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Item 9 Labs Corp. (INLB)

Other OTC - Other OTC Delayed Price. Currency in USD
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1.0600+0.0100 (+0.95%)
At close: 03:47PM EST
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  • G
    George
    Accumulation and keep the share price down, brilliant , let the buying begin
  • T
    TheBlindHog
    Due Diligence 2/10/2021:

    I like this management team. There has been a lot of discussion and speculation about what happens to the marijuana industry if/when Congress follows through on legislation that reclassifies marijuana from being a Schedule 1 drug. The Marijuana Opportunity Reinvestment and Expungement Act would remove cannabis from the Controlled Substances Act, eliminating conflict between state and federal law and allowing states to set their own cannabis policies. In practical terms, that should enable interstate commerce and enable loosening or elimination of banking restrictions and other regulatory barriers restrictions that have severely hampered the industry. There are a lot of players in the market, but I think Item 9 Labs is uniquely positioned and staffed to capitalize on the new paradigm.

    - The planned merger with One Cannabis Group and its Unity Road franchise system makes Item 9 Labs the parent company with access to licensing candidates across multiple states, representing a many-fold expansion of product placement and sales. Unity Road's franchise guru, Mike Weinberger, will be joining the board at Item 9 Labs to provide continuing oversight of franchise recruitment and development. His encyclopedic knowledge of the many different state licensing requirements gives Item 9 Labs an edge when it comes to ramping up operations in multiple jurisdictions.

    - In anticipation of the expansion, plans have been made, permissions and licenses have been procured, and some of the work has already commenced and/or been completed to expand production capacity sufficient to meet rising demand.

    -Michael (Mic) Keskey joining the board is a huge bonus. He is a true innovator and was personally responsible for innovations at Best Buy that transformed that company into the industry leader back in the brick and mortar days of the tech revolution. He was later promoted to President of Best Buy. His association with Item 9 Labs can't be overstated for the credibility he extends to their management team and the direction the company is headed.

    -Management has been working hard to bring the company into compliance with SEC reporting requirements. The company has moved up the pink sheets ladder from the OTCQB to the OTCQX market. I have not seen it explicitly stated, but if their goal is to attract institutional investors, they need to be on one of the major exchanges and they are taking the appropriate steps to get there.

    -Jeffrey Rassas, Chief Strategy Officer, is well placed to lead the effort to a Nasdaq listing. He is a co- founder of Red Cat Holdings, which has just announced it has applied for listing on Nasdaq. He also co-founded Quest Resource Holding Corp, which trades on the NasdaqCM.

    -The company does fund some operations through the sale of stock, but they are very judicious in doing so and are attentive to the rights of common shareholders in that regard. There are 63 million shares outstanding, of which 100 percent are common. There are no preferred series of shares as is so prevalent with start-ups and poorly managed companies. The expansion projects have been funded by sell of stock and the merger with One Cannabis Group is also being funded with stock, to the tune of 19 million shares. What I find very encouraging in that transaction is that fully one third of those shares are being held in reserve with release dates timed at six, twelve, and eighteen month intervals. What that tells me is that the One cannabis Group fully expect to see a significant appreciation in the share price over that time period and are willing to delay their compensation to achieve a fully actualized valuation of their company. I think that is not only brilliant, but also a sign of good stewardship on the part of Item 9 Labs management team. Yes, the merger will result in share dilution, but the full impact won't be felt immediately and should be easily absorbed as the company footprint expands.

    -Of the 63 million shares currently outstanding, 12.5 million are held by officers of the company and an additional 30 million are held by beneficial shareholders. The 19 million being issued to fund the merger will also be held by insiders, with 12 million immediately available and 7 million held in trust to be realesed at intervals, as described previously.

    -Officers hold warrants to purchase an additional 294,000 shares at varying strike points. All in all, the insiders hold a large position in the allotment of shares and that is always an encouraging sign for potential investors.

    You should do your own research. What I see is an extremely well-managed company that is well-positioned to fully exploit the opportunities presented by the MORE ACT. With a Nasdaq listing and institutional investment, they could easily become an industry leader in what is one of the most lucrative emerging markets. I am long on INLB!
  • T
    TheBlindHog
    I am sure these have been in the works for a while, but what a nice surprise to see this very exciting news so soon after the merger closed. No doubt, many more are in the pipeline. These announcements in combination with the expected continued revenue growth from all the new markets being created are going to be huge catalysts for SP appreciation. A year from now, this company will be on all the watch lists - so nice to be early to the party.
  • N
    Night Trader
    $SNDL conversation
    For anyone who like low volatility, low volume, but 3x your money in the last 6 months check out Cannabis stock $INLB, under the radar and still affordable, with the market cap that $SNDL could gobble up in a second, and become real profitable real fast. I truly hope the management team reads this board, lots of good ideas for M&A here, take that 712 million in cash and buy 3-5 companies that give them a foothold in the U.S., sit back spark up a doobie, and just watch themselves become a multinational powerhouse! GO GREEN NYC!!!
  • J
    JOSEPH
    It seems that 2020 will be a stellar year for us as Arizona will be legalizing for recreational use.
    Also, we should see revenue from the Strive Life platform.
    Took a hard hit in 2019,.... really looking forward to 2020.
    GLTA....
  • G
    George
    Why is this selling? bad news? i hope not
  • T
    TheBlindHog
    The 10Q is out. Revenue increased substantially and margins are improving. Sales are limited only by production - they are selling it as fast as they can grow it. The expansion of the grow facility in Arizona will certainly lead to increased production and sales. Likewise the Nevada grow facility, when it comes on line. Meanwhile, the integration of Unity Road in the reverse trangular merger brought with it 30+ franchise candidates. Any of those that come to fruition will also usher in new sources of revenue - not only from the franchise fees but also from the sale of branded products. Their cash position is better than it has ever been and they did deliver a tiny profit for the quarter, albeit still in the negative for the six months. That said, most of their cash came from financing activity via private placements and warrants. That is not unexpected with a growth company, but what worries me is they are selling the company at a major discount to the current price. In the worst example, that was done to satisfy a loan with a note that was coming due and were therefore highly leveraged. Other deals are harder to swallow. I acknowledge the company is still finding its way in a relatively small market and has historically been upside down as far as debt to equity, so I understand it may be hard to find investors willing to pay at the market, particularly given that the stock is so thinly traded, but the amount of the discount still seems steep from the perspective of a retail investor. Still, I do think the potential provided by the Unit Road merger and the continuing triple digit increases in sales revenue combined with the expansion of facilities bodes well for the future. They claim their cash position is sufficient for the next 12 months and that should be time enough to prove the worth of their franchise model and continue to grow revenues from the expanded operations. Hopefully the company begins to attract attention from more retail investors so that the share price can find its level under true market conditions.
  • T
    TheBlindHog
    Three more franchises announced today, including one each in Michigan and Ohio. Every new franchise increases the retail space for INLB products and Michigan and Ohio are significant markets. Near term margins will undoubtedly take a hit in the next few quarters as every new state requires investment to establish an in-state grow operation. Nevertheless - great news and confirmation that the Unity Road merger was a wise decision.
  • T
    TheBlindHog
    We're about three weeks away from earnings and the Unity Rd franchise segment is heating up sufficiently to require a couple of new executive positions to handle the work load. Hopefully that means will soon have a series of PR drops heralding new deals, new acquisitions, and new grow facilities to meet demand for INLB product as more and more states are added to the INLB franchise map. Meantime, I suppose this slight pullback can be considered a "dip" and an opportunity to add to my position. GLTA!
  • S
    Savannah
    Item 9 Labs Corp. (INLB)
    Annual Report Available on 10-K
    https://sec.report/Document/0001554795-20-000013/
    Security and Exchange Commission SEC Item 9 Labs Corp. Form 10-K
    Security and Exchange Commission SEC Item 9 Labs Corp. Form 10-K
    sec.report
  • T
    Three blind mice
    $CRLBF conversation
    Dispensary licensing is a state by state issue like liquor stores right? Once the state has awarded the approved number of licenses, canna-co.'s have to lobby or wait to compete for the new ones that become available. The Verdant acquisition gets Cresco 4 dispensaries out of the 52 statewide, the current maximum number of retail locations allowed by Ohio.

    Ohio is the seventh most populated state in the U.S. Has breakneck growing medicinal use licenses of over 160,000. 2020 annual cannabis sales of nearly $220 million. Cresco also has the largest type of cultivation license allowing 25,000 sq. ft. facility currently under expansion.

    As long as they keep in good graces with the state in seems they've got Ohio on the balance sheet from years to come.

    $INLB is a small-cap canna-operator soon offering franchising to independent dispensary license holders. Will be interesting to see if growth by acquisition or growth by franchising proves more fruitful...
  • T
    TheBlindHog
    Yes! Great news today. This merger puts INLB in a whole new space. Revenues should be sharply higher, quarter after quarter, for the foreseeable future, particularly if each new franchise also becomes a buyer of INLB products.
  • P
    PTM
    The additional shares granted to the OCG investors (I am one of them), after that acquisition this past winter are now coming off of regulatory freeze and will be available for trading in the next few weeks. Is it possible that that share dilution is also contributing to the selloff?
  • T
    TheBlindHog
    We are less than 2 weeks away from the first post-merger earnings release. I am not expecting to see profitability at this early stage but I will be shocked if there isn't a triple digit increase in yoy earnings and a double digit bump from the previous, record-setting quarter.
  • T
    TheBlindHog
    It won't be long now before this company gets "discovered" by the investing community. When it does, the rise is going to be dramatic. As for today's news, the opening of this franchise could not be more consequential. This is what sets the company apart and this store in Boulder is proof of concept. I also really appreciate that they are looking for more dispensaries to acquire, grow internally, and sell off to new franchisees. What a great management team.
  • T
    TheBlindHog
    Updated DD:

    $INLB I like this management team. There has been a lot of discussion and speculation about what happens to the marijuana industry if/when Congress follows through on legislation that reclassifies marijuana from being a Schedule 1 drug. The Marijuana Opportunity Reinvestment and Expungement Act would remove cannabis from the Controlled Substances Act, eliminating conflict between state and federal law and allowing states to set their own cannabis policies. In practical terms, that should enable interstate commerce and enable loosening or elimination of banking restrictions and other regulatory barriers restrictions that have severely hampered the industry. There are a lot of players in the market, but I think Item 9 Labs is uniquely positioned and staffed to capitalize on the new paradigm.

    - The merger with One Cannabis Group and its Unity Road franchise system makes Item 9 Labs the parent company with access to licensing candidates across multiple states, representing a many-fold expansion of product placement and sales. Unity Road's franchise guru, Mike Weinberger, joined the board at Item 9 Labs to provide continuing oversight of franchise recruitment and development. His encyclopedic knowledge of the many different state licensing requirements gives Item 9 Labs an edge when it comes to ramping up operations in multiple jurisdictions.

    - In anticipation of the expansion, plans have been made, permissions and licenses have been procured, and some of the work has already commenced and/or been completed to expand production capacity sufficient to meet rising demand.

    -Michael (Mic) Keskey joining the board is a huge bonus. He is a true innovator and was personally responsible for innovations at Best Buy that transformed that company into the industry leader back in the brick and mortar days of the tech revolution. He was later promoted to President of Best Buy. His association with Item 9 Labs can't be overstated for the credibility he extends to their management team and the direction the company is headed.

    -Management has been working hard to bring the company into compliance with SEC reporting requirements. The company has moved up the pink sheets ladder from the OTCQB to the OTCQX market. Whyen Congress inevitably passes legislation that clears the way for trading on the major exchanges, the company has the expertise to do so.

    -Jeffrey Rassas, Chief Strategy Officer, is well placed to lead the effort to a Nasdaq listing. He is a co- founder of Red Cat Holdings, which has just announced it has applied for listing on Nasdaq. He also co-founded Quest Resource Holding Corp, which trades on the NasdaqCM.

    -The company does fund some operations through the sale of stock, but they are very judicious in doing so and are attentive to the rights of common shareholders in that regard. There are approximately 100 million shares outstanding, of which 100 percent are common. There are no preferred series of shares as is so prevalent with start-ups and poorly managed companies. The expansion projects have been funded by sell of stock and the merger with One Cannabis Group was also funded with stock, to the tune of 19 million restricted shares and 23 million warrants. What I find very encouraging in that transaction is that fully one third of the restricted shares are being held in escrow with release dates timed at six, twelve, and eighteen month intervals. What that tells me is that the One Cannabis Group fully expect to see a significant appreciation in the share price over that time period and were willing to delay their compensation to achieve a fully actualized valuation of their company. I think that is not only brilliant, but also a sign of good stewardship on the part of Item 9 Labs management team. Yes, the merger will result in share dilution, but the full impact won't be felt immediately and should be easily absorbed as the company footprint expands.

    -Of the 100 million shares currently outstanding, 31.5 million are held by officers of the company and an additional 30 million are held by beneficial shareholders.

    -Officers hold warrants to purchase an additional 294,000 shares at varying strike points. All in all, the insiders hold a large position in the allotment of shares and that is always an encouraging sign for potential investors.

    You should do your own research. What I see is an extremely well-managed company that is well-positioned to fully exploit the opportunities presented by the MORE ACT. I am long on INLB!
  • G
    George
    Soon as you get to $ 5.00 then you get notice
  • T
    TheBlindHog
    Significant volume and share price increases after winning top honors in the High Times Cannabis Cup competitoin. That's great news and I am very happy to see yesterday's announcement that financing has been obtained for expanding Arizona operations. That is a departure - previous loans have been made by insiders. This loan carries a high interest rate but matures in 18 months and revenues look to be increasing at a rate that will put the company in a good bargaining position to renegotiate terms by then. What makes me happiest is that the company is not issuing shares to fund this purchase as that is further proof they have the shareholder in mind as they grow the business.
  • G
    George
    Where is the IR let us know what is going on??
  • G
    George
    Good news !!