Indoor Harvest Corp. (OTCPK: INQD) proves that nanocap-sized companies, even those trading at sub-penny levels, can score big-time deals. Indoor Harvest completed two in as many weeks. Last week, INQD announced signing a joint venture collaborative agreement with MjLink.com, Inc. to create and provide a platform allowing fast-growing sustainable hemp and CBD sector companies the opportunity to grow bigger faster by introducing access to capital and broadening their business relationships.
The deal makes more than business sense; it's accretive to both company's growth strategies. That benefit results from INQD working with MjLink through an advisory role over the past four years and being an integral part of MjLinks' business model evolution. The agreement should take MjLink to the next level by establishing a foundation for business growth and introducing additional collaborative opportunities with industry CEOs and thought leaders in various sectors. Here's where the deal gets more interesting.
There's a third player involved. In September, Decentral Life, Inc. (OTCPK: WDLF) (OTCPK: WDLF) announced a Binding Letter of Intent with MjLink.com, Inc. that outlines the outright purchase of the business, materials, and services of MjLink. In other words, the Joint Venture agreement between MjLink and Indoor Harvest Corp will transfer to Decentral Life following the completion of the acquisition, creating more revenue-generating firepower than initially expected.
Creating A Targeted Hemp And CBD Business Platform
Decentral Life, Inc. is a Colorado-based SaaS company that utilizes state-of-the-art Blockchain and AI-empowered technology to connect and empower businesses, consumers, and investors together in the legal CBD and hemp industry through license agreements, serving as a Technology Business Incubator and providing tech start-ups with executive leadership and consulting services. In simpler terms, they make it easier for start-up founders to focus on raising capital, perfecting their business model, and growing their customer base. And not just in a few sectors; they target earning business from numerous, including the residential real estate industry, the legal global CBD industry, and sports verticals, including racket sports, golf, cycling, soccer, space exploration, motorsports, travel, hunting, fishing, and camping. In short, they bring substantial revenue-generating potential when working with INQD.
Once all the pieces settle, the Joint Venture agreement between MjLink and INQD combines to contribute to the business efforts of Decentral Life post-acquisition. And keep in mind that the growth pace speed isn't starting from zero. MjLink and INQD have been working toward this agreement for the past 18 months, strategizing on the best path forward to combine business strengths and interests to assist emerging businesses to capitalize on lucrative sector opportunities. Additionally, the platform provides greater access to industry investors, investor relations specialists, and other resources designed to expedite client company growth.
Those resources go beyond providing a leading technology platform in the sustainable hemp and legal CBD sector. They also leverage MjLink's position as the publisher of WeedLife.com, HempTalk.com, and MjInvest.com, complimentary networking platforms designed to connect business professionals, industry enthusiasts, C-suite executives, and investors to expedite the growth of the global both business sectors.
A Value Proposition Exposed
Combining the deals in the queue with assets owned, it's fair to suggest that INQD is better positioned today than when it scored its 52-week high of $0.129, 800% higher than its current $0.0014*. And it appears investors are recognizing the gap. Last week, INQD shares surged to an intraday high of $0.0019, a 58% increase from the same period low. Notable as well, volume surged during the period to over 5X its prior average of roughly five million shares traded daily. If the adage "volume precedes price" holds true, that intraday high could be part of the road toward re-claiming its 52-week level. (* share price on 10/16/23, Yahoo! Finance, 11:16 AM EST)
INQD is doing its part to make that happen. In addition to its September and October updates, the company announced its engagement with Academy Award-winning film producer Jonathan Sanger in August. His credits include well-known films, including "The Elephant Man," "Marshall," "Vanilla Sky," and "Mission Impossible 2," starring blockbuster star Tom Cruise. This project can be a game-changer for more than INQD's charismatic leader, Leslie Bocskor; it could bring attention to a company that, despite its sub-penny share price, is on track to generate potentially substantial shareholder value.
Value in INQD stock could accrue from the production itself, with INQD intending to capitalize on working with the iconic veteran film and television content producer to create an original series, currently titled "INQD" (pronounced Inked), featuring Bocskor and his team of experienced business-industry veterans 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. Then Bocskor and crew lend their expertise, insight, and industry connections to help them recognize intrinsic and inherent values.
The deal might sound far-fetched, but it's real. 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.
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 be more than entertaining; it presents an enormous economic opportunity that INQD expects will lead to job creation, investment, revenues, and liquidity for the businesses highlighted. Producing a mix between "The Profit" and "Shark Tank" is the intent.
INQD Value Drivers Support The Bullish Proposition
While that production and the deals with Decentral Life and MjLink can be significant value drivers, they aren't the only ones. 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. According to INQD, Metabiogenix USA® received a $8.9M 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. And that value was at the deal's closing. It could be worth more today.
That's not all. Those deals show that Indoor Harvest has yet to lose value-generating momentum. Instead, it's gaining, noting this acquisition alone provides INQD an exclusive agreement to market and distribute Metabiogenix USA® Nutraceuticals throughout the Western Hemisphere (North, South, and Central America) and Spain. And it's no small opportunity. 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.
On the contrary, it can be reached by INQD 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. There's more to appreciate.
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 and monetize its unique health and wellness products.
INQD Leveraging Its Interests In Red-Hot Health And Wellness Sectors
Its interest in the red-hot health and wellness markets puts INQD in the right markets at the right time. 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 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.
Other value drivers are in play.
INQD Acquired Additional Accretive Assets In 2023
INQD acquired Opportunity Development Group, LLC, and its subsidiary 369Hemp, Inc. in a cash and stock deal in May. This asset is compelling as well. 369Hemp®'s mission is to pioneer hemp cigarettes' creation, production, and distribution 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. Moreover, earning a little can be worth a lot since even a tiny percentage of a $300 million market can be transformative from a revenue perspective, fueling an increasing share price. That could happen 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."
Travis Piddy should know. He's 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.
An INQD Value Proposition Exposed
While INQD may not publish much news, when they do, it's generally of the value-creating type. Thus, with several announcements showing an aggressive pitch to re-claim a more fair valuation, including value inherent from a forward-looking perspective, INQD stock presents a value proposition worthy of consideration. Remember, despite its sub-penny share price, INQD has attracted the attention of renowned public figures. Additionally, they have a growing market presence in two multi-million dollar sectors, health and wellness and sustainable hemp. INQD's new agreements can expand business reach into several more.
Combining the sum of INQD's parts, plenty is happening to create higher and, as importantly, sustainable shareholder value. While investing in sub-penny-priced stocks may not suit every investor's taste, INQD provides ample tangible evidence supporting a higher valuation. That upside is what's universally attractive to growth stock investors. And at $0.0014, INQD stock more than deserves a look; it's earned that privilege.
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