This summer has been quite volatile for many small cap stocks with many retracing to lower levels. Although with the dog days of summer soon coming to an end, it’s time we go over our top four stocks we believe investors should put on their radar for the Back To School Rally. In this edition of Top Stocks To Watch Under $0.50, most have strong and growing revenue, large insider ownership, no debt and a bunch of catalysts you won’t want to miss out on!
Ayurcann Holdings Corp.
One of our Top Stocks Under $0.50 is Canadian post-harvest cannabis solutions company Ayurcann Holdings Corp. (CSE: AYUR) which went public back in April of 2021. What sets this Canadian cannabis company apart from the pack is the fact that the company has growing revenues quarter over quarter, large insider ownership of 45%, no debts on its books, a growing B2B business and growing product lines. We first wrote about AYUR last month and already the company is making large strides with their recent developments.
On August 05th 2021, AYUR announced that it entered into a manufacturing and distribution agreement with Israeli, based Innocan Pharma Corp (CSE: INNO) for the Innocan line of products. Under the agreement, AYUR will produce, manufacture, and hold an exclusive distributorship for INNO’s branded Relief and Go topicals and SHIR skin care products. The CEO of AYUR Mr. Igal Sudman stated “The pharmaceutical expertise of Innocan together with Ayurcann’s large extraction capacity and manufacturing capabilities will be combined to bring top of the line products to market at scale and price points that will allow for wide market access”. For this partnership AYUR will pay royalties to INNO based on net sales. Finalization of the agreement is subject to Health Canada approval.
Furthermore, Ayurcann recently launched its very own ecommerce portal for medical patients in Canada. AYUR opened the Ayurcann Marketplace to Canadian patients and now offers four (4) vapes under the Fuego brand and two (2) tinctures under the Xplor brand. As stated in the company’s press release, the company expects to increase its product offering and launch 3 more brands to the AYUR marketplace in the coming weeks. Added products and brands is a great way to not only potentially drive more revenue through a diversified SKU offering but potentially attract new customers to the platform from those wanting to try new brands.
Investors should take note that there are several key catalysts that could drive significant value which includes: an upcoming financial quarter which we believe may be a historical best for the company; the recent application to list its shares on the OTCQB market back in July which should bring added liquidity and; most notably the completion of its Phase 2 facility set for the second half of 2021. Once approval for AYUR’s Phase 2 is received from Health Canada, Ayurcann will add 100,000 kg to its production capacity, bringing it to a total 300,000 kg in a 10,842 sq. ft facility.
Increasing revenues, no debts, large insider ownership, an upcoming American listing, and a growing business with key catalysts which play a vital role in expanding its business are all driving factors on why AYUR is a Top Stock Under $0.50 investors should put on their radar for 2021. For deep insight into Ayurcann Holdings, check out our recent publication entitled “Ayurcann Holdings: Extracting Shareholder Value In A Growing Industry”.
Universal PropTech Inc.
Universal PropTech Inc. (TSX-V: UPI) (OTCQB: UPIPF) is a rapidly growing property technology company that is a must watch as a Top Stocks Under $0.50. We have been tracking UPI since the new year, and its growth trajectory so far has been quite impressive. With an increase to the company’s sales backlog over $6 million, no debt on its books, growing partnerships and its unique investment in artificial intelligence company ISBRG Corp., UPI has all the markings of a long-term winner.
The company has issued some interesting energy resources developments as of late, and includes joining a consortium with two engineering firms to develop unregulated thermal and electric microgrids for customers. UPI is attaching itself to delivering low to zero carbon energy systems. As well, UPI announced its partnership with Termobuild to include in its consortium designs of carbon neutral building solutions for Canadian developers. UPI reported that it is already discussing projects with possible customers for microgrid projects. In addition, UPI signed a partnership agreement with En-Powered Inc. to provide AI -driven energy savings to large industrial commercial customers avoiding global adjustment charges. Finally, they signed a letter of intent for the acquisition of exclusive Canadian rights to many microgrid technologies from the undisclosed microgrid energy services company. The company expects to finalize its due diligence process and enter into a definitive agreement with the unnamed microgrid energy services company within the next two months.
In addition to previous announcements on securing indoor air quality purifiers and monitoring capabilities, UPI has laid the foundation of having the key solutions ingredients to go after the market hard, and they say that for the second half of this year, as they embark on acquisitions.
However, as important as the recent developments may be for the company’s future growth, the market did not reward UPI in a favorably through the summer. We think that the market is awaiting much bigger developments surrounding the ISBRG deal and some blue-sky potential. ISBRG Corp., the makers of Spotlight-19, a non-invasive tool to detect the presence of Covid-19 in under 20 seconds.
Currently the company is conducting clinical trials at a Canadian border location. Investors are anxiously awaiting an update on its success and final leg of Health Canada approval. Also interesting is the fact that ISBRG Corp. is still listed as Active for lobbying efforts with Andrew Balfour of Rubicon acting as lead lobbyist for ISBRG Corp. We believe investors should have a lot of confidence behind the team of ISBRG Corp. as we previously highlighted. We think it is not a matter of “if” but rather “when” the execution occurs with UPI.
Zoomd Technologies Ltd.
A great technology company with a great balance sheet investors may want to pay closer attention too is Israeli based marketing technology company Zoomd Technologies. We first wrote about Zoomd Technologies (TSX-V: ZOMD) back in May of 2020 when shares of ZOMD were trading at $.32 cents. A month later, the stock rose to $.69 cents increasing 69% then in February 2021, shares of ZOMD rallied hitting a high of $1.50, for an ROI of 368% in just 8 month since we wrote about ZOMD in “Zoomd Technologies: From Start up to Blue-Chip Clients”.
Investors looking for some interesting information pertaining to ZOMD’s founders and management team should look no further than our article titled “Insight into The Angel Investors at Zoomd Technologies” for great in-depth information on the background on key figures at the company.
On July 26th 2021, ZOMD published impressive preliminary financial guidance. ZOMD expects to report approximately $11million for its first six months of 2021 with an adjusted EBITDA of $1.3 million in Q2 of 2021 compared to a loss of $-760,000 in Q2 of 2020. This would represent an increase of 96% year-over-year. In addition, the company expects its operating profit to be $600,000 compared to an operating loss of $1.33 million for the same period the year prior. As a result of its robust recovery, the company is maintaining its revenue growth guidance of 30% to 40%.
We think Zoomd Technologies definitely warrants a spot on the Top Stocks Under $0.50 as it is another great story that has a very clean balance sheet with no long-term liabilities, a growing customer base and growing revenue with improved margins. We believe that at the current share price, ZOMD is a company that investors looking to include some exposure in the small cap tech space may want to consider as the next few months may prove to be quite active as management continues to execute.
Digimax Global Inc.
If you’re feeling bullish on Bitcoin and are looking at crypto related stocks, DigiMax Global Inc. (CSE: DIGI) (OTC: DBKSF) is our pick for a Top Stock Under $0.50 in the crypto sector. DIGI has been gaining some traction lately and is set to announce some big developments investors won’t want to miss! DIGI has combined its extensive expertise in artificial intelligence and big data and applied it to the cryptocurrency market, creating CryptoDivine.ai, the predecessor to Crypto Hawk, one of the best price trend prediction tools on the market.
CryptoHawk.ai helps crypto traders make better trading decisions by providing them with key indicators on where the AI believes the price of certain coins will go. Useful and accurate price prediction technology would potentially lead crypto traders to higher profits and smaller losses, leaving out a lot of the guesswork and stress.
In early August, DIGI announced that the company’s predictive trading tool CryptoHawk provided returns of 44.9% on Bitcoin (BTC) and +22.1% on Ethereum (ETH) during a two-month period while Bitcoin only saw a net change of +5.1% and Ethereum -3.6% during the same two month period of June and July 2021. Thanks to its success in its price trend prediction technology, DIGI is set to officially launch its very own “CryptoHawk” based Crypto Hedge Fund based on August 31st, 2021.
In international news, DIGI began expanding its CryptoHawk technology services in the Asian crypto market when the company signed a recent collaboration agreement with Mr. Tony Tong, Co-Charman and Co-Founder of Hong Kong Blockchain Association, President of GlobalSTOx.io & APX.HK, and Council Member of International Digital Asset Exchange Association. Under the new collaboration agreement, Mr. Tong will assist DIGI to expand its CryptoHawk technology services in Hong Kong by completing key partnerships with the exchanges in Hong Kong and surrounding areas, and/or increasing the number of subscribers to the CryptoHawk platform in Asia. Mr. Tony Tong was quoted “We have known DigiMax and its founders since 2017 and we are impressed that they have withstood the test of time in the cryptocurrency and blockchain world”. Mr. Tong further commented “The CryptoHawk offering is already proving itself as an excellent tool for crypto traders to use to increase their returns and we look forward to working together to develop more markets in Asia with them.”
To further increase the company’s footprint in the Asian market, DIGI also announced that the company has entered a marketing collaboration agreement with The Wing Corp. a market leading influencer in blockchain and cryptocurrency targeted to the Korean market.
Shares of DIGI have more then doubled recently as shares of DIGI rallied 150% and hit $.255 on August 9th from its lows of $.10 cents on July 19th, 2021. The bulls were clearly in charge as DIGI soared 150% in 3 weeks. With Bitcoin approaching the $50,000 again and the launch of DIGI’s Crypto Head Fund around the corner we believe that the $0.255 high will be taken out and DIGI is a Top Stock Under $0.50.
Forward Looking Statements: This article may contain "forward-looking information" (as defined in applicable Canadian securities legislation) that is based on expectations, estimates and projections as of the date of the content is published on this website. Wherever possible, words such as "anticipate", "believe", "expects", "intend" and similar expressions have been used to identify these forward- looking statements. Information in this article has been furnished for your information only, is accurate at the time of posting, and may be superseded by more current information. Except as required by law, we do not undertake any obligation to update the information, whether as a result of new information, future events or otherwise. This article should not be considered as personal financial advice. Full Disclosure: Ayurcann Holdings is a client of the parent company of EquityInsight.ca. Directors of the parent company of Equity Insight may buy, hold or sell the securities before during or after this publication.