planned), Harrison Township, Warren and Lenox Township, and it operates one processing facility located in Harrison Township, with plans to operate another two processing facilities in Monitor Township and Lenox.

Its operating dispensaries include Ferndale (adult-use), Adrian (adult-use), Lansing (adult-use), Traverse City (medical) and Detroit (Cookies establishment – medical). Additional dispensaries coming soon include Battle Creek (adult-use), Kalamazoo #1 (adult-use), Bay City (adult-use), Grand Rapids (medical), Buena Vista (medical), Center Line (medical), Kalamazoo #2 (Cookies establishment – adult-use) and Lenox Township.

The company offers delivery within a one-hour radius of its dispensaries – a footprint that encompasses an estimated 90% of Michigan’s population.

Financial Highlights

In Q1 2020, the company recorded sales of $5.8 million. This number grew substantially in Q2, reaching $11.9 million. Management estimates Q3 sales at roughly $13.1 million, marking a 157% growth in sales from January to September 2020, within a year of operations.

This increase reflects the company’s significant expansion efforts since the beginning of 2020. Starting with only 200 pounds per month, Gage now estimates its monthly cultivation capacity at more than 1,000 pounds of product.

This increase in cultivation capacity has helped Gage promote rapid growth through its retail locations. Average basket size, which refers to the retail value of each consumer transaction, is estimated at $85 for the Michigan cannabis industry. As of August 2020, Gage has an average basket size of $180 at its locations, more than double the state average.

Michigan Medical and Adult-Use Marijuana Market Size

The recreational marijuana market in Michigan is expected to rival the numbers currently seen in Nevada and Colorado by 2023. Approximately 3% of Michigan’s residents are medical marijuana cardholders – a much higher rate than many other medical markets – leading Brightfield to predict that the state’s recreational market could triple in size between 2020 and 2023 (https://ibn.fm/9cO0h).

Michigan saw a steady increase in sales for the first three quarters of 2020, with a recorded growth rate of 502% from January to August. In August alone, $109 million in cannabis sales occurred within the state. The Marijuana Regulatory Agency estimates that the potential market size for cannabis within the state is around $3 billion.

Neither Gage nor the state has seen any significant drop in sales in the wake of the COVID-19 pandemic. On the contrary, demand has continued to grow steadily, as dispensaries were among the few businesses deemed essential and permitted to operate throughout the shutdown. All Gage and Cookies locations have remained operational, offering curbside pickup.

Management Team

Bruce Linton is the Executive Chairman of Gage Cannabis. He joined the company in 2019 and is the founder and former CEO and Chairman of Canopy Growth Corp. (TSX: WEED) (NYSE: CGC). Mr. Linton has extensive executive and board experience in a variety of industries and is considered to be a pioneer in the global cannabis industry. He provides incomparable support to the company’s strategic and capital markets efforts.

Michael Hermiz is the Co-Founder and Director of Gage Cannabis, and he is also the founder of a federally licensed producer in Canada. Mr. Hermiz has had great success in various industries, including real estate, mortgage, telecommunications, import, export and many others.

Fabian Monaco is Gage’s President and Director. He previously worked at XIB Financial Inc., GMP Securities L.P. and Scotiabank. In addition to his vast investment banking and legal background, Mr. Monaco has 10+ years of capital markets experience. His advisory experience in the cannabis industry is also extensive.

Dr. Rana Harb is a Director of Gage Cannabis. She has 25+ years of experience handling research, compliance, quality assurance and regulatory affairs. A significant portion of her regulatory and compliance history is in the cannabis industry. Dr. Harb has worked for many pharmaceutical companies worldwide, dealing with regulatory agencies such as the FDA, the EMA and Health Canada.

Mike Finos is the President (USA) and a Director of Gage Cannabis. He is the former COO of Horizon Global, the world’s number one towing accessories company. He has experience with start-ups, M&A and business integration with both private and publicly traded companies. With 20+ years of operational leadership expertise, Mr. Finos has extensive knowledge relating to supply chain logistics, manufacturing and information technology.

David Watza is the Chief Financial Officer of Gage Cannabis. He is an experienced C-Suite executive and former CFO and board member of Perceptron Inc. (NASDAQ: PRCP). Mr. Watza has 30+ years of experience in finance, accounting, and operations, including time as a public company CFO.

Gage Cannabis Co. (CSE: GAGE), closed Wednesday’s trading session at $2.26, up 4.15%. The average volume for the last 3 months is 512,862.

Recent News

• 420 with CNW - Could Cannabis Legalization in New Mexico Hurt Nearby Colorado?
• InvestorNewsBreaks - Gage Cannabis Co. (CSE: GAGE) Plans Participation in Upcoming Conferences
• InvestorNewsBreaks - Gage Cannabis Co. (CSE: GAGE) Opens 13th Dispensary in Company's Retail Chain

Splash Beverage Group Inc. (OTCQB: SBEV)

The QualityStocks Daily Newsletter would like to spotlight Splash Beverage Group Inc. (OTCQB: SBEV).

Splash Beverage (OTCQB: SBEV), a holding company with a leading portfolio of beverage brands, has finalized an arrangement with Pepin Distributing for its SALT Naturally Flavored 100% Agave Tequila line. SALT Naturally Flavored Tequila will join the more than 168 premier brands distributed by Pepin Distributing, which is based in Tampa, Florida. Pepin already handles Splash Beverage’s Copa di Vino. SALT Naturally Flavored Tequila is 100% agave, 80 proof naturally flavored tequila that is grown, distilled and battled in Mexico. Every bottle of smooth SALT Tequila, which is available in a variety of natural flavors including Berry, Citrus and Salted Chocolate, is handcrafted. To view the full press release, visit http://ibn.fm/xm6eO

Splash Beverage Group Inc. (OTCQB: SBEV) is a portfolio company of successful beverage brands with the objective of driving value through superior production, supply chain efficiency and global distribution capabilities.

Specializing in manufacturing, distributing, sales & marketing of various beverages across multiple channels, the company operates in both the alcoholic and non-alcoholic beverage segments, allowing it to leverage efficiencies and dilute risk. The company’s business strategy is to quickly develop and/or accelerate pre-existing brands to exit for cash events. Led by a highly successful management team, the company only works with brands it perceives to have highly visible preexisting brand awareness or pure category innovation, thus breaking through the clutter. Splash seeks out brands offering products that:

• Deliver natural quality, health benefits, freshness and refreshment within their beverages;
• Are on trend with consumers;
• Have a high level of brand awareness;
• Maintain highest performance standards and focus on execution;
• Help distributors and retail partners achieve and exceed all goals; and
• Offer unapologetic support for members of the U.S. armed forces, first responders and health care professionals.

Splash was founded in 2013 and is located in Fort Lauderdale, Florida.

Splash Portfolio

The current Splash portfolio includes four unique beverage brands. Each of these brands offers one or more of the qualities that the company specifically seeks in an acquisition.

• TapouT Performance is a natural isotonic hydration & recovery sport drink featuring a 3-in-1 advanced formula. TapouT Performance restores what the body loses through physical exertion, delivering hydration and cellular recovery. Perfectly balanced with key vitamins & minerals and all five necessary electrolytes, TapouT increases nutrient absorption, allowing the body to recover quickly and more efficiently. TapouT is the official training partner of the WWE (NYSE: WWE).
• Salt Naturally Flavored Tequila is a 100% blanco agave 80 proof tequila that offers a clean and delicate taste. Salt is grown, distilled and bottled in the Jalisco region of Mexico. Every bottle of Salt Tequila is the result of hard work, determination and numerous blends. The brand offers a line of tequila flavors for enhanced refreshment, including berry, citrus and salted chocolate.
• Copa Di Vino is the leading producer of premium “wine by the glass” in the U.S. Produced in the Columbia Valley, Copa di Vino is readily available on the go without the requirement of a bottle, corkscrew or glass. Open, drink and enjoy.
• Pulpoloco Sangria is a premium crafted sangria imported from Spain. Its flavor is light-bodied, fruity and refreshing, offering the best blend of Spanish ingredients. The product is filled and packed in a unique eco-friendly biodegradable catocan, allowing Pulpoloco to extend the shelf life of the sangria without the use of preservatives.

Market Outlook

The global beverage industry was valued at $1.5 trillion in 2018 and is projected to grow at a CAGR of 3.1%, reaching a market size of $1.9 trillion by 2024 (https://nnw.fm/w1Cx9). The push for non-alcoholic beverages that are healthier and contain zero sugar is expected to be a driving force in the forecast period and beyond.

With a seasoned management team and sufficient capital to fuel sustained growth, Splash is uniquely positioned to capitalize on this market growth. The company is currently preparing a secondary offering and has engaged Kingswood Capital Markets as lead underwriter in order to uplist to the Nasdaq or NYSE in the near future.

Management Team

Robert Nistico is the Chairman and CEO of Splash Beverage Group. He has 28 years of experience in the beverage industry and was the fifth employee and SVP/General Manager of Red Bull North America. In this role, he led the start-up from zero sales to $1.65 billion in annual sales. Mr. Nistico was a founder and President of Marley Beverages and was responsible for framing the company’s long-term vision. Mr. Nistico held executive positions at DIAGEO, Republic National Distributing Company and the Gallo Wine Company resulting in decades of successful experience in the ‘Three Tier Beverage System’. In the spirit of his true entrepreneurial nature, he is a motivated, results-driven, creative and passionate leader.

William Meissner is the company’s President and CMO. He boasts over 20 years of success in growing consumer brand companies with large and medium-sized entrepreneurial organizations, both locally and internationally. His résumé includes multiple CEO roles, leading efforts to revamp both healthy and distressed companies. Before joining Splash, Mr. Meissner was the President and CEO of Sweet Leaf and Tradewinds Tea. He has held multiple positions with leading companies in the beverage sector, including Sparkling Ice, Jones Soda, SoBe Beverages, Fuze & NOS (Coca-Cola) and many others.

Sanjeev Javia is the Vice President of Product Development for Splash. He is the founder and President of Javia Wellness Group, a firm focusing on the innovation, research, formulation and design of healthy exercise and wellness initiatives. Mr. Javia is a sports nutrition expert, allowing him the advantage of developing innovative functional beverages that include health benefits for consumers. Since 2000, he has advised and written nutritional plans for hundreds of the world’s most famous athletes, including Tom Brady, Kurt Warner, Curt Schilling and more.

Dean Huge is the company’s Chief Financial Officer. He brings 35 years of public and private sector accounting and finance experience to the Splash Beverage team. Mr. Huge has led four public offerings as CFO and guided the growth efforts of numerous companies, including Catalyst Energy Corp., which was named Inc. Magazine’s ‘Fastest Growing Company’ within 36 months of his joining. His expertise spans financial services, manufacturing, distribution and SAAS-type programs.

Aida Aragon is the company’s Senior Vice President of National Accounts. She is a sales, marketing and brand management executive with years of experience working in the sports supplement and beverage industry. In her previous positions, Ms. Aragon was vital in leading successful store rollouts for brands including Muscle Milk. Her passion for brand development comes as second nature, but her true passion has always been focused on increasing sales for brands in the sports nutrition industry.

Splash Beverage Group Inc. (SBEV), closed Wednesday’s trading session at $1.69, up 10.4575%, on 66,038 volume. The average volume for the last 3 months is 51,672 and the stock's 52-week low/high is $0.210299998/$5.0999999.

Recent News

• InvestorNewsBreak - Splash Beverage Group Inc. (SBEV) Announces Distribution Agreement for SALT Naturally Flavored Tequila
• InvestorNewsBreaks – Splash Beverage Group Inc.’s (SBEV) Copa di Vino Featured in Yahoo! Life Article
• Splash Beverage Group Inc. (SBEV) Defines Craft with Unique SALT Tequila Offering

DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF)

The QualityStocks Daily Newsletter would like to spotlight DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF).

via InvestorWire — DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF) today announces its placement in an editorial published by NetworkNewsWire ("NNW"), one of 50+ trusted brands within the InvestorBrandNetwork (“IBN”), a multifaceted financial news and publishing company for private and public entities. To view the full publication, “COVID-19 and Martech’s Law: Companies Close Gap, Digital Advertisers Thrive,” please visit: https://nnw.fm/zeoI7

DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF) is a venture capital asset management company focused on acquiring and accelerating disruptive digital media, marketing technology (martech) and advertising technology (adtech) powered by artificial intelligence. DGTL (Digital Growth Technologies and Licensing) specializes in the acceleration of fully commercialized B2B enterprise-level software-as-a-service (SaaS) businesses through a blend of unique capitalization structures.

Founded in 2018 with operational offices in New York and corporate head offices in Toronto, Ontario, Canada, DGTL Holdings’ two-pronged mission includes:

1. Developing a diversified portfolio of high-margined, rapidly growing and fully commercialized B2B enterprise SaaS for institutional and retail investors, and
2. Building a “walled garden” tech platform featuring full-service digital media, martech and adtech offerings for Fortune 100 brands.

DGTL Accelerator Services

DGTL partners with growth-stage enterprise software companies, adding leadership, strategic planning and valuable resources. DGTL advances development while streamlining operations in scalable and sustainable ways, focusing primarily on:

• Capital Markets Financing (debt, equity and M&A)
• Investor Relations
• Organizational Development (recruitment/human resources, legal/regulation, forensic accounting, etc.)
• Software Engineering/UX Design
• Corporate Services
• Marketing
• Corporate Communications/Public Relations
• Business Development
• Client Services/Account Management

Through its acquisition and accelerator program, DGTL provides the tools, talent, technology, networks, capital and customer markets required to elevate and integrate digital media businesses – promoting a sustainable growth curve while supporting strategic business outcomes. In support of these objectives, the company offers four key services:

• Business Strategy: Leveraging expertise, industry networks and market relationships, DGTL companies have access to leadership in engineering, strategy, recruiting, marketing, business development, capital markets, operations, back-office services, etc.
• Capital Markets: DGTL’s accelerator program provides strategic access to value-added venture capital through strategically blended debt, equity and public offerings. This also includes financial modeling, due diligence prep, investor materials, capital roadshows, etc.
• Mergers and Acquisitions: DGTL identifies, evaluates and qualifies opportunities for M&A via its deal desk committee and custom proprietary system of bottom-up valuation.
• Growth Partnerships: The company seeks to collaborate on CMO-level buy-side relationships with Fortune 100 brands, building new channel partnerships, creating reseller opportunities with top advertising agencies and exploring cross-selling with the client’s base of subsidiaries.

DGTL is in a unique position to benefit from the growth of disruptive enterprise level social media content marketing and analytics-based software as brands continue to shift from traditional advertising to digital media advertising at an accelerated rate.

According to Statista, the average daily time spent (in minutes) with digital advertising in the United States was estimated at 470 in 2020, with time spend with traditional media coming in at just over 350 (https://nnw.fm/CmSIN). Additionally, more than half of the $572 billion global ad spend reported for 2020 was covered by digital ad spend, amounting to $291.7 billion. An increasing amount is allocated every year to social media and influencer/content marketing spend.

#HASHOFF Social Media CMS

#HASHOFF is a subsidiary of DGTL and an enterprise-level social media influencer CMS (content management software). #HASHOFF is a solution for global brands and leading advertising agencies that allows brand marketers to leverage the gig economy by identifying, scanning, optimizing, engaging and managing over 150 million freelance content creators for geo-targeted services.

Through the subsidiary, users can find the best content creators to represent their brands through #IAM Search(TM). The platform uses an approach that eliminates subjectivity to find the right content creator, no matter the scale, scope, geography or language of the campaign. The tool eliminates the need to sift through unnecessary hashtags and generic criteria to find the right fit. With #IAM Search(TM), brands can rank, optimize, scan for brand fit and shortlist the best ambassadors.

#CreateMarketplace(TM) is a complete workflow solution and e-commerce marketplace allowing for the development of long-lasting partnerships between global brands and local content creators. The marketplace is where brands come to build and curate their tribes of brand evangelists on a 100% transparent SaaS platform.

Financial Results

In February 2021, DGTL announced its financial results for the three-month period ended November 30, 2020, its second quarter of fiscal 2021 (https://ibn.fm/C34wM). Among the highlights, DGTL reported:

• Overall revenue of $1.253 million for the quarter;
• Overall revenue of $2.416 million for the six-month period, representing a year-over-year increase of 79%; and
• Revenue from its Hashoff LLC subsidiary totaling $738,000 for the three-month period, marking a 70% year-over-year increase.

“We are pleased with the continued revenue growth of our first SaaS acquisition. We anticipate continued momentum from Hashoff LLC via new business development and customer acquisition,” John Belfontaine, Founder of DGTL, stated in the news release.

These results continued to build on the momentum from DGTL’s Q1 results (https://ibn.fm/JpO69). For the three months ended August 31, 2020, the company reported $1.162 million in overall revenue. Through its Hashoff subsidiary, the company reported $634,593 in revenue, marking an 83% increase for the first quarter post-acquisition.

Management Team

Michael Racic is the President and Chief Executive Officer of DGTL. He has over 20 years of experience and background as a media executive and communications planner. Mr. Racic’s programmatic tech expertise provides the right mix required to value the impact of AI solutions within the competitive digital media/adtech culture. He is a keynote speaker and is published across the globe for advertising tech and the digital media sector. Mr. Racic is SVP Director of Agency Partnerships and Category Strategy at RocketFuel and EVP of Head Global Planning with UM and J3.

John David A. Belfontaine is the company’s founder and Executive Vice President of Corporate Development. He has over 15 years of experience as a serial entrepreneur and a corporate development executive for private and publicly traded companies. In prior roles, he worked as a Retail Wealth Product Manager for Empire Life Financial and as an executive for national and regional CPG brand program management with many Fortune 100 companies. Mr. Belfontaine is the former director for Phivida Holdings Inc. (CSE: VIDA) and Co-Founder of CoachellaGro, which was sold to Mohave Jane (CSE: Jane).

Scott Davis, CPA, CGA, is the Chief Financial Officer of DGTL. He is a partner with Cross, Davis and Company LLP Chartered Professional Accountants, a firm focused on providing accounting and management services for publicly listed companies. Mr. Davis has held CFO and senior management positions for several TSX Venture Exchange-listed companies. He currently serves on several public company management teams. He brings vast public company and capital market experience to DGTL.

Steve Goldberg, MBA, is the company’s Chief Operations Officer. He has over 25 years of executive search and recruiting experience in digital media and adtech. He has worked as an executive with firms in telecom, education/training and “Big-4” public accounting fields. Mr. Goldberg has an MBA in Finance from New York University and earned his CPA while at KPMG. He is currently acting as the co-owner and managing partner of Media Recruiting Group.

Charles Thomas is the Chief Strategy Officer of DGTL and its #Hashoff LLC subsidiary. He has over 35 years of experience in digital media and advertising focused on senior executive development strategy and the management of national sales teams. Mr. Thomas is a pioneer in adtech, working with Time Inc. in 1995 (later Time-Warner AOL). He is a former VP of Ad Sales at Broadcast.com, working for Mark Cuban and launching one of the most successful IPOs in history during that time. He has also worked as Regional Sales VP for Yahoo, Sales Strategy contractor for Facebook, and SVP of Sales for Centro.

Dave Beck is an independent director and strategic advisor. Mr. Beck has over 20 years of experience in the public capital markets, leading TMT investment banking at three boutique investment dealers, and a renowned technology financial analyst in both New York and Toronto. With an MBA from Ivey Business School (UWO), he has been led and invested in many private technology companies over the last 25 years. He has also served as a director for several public companies, including Quadron Cannatech Corporation (CSE: QCC) Pivot Technology Solutions Inc. (TSX: PTG), Basis100 Inc. and CRS Robotics Corporation.

DGTL Holdings Inc. (DGTHF) , closed Wednesday’s trading session at $0.4591, up 0.371666%, on 28,937 volume. The average volume for the last 3 months is 22,295 and the stock's 52-week low/high is $0.27000001/$0.799300014.

Recent News

• DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF) Sees Explosive Growth in Adtech, Martech
• COVID-19 and Martech's Law: Companies Close Gap, Digital Advertisers Thrive, DGTL Holdings Inc. (TSX.V: DGTL) (OTCQB: DGTHF)
• InvestorNewsBreaks - DGTL Holdings Inc. (TSXV: DGTL) (OTCQB: DGTHF) (FSE: A2QB0L) Announces Q3 and YTD Financial Results

Aterian, Inc. (NASDAQ: ATER)

The QualityStocks Daily Newsletter would like to spotlight Aterian, Inc. (ATER).

Aterian (NASDAQ: ATER) has released a statement regarding the May 4, 2021, short seller Culper Research issued. Aterian noted that the report contained numerous false and misleading statements about the company and appeared to be an attempt to negatively impact and manipulate Aterian’s share price. Specifically the statement noted issues with information regarding revenue from its Healing Solutions revenue, which excluded revenue from hand sanitizer products; technology and AIMEE(TM) (“AIMEE”), Aterian’s leading technology-enabled software platform; and the company’s business performance, which the statement noted included a CAGR of 79% since 2016 and more than $150 million in revenue since the third quarter of 2020. To view the full press release, visit https://ibn.fm/kTGCw

Aterian, Inc. (ATER) is a leading tech-enabled consumer products platform that uses machine learning, natural language processing and data analytics to design, develop, market, and sell products. The company’s proprietary AIMEE(R) platform leverages data and AI to automate the design, development and launch of best-selling consumer products.

Aterian owns and operates 12 brands and sells consumer products in multiple categories ranging from kitchenware and home appliances to environmental appliances, beauty products and even consumer electronics.

Founded in 2014, Aterian has offices in the United States, Canada, China and the Philippines. The company is always working to capitalize on the strength of the different cities and time zones in which it operates to ensure continued excellence around the world and achieve its goal of becoming the most consumer-centric product company.

AIMEE(R) Platform

AIMEE(R) (AI Aterian E-commerce Engine) is Aterian’s proprietary platform that leverages data and AI to:

• Identify new market opportunities;
• Launch new products;
• Automate marketing variables; and
• Analyze and optimize company-owned and operated consumer product brands.

The platform’s core functionalities include:

• Research: Automated research using live market data that tracks exposure and product trends, allowing for the swift discovery of new market and product opportunities;
• Financials: Places data insights in one place, enabling execution across multiple channels to track new product planning, financial projections, inventory levels, media buying and more;
• Trading: The result of an algorithmic solution that has been optimized for live decisions to scale sales and built to implement automated marketing strategies with learning through experimentation; and
• Logistics: Manages logistics to enable faster delivery of products to consumers.

Aterian’s Business Model

Aterian’s unique business model is designed to drastically shorten go-to-market time, decreasing the typical 18- to 24-month process to just 6- to 8-months. Using AIMEE(R), Aterian leverages real-time data-driven opportunities and trend tracking to replace the idea focus group research and development of the standard model.

Marketing time is also reduced between the two models using the AIMEE(R) Trading Engine for data-driven automated marketing and product lifetime management. Through the AIMEE(R) trading engine, the traditional 3-month marketing for a standard go-to-market model is cut to a fraction of the time.

The AIMEE(R) Fulfillment Engine allows for dynamic inventory allocation, fulfillment selection, cost optimization, a third-party logistics network and a 2-day shipping period across almost all of the United States. The standard business model doesn’t support direct distribution or an FBA (fulfilled by Amazon) structure.

Opportunities for Growth and Profitability

Aterian’s plan to drive growth and profitability in the market includes:

1. The continued optimization of product economics by lowering manufacturing and logistical costs through an increase in purchasing power
2. The pursuit of higher-value products with larger target markets
3. Opportunistically adding new products and categories through acquisitions
4. Expansion into the international and new domestic e-commerce marketplaces
5. Monetization of its proprietary AIMEE(R) platform by providing access to third-party brands

Aterian’s long-term goal is to increase its profit margin from 14% in 2020 to 18-20%, using higher average selling prices and lower fulfillment costs as primary drivers. Due to its technology and platform effect, Aterian’s corporate overhead is expected to increase at a slower pace than sales. Its fixed operating costs long-term target goal is 5%, which follows the current trend (2019 – 19%, 2020 – 13%). It aims for an adjusted EBITDA of 13-15%.

Management Team

Yaniv Sarig has been Aterian’s President and Chief Executive Officer since September 2018. He is also a co-founder of Aterian Group Inc. Mr. Sarig has served as the President and Chief Executive Officer of Aterian Group Inc. since June 2014. Before his role at Aterian, he led the Financial Services Engineering department at Coverity, a software startup providing code and security solutions to top financial institutions and hedge funds in New York to include the New York Stock Exchange, Nasdaq, JPMorgan Chase and Barclays. Before his Coverity role, Mr. Sarig held lead technical roles at Bloomberg and EPIQ Systems Inc. (NASDAQ: EPIQ). He holds a Bachelor of Science from Touro College. He is fluent in English, French, Hebrew and C++.

Fabrice Hamaide has been the Chief Financial Officer of Aterian since September 2018. He has also retained the position of Chief Financial Officer for Aterian Group Inc. since July 2017. Before Aterian, Mr. Hamaide held numerous financial, CFO and presidential roles in various technological and consumer product companies across Europe and the United States, including Piksel Inc., Atari, Parrot and Logitech. Mr. Hamaide holds an impressive set of credentials, including an MBA from Columbia Business School, an MS in Information Systems Design from Sorbonne University, and a BS in Applied Mathematics from Jussieu University.

Mihal Chaouat-Fix has been the Chief Product Officer for Aterian since September 2018. Prior to taking this role within the company, she was the Chief Operating Officer, handling the day-to-day leadership and operational management of Aterian. Before joining Aterian, Ms. Chaouat-Fix worked in various roles at Gottex Models Ltd. At this international fashion swimwear firm, her focus on marketing, operations and manufacturing saw supply chain and distribution of 12 million units per year to over 40 countries worldwide.

Tomer Pascal has been the Chief Revenue Officer for Aterian since 2018. He has also served as the Chief Revenue Officer for Aterian Group Inc. since 2017. Before he joined the Aterian team, he was the Chief Executive Officer and co-founder of OMG Studios. Throughout his career, Mr. Pascal has held many different co-founder and general management roles, focusing on companies’ marketing and revenue growth in the media and technology industries.

Roi Zahut has held the role of Chief Technology Officer for Aterian since 2019. Before Aterian, he served in numerous roles, including CTO of the Advanced Analytics global consulting team at IBM and architect of IBM Metropulse. While in Israel, Mr. Zahut held several senior technical, business and data science roles in startups and consulting to include IBM Israel, Brainbow Ltd. and Matrix IT Ltd. He holds an MSc in Neuroscience with distinction from Bar Ilan University.

Aterian, Inc. (ATER), closed Wednesday’s trading session at $15.72, off by 10.7832%, on 2,123,449 volume. The average volume for the last 3 months is 1,098,577 and the stock's 52-week low/high is $3.56229996/$48.9900016.

Recent News

• InvestorNewsBreaks - Aterian Inc. (NASDAQ: ATER) Releases Statement Regarding Inaccurate, Misleading Culper Research Report
• Mohawk Group Announces Rebrand as Aterian
• InvestorNewsBreaks - Mohawk Group Holdings Inc. (NASDAQ: MWK) Forecasts 88% to 105% Revenue Growth in 2021