IGPK: a budding opportunity planting the seeds of growth
Hot on the heels of a promising new acquisition, another one hot on its heels and bolstered by recent federal moves to loosen the reins of marijuana law, Integrated Cannabis Solutions (OTCMKTS:IGPK) has quickly established itself as a promising but undervalued player in the growth of the fintech and medical/recreational marijuana industries.
As the latest moves by the Biden administration show, interest in the reclassification and likely legalization of marijuana at the federal level is growing, which could open the financial floodgates and generate a lot of investor interest. for companies in this growing industry. For investors looking for emerging undervalued companies with proven cannabis value, IGPK ticks many important boxes.
Earlier this month, Florida-based IGPK reached a $1.2 million deal to acquire the remaining 51% of Consolidated Apparel, which operates under the Native Outfitters and Incite Performance Wear brands. Both are leisurewear companies and bring about $400,000 in assets under the IGPK umbrella. Over the past 6 months, Consolidated Apparel has generated $675,000 in revenue, or 15% gross profit, representing a final purchase price of less than 1x sales. Consolidated Apparel also recently generated a lot of buzz by showcasing its products at the Surf Expo in Orlando, Florida, the world’s largest and longest running boardsports and beach/seaside lifestyle trade show. On an annualized basis, the popular niche apparel company grew 10% last year and is expected to quickly add more than $200,000 in additional revenue to IGPK’s bottom line.
The acquisition is the latest for IGPK, a development-stage company actively engaged in evaluating investment opportunities in early-stage companies, primarily in the fintech and medical/recreational marijuana industries. Closing of the remaining portion of the Consolidated Apparel deal brings a growing apparel brand entirely under the IGPK wing and provides a new avenue for revenue generation in its own existing markets and in support of portfolio companies wider of IGPK.
As indicated in the 8-K, the consolidated agreement includes approximately $400,000 of debt and stock as well as the assumption of existing debt into 175 million shares at an above-market price of $0.002. Since it was primarily a debt arrangement, it is minimally dilutive for shareholders. The terms of the deal also impose six-month selling restrictions and then only allow up to 18 million shares to be sold per quarter due to existing SEC rules. The terms, coupled with existing SEC regulations, effectively restrict sales until October 3, 2023. both would be positive developments for shareholders. It’s also important to note that the company has no toxic debt on its books, so the continued growth of its portfolio using non-dilutive and fiscally prudent means should give potential investors confidence. IGPK CEO Matt Dwyer and his team are proceeding cautiously with shareholder interests. in mind.
Having another brand under one’s umbrella also opens up the possibility of raising capital to execute the company’s expansion plans. The company has been actively working to eliminate the stigma of shell status in OTC markets. This acquisition is a key step in this process and makes it easier for current investors to liquidate the shares and for new investors to enter.
More growth to come
With the consolidated deal now complete, IGPK is looking to another promising acquisition that is fast moving and fits well into its business model. The company currently owns 49.9% of Sacramento-based GCTR Management, LLC, a cannabis management company focused on supporting compliant cannabis companies. GCTR specializes in providing real estate, construction designs, equipment financing, SOPs, accounting, product development, compliance and more to the growing cannabis industry. GCTR currently generates over $300,000 in revenue per month and is expected to reach $1 million by the first quarter of 2023. The company’s growing success and business model make it an attractive and immediately profitable addition that will grow. fit well into IGPK’s portfolio.
GCTR also owns over $3 million in tangible assets, primarily equipment, and generates additional revenue by leasing this equipment to its client, Houdini Labs. Earlier this year, IGPK’s wholly-owned subsidiary, Integrated Holding Solutions, Inc., acquired 49.9% of GCTR in exchange for 598,800 Series B preferred shares of the company. IGPK will soon exercise the option to acquire the remaining 50.1% in exchange for an additional 601,200 Series B shares. The company said its goals are to generate $15 – $30 million in revenue.
The company continues to search for other potential targets, seeking new acquisitions to increase revenue throughout the coming year.
Earlier this month, the Biden administration not only sought to pardon people who committed simple federal marijuana-related offenses, but also called for a review to determine whether or not marijuana should remain classified as a drug substance. Annex 1. The Annex 1 classification significantly restricts financial capabilities and access to markets and loans for companies operating in space as well as their ability to raise funds and generate investment. It also drives many companies out of US-based exchanges.
The reclassification could solve these problems, triggering a tide of capital flooding the cannabis markets. At the same time, legalizing recreational and medicinal marijuana at the federal level would open up the entire United States, spur competition and increase research, eliminate legal complexities, and lend an air of greater legitimacy to this nascent industry.
Companies such as IGPK, which are established in the space, could see increased interest from the retail and institutional investment communities, find it easier to raise capital, reduce the costs of doing business and be in able to tap into a much larger market, which is expected to grow by 14.9% to nearly $200 billion.
A cautious approach
The recent acquisitions and the manner in which they were made demonstrate that Dwyer and IGPK wish to shake off the lingering side effects of empty shell status and move forward in achieving their short and long term goals while maintaining their value – and the interests of shareholders – in mind. The company also recently approved the creation of two new independent positions on the Board of Directors, members to be appointed, affirming its commitment to sound corporate governance.
As these acquisitions are soon to be concluded, IGPK is also focusing its attention on the conclusion of its ongoing audit. Once the audit is complete, the company and its acquisitions will be consolidated and on the books under a new organizational structure, with the total value increasing from $1.2 million today to approximately $12,000,000, an increase by 900% almost overnight. The company then plans to move forward with strategic plans to climb into OTCQB followed by OTCQX.
For existing investors, IGPK’s recent acquisitions have demonstrated shareholder commitment and ongoing plans to adhere to strict corporate governance and tax standards should provide reassurance that the company is proceeding prudently in keeping mind the interest of shareholders.
Led by seasoned CEO Dwyer, IGPK charts a solid growth trajectory bringing work assets and generating revenue from day one. The company maintains a healthy balance sheet and has demonstrated its ability to execute.
Combining these qualities with audited financials and a strategic plan to improve and change attitudes toward the cannabis industry at the federal level, IGPK presents a compelling, low-risk opportunity with a market cap of $2.3 million. dollars for potential investors looking for early entry into an undervalued gem offering unique offerings in what will likely be a high-growth industry.
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