The month of March was a volatile month, with many indices including the S&P 500, Nasdaq, Russell 2000 experiencing a pullback. The CSE Composite Index fell from the highs of 979.08, to the lows of 857.31 at the close of March 29th, 2021. At the beginning of March, we put four stocks in a variety of different sectors, and today we will be going over some of the developments that transpired over the course of the month and which stock performed the best.
Rritual Superfoods Inc.
Rritual Superfoods Inc. (CSE: RSF) is a newly listed stock that began trading on the CSE on March 8th 2021 and shares of RSF have traded tremendously well since the start of its IPO. Rritual Superfoods operates in the health & wellness industry targeting a growing segment within the industry known as superfoods. Under its Rritual brand, RSF offers customers a premium brand of mushroom and adaptogenic elixirs through 3 core products, Chaga IMMUNE, Reishi RELAX and Lion’s Mane FOCUS.
On March 11th, 2021, announced that the company has successfully completed its full scale manufacturing run, which resulted in 50% larger output when compared to its first initial run. The company also stated that its third manufacturing run will begin in April and RSF is anticipating an increase of 200% in manufacturing output. “The early feedback we’ve had from consumers and prospective retail partners is very encouraging.” The CEO of RSF Mr. David Kerbel stated “To meet expected demand, we have ramped up securing raw materials and scheduled commercial scale production runs. Maintaining a consistent and scalable manufacturing cycle is a core focus as we look forward to bringing our products to the major retailer shelves soon.”
In addition, RSF recently nominated Ms. Stacey Gillespie as its Chief Innovation Officer. Ms. Gillespie has an extensive background within the health and wellness industry, having served as the Director of Brand Strategy and Director of Product Strategy for Gaia Herbs and was a Lead formulator for MegaFoods. Having graduated with a Bachelor of Science and Majoring in Human Nutrition at the University of British Columbia. Ms. Gillespie’s new role as CIO at RSF will be to position the Rritual brand as a leader in the functional food market.
This morning Rritual Superfoods announced that the company will be launching its premium mushroom elixir brand Rritual in Rite Aid stores across the United States! Rritual branded products are set to hit the shelves in Rite-Aid stores during Q2 and Q3 of this year! The CEO of RSF, David Kerbel stated “This first national retail rollout is a major achievement for the Rritual brand. It validates both supply and demand for the category, specifically, our product quality and the rapidly growing interest of consumers in functional superfoods”. Today’s announcement with Rite-Aid is a testament to the experience and focus of the company’s leadership and speaks to the demand for the young Ritual brand as it partners with a nationally recognized company like Rite Aid which boasts over 2,600 stores in the United States.
Rritual Superfoods (CSE: RSF) saw its shares rise 175% in the month of March, as shares of RSF hit a high of $.99 cents from its IPO price of $.36 cents. Furthermore, Clarus Securities recently issued a speculative buy rating on Rritual Superfoods with a price target of $1.50 per share! While only being publicly traded for less than a month, investors should keep RSF on their radar as we believe RSF is just getting started in rolling out its premium brand and RSF is gearing up for more tremendous growth in 2021!
Universal PropTech Inc.
Another stock we believe to be undervalued that we put on the list for the month of March is Universal PropTech (TSX-V: UPI). At the beginning of March, UPI announced that the company has submitted its application to OTC Markets Group for its securities to begin trading in the United States. Upon further digging, we discovered that the company’s US ticker symbol will be “UPIPF”. We expect that shares of UPIPF will begin trading in the US OTC market in the coming weeks.
On March 17th 2021, UPI announced that it was calling the remaining convertible debentures for conversion, making UPI absolutely debt free in the process. The CEO of Universal PropTech Mr. Chris Hazelton was quoted, “I am excited to announce that we are debt free, and we have further improved an already strong balance sheet with additional cash from exercised warrants and options. We have cash to support the growth of our business lines and the investment in ISBRG Corp. and additional investment opportunities that may present themselves”. This is a major development for Universal PropTech, as now UPI has no more debt on its books, and this is extremely rare for a junior company trading at $.40 cents to be debt free!
Universal PropTech recently added a major member to its advisory board. On March 17th, 2021, UPI announced that the company has appointed legendary trader David Berry to its Advisory board. Mr. Berry is best known as Scotia Capital’s best trader, heading the banks preferred shares division, later cornering 62% of Canada’s preferred share market. Mr. Berry stated “I am very excited by the opportunity assist UPI with its continued growth. In particular, I am looking forward to lending my expertise and leaning on my considerable business connections while helping UPI with its investment in ISBRG Corp and SpotLight-19,”. Mr. Berry is a great strategic addition to UPI’s Advisory Board as the company continues to forge forward with its growth strategy this year.
Kontrol Technologies Corp.
For those who follow our publications know that we have been following Kontrol Technologies Corp. (CSE: KNR) (OTCQB: KNRLF) closely especially since the company announced its new air borne detection device Kontrol BioCloud. In March, the company has issued various clips of its BioCloud in different locations which included a Restaurant in Ontario, the Foyer Retirement home as stated in its March 19th press release and in the locker room of the OHL’s London Knights.
Last week, KNR announced that the company has teamed up with the Canadian Sport Institute Pacific to provide athletes the ability to train in a safe space environment located at the Whistler Athletes Centre in Whistler, British Colombia. CSI’s Pacific Chief Medical Officer Dr. Paddy McCluskey was quoted "We are excited to add the BioCloud device to our safety measures as it will give athletes confidence that they are training in a safe space”. Kontrol also announced that the company intends to conduct a share buyback through the implementation of a normal course issuer bid (NCIB) with the Canadian Securities Exchange. The NCIB will allow KNR to purchase up to 2,061,236 shares during a 12-month period, ending on March 25th 2022. We believe a share buy back is a bullish move by the company as this tells the market the company believes its shares are undervalued and wants to purchase shares for cancellation making the share count smaller. A share buyback can also have a positive effect on a company’s earnings per share (EPS), due to the fact it is reducing the shares outstanding.
In a recent post on Kontrol’s Twitter account, the company alluded to more developments are set to come forth in various countries around the world. The company tweeted “From concept and prototype to deliveries in approx. 6 months. Next week @kontrolbiocloud will be deployed in Ontario, BC, Saskatchewan, Quebec, UAE and South Korea. We are doing all this while operating lean and focused on managing our capital structure”. By the sounds of it, Kontrol may be setting up for a highly active April with a lot of announcements on the way!
TAAT Lifestyle & Wellness
Shares of TAAT Lifestyle & Wellness (CSE: TAAT) (OTCQX: TOBAF) saw a slight pullback during the month of March from $4.79, down $.92 cents or 19.2%, with shares of TAAT closing the day at $3.79 on March 26th 2021.
In early March, TAAT’s national CPG sales agency Crossmark, has begun introducing the TAAT brand to its list of distributors and wholesalers as well as targeting its current established retailers located in the state of Ohio. Crossmark intends to service over 7,000 convenience stores by Q2 2021. The CEO of TAAT Setti Coscarella stated “Last week, CROSSMARK got to work with introducing TAAT™ to its impressive portfolio of accounts in Ohio, and more than three quarters of retailers have stated an interest in carrying TAAT™ in their stores”.
On March 23rd, 2021, TAAT announced that its US listed shares “TOBAF” have been upgraded from the OTCQB Venture Market to the OTCQX Best Market. This is great news for TAAT as the OTCQX is the highest tier a stock can be listed on, with the next tier being the big board such as the NASDAQ. In fact, TAAT also stated in its press release that the company has engaged advisory firms to assist TAAT in a potential future listing on the NASDAQ. It looks like the NASDAQ may be in the cards for TAAT shareholders in the future.
In addition to growing its brand, TAAT recently launched an online campaign targeting tobacco users above the age of 21 in the United States to receive free product samples of Beyond Tobacco. On March 26th, 2021, TAAT announced that the company has received over 5,000 new requests for samples of the Beyond Tobacco product from TAAT. These sample requests the company has received could generate long term consumers of TAAT as the general price point is lower than traditional tobacco products. We will be paying close attention to the company’s growth through convenience stores, its main website over the next several months and possible expansion into other markets.
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