CSA/A CN

AYR Strategies Inc - Ordinary Shares (Sub Voting)

Consumer, SPAC


Presented:03/19/2019
Price:CA$20.50
Cap:$0.21B
Current Price:CA$1.85
Cap:$0.18B

Presented

Date03/19/2019
PriceCA$20.50
Market Cap$0.21B
Ent ValueN/A
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S13.48M
Ave Daily Vol15,025
Short IntN/A

Current

PriceCA$1.85
Market Cap$0.18B
Cannabis Strategies Acquisition Corp. operates as a special purpose acquisition company. The Company focuses on acquisition of assets by way of a merger, amalgamation, arrangement, share exchange, asset acquisition, share purchase, and reorganization.

Publicly traded companies mentioned herein: Cannabis Strategies Acquisition Corp (CSA/A CN)

Highlights

The presenter is long shares of Cannabis Strategies Acquisition Corp (CSA/A CN; “CSA”), which recently announced the acquisition of five (5) companies to “de-SPAC.” On March 18, CSA shareholders approved the qualifying transaction that resulted in the combination of Washoe Wellness, The Canopy, Sira Naturals, LivFree Wellness, and CannaPunch of Nevada all under one roof (99.9% of the votes were in favor of the transaction, which is expected to close in early April). With the stock currently trading at ~C$20, the presenter calculates the market cap to be ~C$860MM (~C$640MM EV) and given guidance for 2019 revenue and adjusted EBITDA of C$260MM and C$140MM, respectively, the risk/reward setup favors bulls. At just 4.6x the 2019 EBITDA guide and with optionality around M&A activity, the presenter believes there could be considerable upside for shareholders over the next 12 months.

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Idea Discussion

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