Abattis Bioceuticals Corp

Cosmetics, Nutrition, Cannabis

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Volume | Market Cap | Shares | PEG Ratio | EPS

Fundamentals.

ATTBF (OTC)

Recommendation: See Below

Abattis Bioceuticals Corp. engages in the aggregation, integration, and investment in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. It produces, markets, and licenses proprietary ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets.

abattis

Fundamentals

Profile:
HQ: Langley City, Canada
Founded: 1997
Facilities: Belleville, Ontario
Symbol: ATTBF (OTC)

Focus: Strong
Abattis Bioceuticals is a vertically integrated company with operational interests in cultivating, extracting, testing and the retail distribution of cannabis. Abattis Bioceuticals is focused on becoming a fully integrated cannabis company by building a portfolio of assets including their flagship cultivation site in British Columbia’s Gabriola Island, acquisition of 140 genetic strains, and a portfolio of nutrients formulated of emerging cannabis market.

Size: Weak
Market Cap: US $8.4 mil
Enterprise value: $5.56 mil
# of employees: 12

Markets: Strong
Primary:  Canada, USA
Secondary:   Europe
Subsidiaries: Majority Subsidiaries: iJuana Cannabis, BioCell Labs, Abattis China, Biocube Green Grow Systems, True Plant, Northern Vine, Phytalytics, Vergence Natural, Green Tree and Gabriola Green
Minority interests: None

Operations: Weak
Cultivation:
Present capacity: None
Future capacity: 126,000 sq. ft state-of-the-art production facility

Distribution:
Direct sales: None
Store networks: Through supply agreement with Shefield & Sons stores
Supply Agreements: Distribution Agreement with Shefield & Sons Tobacconists Inc. to sell the Abattis vaporizer line

Integration/Diversification:
Vertically integrated: Yes
Horizontally diversified: No

Financials:  Weak
Outstanding shares (diluted): 322.6 mil
Revenue last year: $8.3  mil
Revenue rank in cannabis industry: 132nd
EPS: ($0.24)

Management: Neutral
CEO: Rob Abenante
CFO: Kent McParland

Abattis’ management initially focused on pharmaceuticals but they became fully vertically integrated with a new management team which had experience in cannabis downstream businesses. Abattis’ CEO, Rob Abenante, has extensive experience in leadership positions at large public companies in agriculture technology and nutraceuticals. Abattis’ CFO, Kent McParland, has more than 15 years of experience working with leading financial consulting companies..

Branding: Neutral
Vergence is a bioceutical sales, marketing and branding company by Abattis which is focused on innovating health products for the fast-growing market. Abattis’ key products are targeted towards natural cannabinoid-enhanced goods.

Valuation: Weak
Current share price: US $0.0189
Price to Sales: 2201
52 Week Low/High: $0.0025 to $0.14
EV / Revenue: 216
Price to Book: 2.96

Financings: Neutral
By the end of September 30,2018, Abattis issued an aggregate of 46,364,017 common shares for an aggregate fair value of $27.5 million.

Risks: High
The risks of investing in any cannabis company are currently high given the newness of the market. The risks of investing in this company are higher given the low sales footprint currently and recent management missteps.

Recommendation: Weak
Abattis Bioceuticals is focused on becoming a fully integrated cannabis company by building a strong portfolio of assets including it’s flagship cultivation asset in British Columbia’s Gabriola Island, acquisition of 140 genetic strains, and a portfolio of nutrients formulated for emerging cannabis markets.

Abattis recently signed a distribution agreement with Shefield & Sons Tobacconists to sell its vaporizer line. They have acquired a number of companies over the year in their pursuit of being a vertically integrated company with operational interests in cultivating, extracting, testing and the retail distribution of cannabis.

Abattis recently completed a $25 million equity line agreement with Dutchess Opportunity Fund to file a registration statement with the U.S. SEC. According to agreement, This will cover the Abattis shares that may be issued to Dutchess under this financing.

Will its stock price improve in the long term? Less Likely

Abattis has a very strong liquidity position through equity offerings and the company is in a position to support its expansion strategies. Their strong liquidity position can be helpful for them in early stages of starting operations.

Abattis took a lot of toxic debt and notes in the past which they later converted into common shared at an extreme discount rate. This should be very concerning for investors. Early in 2019, the trading of Abattis common shares was halted as they failed to file their year end financial statements.

Abattis’ return on total asset (ROA) was 6.69 % which implies that it made a profit of $6.69 on every $100 spent on asset. This is normal as compared to the industry average. However, it showed return on equity (ROE) of (139.36) % which means that it generated huge losses on money invested by shareholders.

For these reasons, we think Abattis, at or near the its current price of $0.0189 a share, can be good investment opportunity—however as the price rises this opportunity will eventually disappear.

Recommendation: Weak
Abattis Bioceuticals Corp. engages in the aggregation, integration, and investment in agricultural technologies and biotechnology services for the legal cannabis industry developing in Canada. It produces, markets, and licenses proprietary ingredients and formulas for use in the biopharma, nutraceutical, cosmetic, and animal nutrition markets.

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