Bahamas Development Corporation Approaching 52-Week High, Transforming into Cannabis Consortium
- Consistently releasing news, building a cannabis consortium
- Shares up 300%+ since April 4, 2018
- Plans to plant 15 acres of hemp to validate crop yields; show revenues
Bahamas Development Corporation (BDCI) is proving out it incubator type model in the marijuana sector and creating real shareholder value in Cannabis Consortium. Investors are taking notice because on, April 4, 2018, BDCI closed at $0.034 per share and has since gained over 300% the last 5 weeks, while closing yesterday, May 8, 2018, at $0.1041 per share nearing their 52-week high of $0.1199. Volume has also swelled this year from an average of 78K shares per day to a record 2.76 million shares per day. In early April the company tipped their shareholders to expect an additional deal or two in the coming weeks and the volume really started to ramp up.
Prior to the “more deals are coming” press release, Bahamas Development shares had hit over .10 on a massive volume day, quickly fell back to the .034 range (a justifiable 67% correction) and was ripe for hungry investors to not only play BDCI for a bounce but also ride the anticipation of 2 more upcoming press releases. Without fail, by mid-April BDCI over delivered, with news of an extraction machine purchase, the entering in the distillate market, the plans to acquire an edible candy company and the finding of a building to lease.
Bahamas Development Corp. didn’t stop there, on top of the forecasted news, they ended the month of April with additional private placement/financing news.
On April 23, 2018, Cannabis Consortium secured a $1,000,000 Private Placement to purchase building and lab assets. The $1.M private placement, of which $800k was in fact completed and announced on May 1st, 2018. The building deal is set to close by May 15, 2018, less than 2 weeks away, and the lab assets will be used in oil production.
Non-Dilutive Above Market Offerings
With financing in place, the company is now well positioned to be a player in the hot Cali Cannabis market that will allow them to generate revenue, scale the business, and ultimately deliver value to current and future shareholders. The most recent acquisition was done at $1.00 /share of Cannabis Consortium, but the real story is how they have been able to walk the price of the stock up from $.50 on their first deal to buy the building and then $.75 for a follow on investment. This well above market financing should paint a picture that smart money is flowing into this sector and cannot get enough. Investors are realizing this is a land grab type situation and that the first in the market to produce revenues is going to have a sustained competitive advantage. The rate that BDCI is acquiring properties appears to bode well for sustained capital infusions in a non-dilutive fashion.
Transformation of a Cannabis Consortium
The company recently announced their plans of farming the hemp fields, which will now allow BDCI to grow future product. The 15-acre hemp test plot is being prepared now, and planting is scheduled for later this month. The farmer estimates two crop grows can be done annually. If the initial test is proven, the next layer of the plan is to plant up to 800 acres of hemp. The estimated gross revenue expected to accrue annually from 800 acres is $160,000,000 minus $20,000,000 in operating expenses, resulting in a net of $140,000,000. After the first year of operation the farm may expand to 1,400 acres.
BDCI in just a short time, is painting a detailed picture for the future of this green friendly company. Yesterday’s news of the cannabis distillate, states the acquisition has been servicing the cannabis market for the past 2 years and has quickly become a household name. Their premium oil is in such high demand in the cannabis oil market it has been sought out by some of the largest names in the cannabis industry for private labeling. The acquisition will also allow Cannabis’s Partners to begin servicing the cannabis distillate market immediately and manufacture a steady supply of premium oil to infuse its’ edibles with.
Cannabis Consortium can now grow, extract, distill, infuse and sell to consumers, bringing the business full circle from planting seeds to edibles on store shelves.
High Gross Margins
According to the deal deck the combined proforma’s from just the Oil deal, the Edibles deal, and the Retail shop will bring in $786,878 in NET REVENUE this year. Next year that number balloons to $2,667,797 in NET REVENUE. Assuming modest growth in the share count to 200 million the EPS will grow to $.0135. The gross margins on both the oil business and retail shop are approximately 85% while the edibles business tops out at 92%.
Background On BDCI/CC/TGGI
Bahamas Development Corp. (BDCI) merged with Cannabis Consortium earlier this year. The idea of the reverse merger was announced late last year, where 100 million restricted common shares of BDCI were issued to Trans Global Group, Inc. (TGGI) for the rights to Cannabis Consortium. This concluded transaction now makes TGGI BDCI’s largest shareholder. The significance is that this is an affiliate control position subject to stringent Rule 144 leak out provisions. This means there is little if any overhanging stock being shed by BDCI. The company has been relatively quiet since its announcement last year, but recent news seems to indicate its coming into a super news cycle. There are 250 million authorized shares with 182,687,610 outstanding and only 29,021,900 in the float. When investors see the float in comparison to the recent trading volume it’s pretty obvious that the forces trying to hold the stock down will crack from the underlying buying pressure. The company has been working strategically to capture a piece of the pie within the hot Cali Cannabis space via partnerships and deals.
About Cannabis Consortium
Cannabis Consortium does not own or operate any licensed cannabis operation. Cannabis Consortium is entitled to receive 15% of the annual net revenue collected by its partners from every project it is involved with. The Company is also entitled to receive 15% of the proceeds its partners receive should any company be sold. Cannabis acts as a consultant in these transactions and is not involved in any day-to-day operations or decision making for any of the licensed cannabis operations. Cannabis may own assets in the future that are leased to various licensed entities operating in the cannabis sector. Cannabis will receive rent from any asset it leases to the cannabis sector.
The company is really starting to morph into a formidable player in the hot Californian Cannabis market. The company can support a much higher valuation because it resembles a Cannabis Incubator that doesn’t have plans of selling their business. If investors dive deep into these acquisitions they will see the company has a focus on existing businesses that are CASH FLOWING! In exchange for financing the company is getting slivers of cash flow in the hot Cali Market. A public incubators works if the price is pushed higher and they continue to raise funds. It’s a land grab and the first to market is the one that is going to win. Shares of BDCI are trading currently just above $0.10 and are quickly approaching its 52-week high of $0.1199. With a CEO that seems to use a sledgehammer to forecast future acquisitions investors might do well to heed his warning. Bigger and better things are coming and it doesn’t take a savvy investor to connect the dots.