Levitee Labs inc. LVT.CSE
Sector: Healthcare, Psychedelics, Alternative Medicine, Mental Health and Nutraceuticals
Focus: Integrative Wellness, Synergistic Acquisitions and Vertical Expansion
Company Overview:
Levitee Labs is an integrative wellness company that is transforming the digital landscape of mental health, addiction treatment, and pain management. The Company operates as an efficient capital allocator through a growing portfolio of revenue-generating wellness assets that have highly synergistic qualities for extensive psychedelic adoption and integration.
Comparable Companies:
Field Trip Health (TSX: FTRP) (Market Capitalization: ~$412.1M) – the company runs ketamine infusion clinics across Canada and the US, in addition to building clinics to administer psychedelic therapies
Numinus Wellness (TSXV: NUMI) (Market Capitalization: ~$198.9M) – the company has an acquisition model for acquiring clinics and administering psychedelic therapies
Cybin (NEO: CYBN) (Market Capitalization: ~$525.1M) – a biotechnology company that focuses on the development of psychedelic therapeutics to treat various psychiatric and neurological conditions
Levitee Labs (CSE: LVT) (Market Capitalization: $39.7M)
The Company has huge potential for re-rating and upside with
the psychedelics market being valued at over $100B as of 2021
Levitee Labs possesses an approximate Enterprise Value (EV) of $26M
The average EV in the health & wellness psychedelics space reaches north of $300M (~11.5x sales multiple)
Financials:
Levitee Labs raised $10.5 million in its last financing round, which was held in escrow until the Company’s listing on the CSE on July 21st, 2021
The Company is committed to building a portfolio of cash-flow generating assets as highlighted by Levitee’s expected acquisition pipeline of over $500M
Levitee Labs projects a 2021E revenue of $15.4M and EBITDA of $1.4M
The Company is expected to be the first EBITDA-positive psychedelics company
The Company has constructed a diversified portfolio with an expected 77% of incoming revenue being derived from acquisition targets and 23% from internally developed assets such as Monke Nutraceuticals and Sporeo Supply
Divisions:
Newly completed and certified production facility in Port Coquitlam, B.C.
Produces the first commercial-grade offering of sterilized grain and
substrates for small to large-scale mushroom cultivation
Anticipated revenue of $1.2M per month with $800,000 in positive cashflow
Based on a monthly purchase agreement with MyGreenPlanet
Mushroom-focused supplements containing clinically assessed levels of bioavailability for polysaccharides and beta-glucans
Organic mushroom fruitbodies extracted 8-10x
Utilizes a variety of certified organic, non-GMO, gluten-free, adaptogens and nootropics
The product has 41% profit margins
Levitee Clinics:
Levitee has recently acquired six mental health, pain and addictions focused clinics with over 35,000 patients
These clinics specialize in pain and addiction management
This acquisition will make Levitee the largest non-government addiction clinic services provider in Alberta
70% of patient visits conducted through the clinics’ proprietary telemedicine technology, which is the first (provincially) to prescribe narcotics over telehealth
Levitee Pharmacies:
Levitee has acquired three pharmacies specializing in management of pain and addictions
The combined revenue of the healthcare-focused acquisitions is approximately $7.5M over the last twelve months with over $1M in positive cashflow
Business Model:
Levitee has assembled a comprehensive team with a wide range of expertise in complementary fields in order to:
Develop key partnerships,
Raise capital,
Identify key acquisition targets,
Pursue clinical initiatives,
Expand profitability of newly acquired assets resulting in:
Multiple revenue streams with which to continue this “Roll Up” business model
Management & Board of Directors:
Pouya Farmand – Chief Executive Officer & Co-Founder
Mr. Farmand is an experienced financier and entrepreneur with over 10 years of transaction experience in capital markets and M&A
He has been involved in a leading advisory role for over 35 transactions ranging from $1M to $50M
Kelly Abbott – Chief Operations Officer & Co-Founder
Mr. Abbott has over 10 years of experience in entrepreneurship and software development
He has previous experience as a successful founder, investor, and CEO, having owned and operated several private and public companies
Ken Osborne, CFA – Head of M&A, Co-Founder
Mr. Osborne is a capital markets professional with diverse experience and is currently a General Partner at Darkhorse Partners having previously worked as a Corporate Development Manager within the Mergers & Acquisitions group at Telus (TSX: T) (NYSE: TU)
He has covered over 20 capital raises with an aggregate transaction volume of approximately $500M in M&A activity
Yarrow Willard – Director
Yarrow is a second-generation Clinical Herbalist, Master Herbalist, educator, and innovator in the Canadian health-food industry
He is the co-founder of the Harmonic Arts Botanical Dispensary, the director of the Wild Rose College of Natural healing, and the creator of the Herbal Jedi Youtube Channel, which has 150,000 subscribers
Share Structure
Management & Insiders: $69,000
40,318,139 shares (53.6% of outstanding shares) 9 months no trading + CSE escrow
Seed Round ($0.10): $454,000
4,540,000 shares (6.0% of outstanding shares) 6 months no trading
Series A ($0.25): $840,762
3,363,048 shares (4.5% of outstanding shares) 4 months no trading
Shell: $200,000
3,350,000 shares (4.5% of outstanding shares) free trading
Go-Public Financing ($0.50): $11,800,000
23,600,000 shares (31.4% of outstanding shares) free trading
Total Basic Shares Outstanding: 75,171,187
96% of all outstanding shares have selling restrictions
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