PSInvestor Follows Up on Bahamas Development Corporation $BDCI – Company Continues to Deliver for Shareholders, Stock Price Rising

  • Promised additional 1 or 2 Deals in April and Delivered
  • Press Keeps Flowing – Deals & Private Placements
  • Limited Dilution, Raising Money WAY above market
  • Share Price has nearly TRIPLED since our initial article
  • Favorable Share Structure with 37 million in Float
  • Gross Revenues of $160M if they utilize 800 acres of farmland

 

Bahamas Development Corporation (BDCI) seem to be transforming into Cannabis Consortium just less the name change.  It’s been 4 weeks to the day since we put out our initial article on Bahamas Development Corp. “BDCI” in the $0.03 range, tipping our readers to look deeper into the company’s recent press promising more deals and announcements in the coming weeks. BDCI which had hit over .10 on a massive volume day, fell back to the .03 range (a justifiable 67% correction) and was ripe for hungry investors to not only play the security for a bounce, but ride the anticipation looming of 2 more upcoming press releases. The signs that more news was coming was about as subtle as a jackhammer.  Without fail, by mid-April BDCI delivered, and sure enough the stock price bounced as well.

On the 12th of April, Cannabis Consortium (a subsidiary of BDCI) and its partners acquired an exclusive license to manufacture and distribute in California the entire range of THC and CBD products belonging to an award winning Edible Infused Candy Company. The Candy Company is also headquartered in California. The Edible company had $2 million in revenues for the 12 months prior and came with an additional $600k in pending orders.  The Edible Company currently has distribution in approximately 400 retail outlets. They give Cannabis an instant and expanded network to distribute its non-competing products in CA while working with its current Cannabis Distillate partners’ distribution channels in California and Oregon.

A day later, on April 13, 2018, Cannabis Consortium, Inc. made an offer to purchase a 2,700 square foot building in a lot in the Green Zone in Northern California for the new Edible company. The building will be leased to Cannabis’ operational Partners to run Infused Edibles www.infusededibles.org.

A week later, a 2nd deal as hinted and promised, as advertised, and as delivered… BDCI announced on April 20, 2018, entered into the distillate business by acquiring an extraction machine for $200k. This will allow them to manufacture their own oils and will also be used to produce private label Oil for third parties, of which, Cannabis’s Partners has already lined up 5 white label partners. Projected Net revenue for 12 and 24 months is $6,000,000 and $10,000,000 respectively.  The margin in the oil business is well over 50% in most operation and is the most lucrative segment of the industry.

 

Above Market Deals Done — Capital Raises at a Whopping $0.50+!!

So, the company delivered with 2 more deals, and finished out the month of April working diligently on financing these new projects and doing so with private placement money way way above market. At PSInvestor, we are still baffled investors have not taken to this 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.

The details from the $1M private placement are as follows:

  • $800,000 sold at $0.50 (1,600,000 shares)
  • $200,000 sold at $0.75 (est. 266,666 shares)
  • $375,000 to be sold at $1 (375,000 shares)

So, we ask our readers, if an investor is willing to put nearly $1 million into this deal at prices between $0.50-$1, how good of an investment is BDCI while it’s still trading under a dime? Keep in mind that all these assets and revenue streams flowing under Cannabis Consortium only diluted the company by 1.2%!  Another interesting question is why didn’t the investor just buy these shares on the open market? The 50 day moving average of volume is 2.4 million shares.  Since 4/23/18 the past 6 trading days the stock has traded 32.6 million shares.  The reason that is significant is because the float is 29.0 million shares.  It’s had no movement and the entire float has traded!  Is there a naked short playing with the stock?  The old saying if it looks like a duck quacks like a duck, it’s a duck.  Regardless, investors need to realize that this private investor is not in the game to lose money and they do not make anything until their shares are trading above $0.50, something to really digest.

BDCI did not stop at the $1M, as announced on April 26th, 2018, they secured a second Private Placement of $375,000 to plant 15 acres of hemp on a 1,400 acre farm to validate crop yields and document actual income streams accruing to the Company. Cannabis estimates the initial 15 acres will net $1,425,000 of which Cannabis will receive its initial investment of $375,000 back, plus an additional 15% of the net.

Puzzle Pieces Coming Together: Hemp Fields + Oil Extraction Machine + Edibles = Money

A key piece of the puzzle, the hemp fields, will now allow BDCI to grow future product. A soil sample was taken prior to receiving the financial commitment from the investor, and the soil test was returned from the lab in good standing, proving there are no toxins or pesticides present. The 15-acre hemp test plot is being prepared now, and planting is scheduled for May 2018. The farmer estimates two crop grows 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. These numbers will make any investor salivate – the potential revenues, the profit margin and the eventual growth and expansion from 800 to 1400 acres. BDCI in just a short time, is painting a detailed picture for the future of this green friendly company.

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.   The company has been working strategically to capture a piece of the pie within the hot Cali Cannabis space via partnerships and deals.

Share Structure

The stock has 182,687,610 shares issues and outstanding but only 29,021,900 shares are in the float according to OTC markets.  The market capitalization is approximately $16 million.

Investment Summary

The company is really starting to morph into a play on the hot Californian Cannabis market.  The company can support a much higher valuation because it is resembling 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 $0.07, but hit an intraday high of $0.094 after a morning in which it looked as if investors fully digested the significance of the recent private placement be priced at $0.50 and higher.  With smart money investing at much higher levels there exist only 2 possible outcomes.  Smart money is not so smart or the investing public doesn’t believe it’s real.   With a CEO that seem to use a sledgehammer to forecast future acquisitions investors might do well to heed his warning.  Bigger and better is coming and it doesn’t take much to connect the dots.

 

Disclosure/Disclaimer: PSInvestor.com has not been compensated for the above mentioned article, it does hold a long position in the company purchase in the open market. To read our full disclaimer, please click here.

3 Comments

  1. Great article on BDCI. I have owned TGGI now 3yrs. I had to file bankruptcy my business, Being a shareholder with TGGI, will be a blessing. I will Buy some shares of BDCI, When TGGI starts to become profitable – and generous to it’s shareholders. Hopefully Hemp will help relieve and heal illness and diseases for all people. This is a great article on both BDCI, TGGI. Thanks, Richard

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