Speculative investors interested in high-risk-high-reward opportunities should keep an eye on Indoor Harvest Corp. (OTCPK: INQD). While the company currently trades on the OTC Pinks, it could quickly graduate to higher ranks if business traction grabs as planned. Targeting the booming hemp and wellness-related markets, INQD is certainly in the right sector at the right time to make that happen. However, INQD is more than just a pure product play. The company enhances its core focus by incorporating proprietary technology, accretive mergers and acquisitions, strategic partnerships, and joint ventures to capitalize on revenue-generating opportunities within adjacent sectors. Despite currently trading at $0.0016, history shows there can be a significant upside, noting INQD stock traded as high as $0.0129 in the past 52 weeks. Considering the company is better positioned today than ever in its history to turn ambition into revenues, re-claiming that level – 687% higher than its current price – may be a viable near-term target
The company is doing its part. In August, INQD announced its engagement with Academy Award-winning film producer Jonathan Sanger. His credits include well-known films, including "The Elephant Man," "Marshall," "Vanilla Sky," and "Mission Impossible 2," starring blockbuster star Tom Cruise. Not only can this project be a game-changer for INQD's charismatic leader, Leslie Bocskor, but it could also bring attention to a company that, despite its sub-penny share price, is on track to generate potentially substantial shareholder value.
Part of that value could come through the production itself, with INQD hoping to capitalize on working with the iconic veteran film and television content producer to create an original series. The series, currently titled "INQD" (pronounced Inked), features Bocskor and his team of experienced business-industry veterans and aims to deliver an entertaining "economic version" of the 1980's hit series "The A–Team." The action follows the group's search to find diamond-in-the-rough companies as Bocskor and crew lend their expertise, insight, and industry connections to help them recognize intrinsic and inherent values.
Leveraging Powerful Relationships to Generate Value
It might sound far-fetched, but this deal can significantly impact INQD valuations. And yes, this is the same Johnathon Sanger that has won an Academy Award for short film and a BAFTA Award for Best Film. Showing his interest, Sanger said, "I'm really excited to be working on this project with Leslie... I've been a huge fan of Leslie's for years and now. Being able to watch him work his magic and turn companies around, through the lens of my camera, is going to be amazing. The world will be able to see what we've all been watching him do for years. At a time when most people just talk, Leslie Bocskor actually does the work to help make companies better." That's quite an endorsement.
Sanger’s enthusiasm indicates that there is tremendous value to be had. Remember, filming isn't cheap. Moreover, few producers, if any, make content no one wants to watch or read. Thus, take the endorsement as one that may expose a significant valuation disconnect. But like many others, that opportunity may close sooner rather than later, resulting from the project earning the respect Sanger thinks it will deserve.
Producing a mix between "The Profit" and "Shark Tank" is the intent. INQD described the planned production this way, "The name of the show says it all... it's "INQD"... we don't just talk about deals, we INK them!" And there is plenty to prove that point, noting that Bocskor has been helping develop companies for decades, taking them from start-ups to thriving ventures. Turning that into a show may provide more than just entertainment; it also presents an enormous economic opportunity that INQD expects will lead to job creation, investment, revenues, and liquidity for the businesses highlighted.
INQD Value Drivers Extend Beyond Programming
While that planned production could be a significant value driver – more than enough to re-claim 52-week highs – it's not the only one in play. In May, INQD announced the acquisition of a 60% controlling interest in Metabiogenix USA® for $2.5M, paid for with cash and common stock. That deal is proving to be a good one, with INQD noting that Metabiogenix USA® received an $8.9M USD valuation from the Japanese Medical Institute (JMI). It's more than valuable on paper; it justifies a higher INQD market cap. In fact, at its current $4.79 million, the company stock is valued less than that asset's book value, which for INQD's stake amounts to $5.3 million. In other words, INQD appears undervalued based on the value of its Metabiogenix USA® stake alone. Moreover, considering that valuation made at the time of the deal’s closing, it could be worth even more today.
Its acquisition agreement with Metabiogenix USA® offers more for Indoor Harvest than a boost to its balance sheet. The deal also provides INQD with an exclusive agreement to market and distribute Metabiogenix USA® Nutraceuticals throughout the Western Hemisphere (North, South, and Central America) and Spain. Don’t underestimate the potential of this value driver: INQD expects that Metabiogenix USA® revenues could reach as high as $20M for FY2024. It's a game-changing forecast for INQD, and it's not unreachable.
INQD will benefit further from joining business and intellectual forces with Dr. Mario Acosta Mejia, a well-respected academic who earned his Ph.D. in Clinical Pharmacology from the University of Cambridge, England. Since then, he has been an Academic and Researcher at various Universities in Mexico, presented at more than 2,000 conferences, and authored four books: two on Pharmacology, one on Public Health, and one on Medical Humanism. He has also received the "One of the 30 Brilliant Minds of Mexico" Award from Discovery Channel and Grupo Expansión. That's not all.
Dr. Acosta is the Founder and National President of the Alianza Médica Fraternity, which brings together more than 30,000 Doctors throughout Mexico, and is currently General Director of the Center for Bioequivalence Studies as well as Principal Clinical Investigator at the Japanese Medical Institute in Tokyo, Japan. In other words, he's a valuable addition and undoubtedly worthy of contributing to INQD's valuation, especially in his capacity to help INQD capitalize upon and monetize its unique health and wellness products.
Indoor Harvest Targets Health and Wellness Market Opps
Keep in mind that health and wellness products are a part of a red-hot sector. Standing out among the competition in these areas can be advantageous, and that's precisely where INQD expects to shine. They are focused on benefiting financially from the evolution of wellness and health technologies that use Probiotics as their foundation. Currently, they are being evaluated by the Japanese Medical Institute to work towards improving the life expectancy and quality of life of people worldwide. Notably, Japan has the longest life expectancy, with an average lifespan of 87 years. Importantly, from an IQSD perspective, Dr. Mejia, who Co-Founded and remains President of Metabiogenix USA®, was among the original Principal Clinical Investigators at the Japanese Medical Institute and was instrumental in developing Metabiox®.
The products developed represent a new class of health and wellness products that could aid in revolutionizing preventative methods worldwide by bringing education and tools to doctors and medical practitioners. Metabiox® was certified as a new class of therapeutics in December 2021 by COFEPRIS, Mexico's equivalent to the US Food & Drug Administration. That came after 10 years of extensive research and several clinical trials in Japan and Mexico, where Metabiox® proved its value in helping thousands of patients in Mexico regulate cellular metabolism, restore metabolism and pancreatic function, reverse inflammation and markers of liver dysfunction, reinforce intestinal motility, and reset the sleep-wake cycle.
Acquisition of Opportunity Development Corp in 2023
Other value drivers are in play. In May, INQD announced completing its acquisition of Opportunity Development Group, LLC, and its subsidiary 369Hemp, Inc. in a cash and stock deal. The acquisition introduces another compelling asset to the INQD portfolio. 369Hemp®'s mission is to pioneer the creation, production, and distribution of hemp cigarettes utilizing time-tested techniques from master hemp growers and cigarette manufacturers. Its 369Hemp® products are created of the highest caliber in a 30,000 sq ft facility in North Carolina. Marketed brands include 369Hemp® and white-labeled hemp cigarettes, sold online directly to consumers, in-store retail, and wholesale markets. Estimates from Hemp Industry Daily expect the smokeable hemp market to reach $300-400M by 2025. That potential again exposes value not yet accrued to INQD's share price.
In addition to the innovation inherent in its new brands that target sales from the smokeable hemp industry, INQD benefits from 369Hemp®'s team and technology to market, manufacture, and distribute hemp cigarettes globally. Remember: in this case, earning even a little can be worth a lot. Securing even a tiny percentage of a $300 million market can be transformative from a revenue perspective, fueling INQD’s share price to increase sooner than later.
Travis Priddy, CEO and founder of 369Hemp® said, "We have created an authentic, true quality alternative cigarette to what most smokers are currently accustomed to with manufacturing efficiency at speeds to scale. We designed a system to run premium biomass and use the best grade material which is hemp flower that is USDA compliant farm regulated hemp, registered, and certified by the state of North Carolina. Indoor Harvest will help us lay the foundation to create the Gold Standard to deliver on the promise of a truly healthy alternative for smokers."
He should know. Travis Priddy is a seasoned cigarette industry sales executive and entrepreneur with more than 20 years of experience. He has previously worked for Altria (NYSE: MO) and Philip Morris International (NYSE: PM) in both domestic and international markets, focused on national sales and merchandising, new business development, and new product launch strategies in a variety of countries. Retained under an employment agreement as President of 369Hemp®, he, too, can be considered a value driver.
A Low-Priced Value Proposition in Indoor Harvest
Admittedly, nanocap investments aren't for everybody. However, if one can be found with delineated potential, seizing the opportunity may prove wise. In this case, at $0.0016, the INQD share price may not accurately portray Indoor Harvest's intrinsic and inherent value and potential. The company does not publish much news, but what's been said recently has value over and above the current appraisal.
In fact, it's tough to find a sub-penny stock attracting the attention of renowned public figures. INQD is doing that and more, positioning them to capitalize upon at least two red-hot sectors: health & wellness and hemp. Both present market opportunities in the hundreds of millions, indicating the low price in Indoor Harvest stock may be better recognized as an opportunity rather than a deterrent. A look at the links embedded in this story shows that this company is doing some big things with industry-leading professionals.
Moreover, INQD has its own high-profile leader with a proven track record of business development. In other words, given the combined value of its products and team, INQD’s current share price may be more than a bargain; purchasing at sub-penny levels could be considered legal larceny.
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