Light Research, But This Looks Like a Bargain at First Blush.
CFN Media is now a publicly-traded company and it looks like a bargain to us.
Not much revealed in press releases, so patchwork together these SEC filings below to gauge yourself if this is indeed a bargain!
First, long-struggling Accelerize which provided services to ‘optimize the performance of digital marketing returns on investment’ decides to jettison their main business, which did about $20 million/year in sales – but found profits elusive, for roughly $20 million.
Most of that went to pay down debt (see SEC filing for details). There were roughly 66 million shares outstanding at the time. And it’s always a good thing for both employee/management spirits, to pay down millions in debt in one fell swoop!
Then last week they released a 10Q detailing what they pivoted into (CFN details that is).
ACLZ Acquires Assets of Cannabis Financial Network
“The closing of the asset purchase occurred on June 20, 2019. Pursuant to the terms of the Emerging Growth Agreement, the Company acquired certain assets of CFN from the Seller for a purchase price consideration consisting of $420,000 in cash, 30,000,000 shares of the Company’s common stock valued at $2,700,000, and 3,000 shares of Series B preferred stock valued at $687,000. As a result, the total purchase price amounted to $3,807,000.”
So now we’re up to roughly 100 million shares or roughly a $5 million market cap.
And the numbers (revenues) at CFN Media don’t look too bad – for a $5 million market cap. $2 million in revenue last year and $560,000 for three months.
CFN’s primary market currently is private and publicly-traded cannabis companies, which is currently a ”good thing,’ that could turn into a ‘not so good thing’ if the sector deflates. On the flip-side, now that they have the systems and processes down pat, there is no reason they couldn’t extend into other sectors (think Biotech, Bitcoin, Gold, Technology, etc.).
The platform can additionally be expanded from the web, to include video, print, and conferences.
So we wouldn’t think CFN Media as a ‘cannabis play’ – but rather an emerging advertising play that could provide solutions for many industries.
Logically speaking.
That’s all for now, not a client. Worth a nickel? We think so.
INSIDERS 4/19
13D FILING DARREN DAYTON: 30,793,667.
Pursuant to the most recent available filing with the Commission by the Company (Form 10-Q filed on May 20, 2019), 66,179,709 shares of Common Stock were outstanding as of May 20, 2019. The Company subsequently issued 33,500,000 shares of Common Stock on June 20, 2019 in connection with the Asset Sale and other transactions, such that 99,679,709 shares of Common Stock were outstanding as of June 20, 2019. The Reporting Person may be deemed to beneficially own 30,793,667 shares of Common Stock, or 30.9% of the outstanding Common Stock, which includes 30,000,000 shares of Common Stock issued to Emerging Growth LLC for which the Reporting Person disclaims beneficial ownership.
