Let's Recap This Week's Stocks

???? What do Cannabis and Adult Toys Have in Common? [Image] Just when I thought I’d seen it all…and I’ve been around the block a time or two… I got a promoter email for BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN). Now, I remember this stock from last year when it listed on the NASDAQ. At the time, I knew it as a customer relationship management (CRM) software geared towards the cannabis industry. So, when this particular email came across… …well, let’s just get into it… BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) - 1-month trading range: $2.23- $4054 - Typical average daily volume: ~87,500 - Float: 13.4 million BYND Cannasoft Enterprises Inc.’s Business Officially, and I’ll call them Cannasoft for short, Cannasoft is all about the cannabis industry. The Israeli company’s CRM and ERP software helps industry players manage the entire supply chain, from growers to delivery, providing tailored performance and financial reporting. It comes with business intelligence tools that provide growers with real-time information. [Per their website](, the company is working to enter the market for growing and selling medical cannabis. This involves: - Transfer initial permit for the cultivation and multiplication of medical cannabis, according to a partnership agreement, after which it will begin constructing a growing facility in Israel. - The company finished planning and placement for the facility and applied for a license. - The company submitted an application to distribute and sell medical cannabis. The company does actively sell its CRM products, generating around $1 million in annual sales. However, it burns about $300,000 - $500,000 annually, although it made $300,000 in operational cash in 2020. With $2.2 million in cash, Cannasoft has enough capital to operate for several years. Ok…everything so far seems pretty straightforward. Here’s where weird happens. In September 2022, Cannasoft acquired Israeli-Based Zigi Carmel Initiatives & Investments Ltd. in a share swap deal valued at $28 million. Cannasoft basically gave Zigi $100,000 for legal fees and 7,920,000 common shares at a deemed price of $4.735 (the stock currently trades at $2.35). What did they get for their money? I’m glad you asked. The EZ-G device - an AI-powered phallus toy. The patent-pending device is marketed as providing more realistic experience. Ohh but wait…there’s more. It also uses CBD oil to treat a variety of female reproductive problems. Yes…It’s a bedside Bluetooth pleasure pogo stick that sprays CBD oil when and where you’d least expect it. To protect our younger crowd, those of you interested in more information, including a YouTube video explaining what could arguably be the 8th wonder of the world, [can click here.]( Promoter Activity All jokes aside, this company actively trades on the NASDAQ and Canadian stock exchanges. And it’s got a decent promoter push behind it. The catalysts listed at the moment include: - 494% growth in 2022 assets to $33 million - A unique license was granted by the Israeli Ministry of Health, allowing it to trade medical cannabis products through an agreement with a licensed grower in Israel - January 17 patent cooperation treaty (PCT) application for the EZ-G device - A tiny float of 1.13 million shares (per Finviz) - Strong Insider ownership - Early-mover advantage - Huge market potential for the adult toy market. Let’s address these one by one. The ‘asset’ growth they’re referring to is the patents for the EZ-G device. Getting a license to operate in Israel expands the company’s operations and is material, though a bit stale since it was announced on February 6, 2023. The same goes for the timeliness of the January 17 patent application…though it is a bit curious. If the company valued the patent asset at $37 million, why would it need to file additional applications? I suspect the patent they’re valuing is country-specific and not valid in the U.S. As to the float, Market Watch shows the public float at 13.7 million, while other sites, including FinViz, show 1.13 million. Given the low average daily volume, it may not matter. If the stock sees millions of shares suddenly trade, it could easily trigger some violent price movement. As to the strong insider ownership, it’s true and not surprising given what the company does and how its acquired the EZ-G product. …Which leads to the next two points for the early-mover advantage in the adult toy market. Both points are technically true. I don’t know that I’d call it a first-mover advantage before small market adoption has taken place. Nonetheless, the company believes in its value proposition, pushing out a campaign through two promoters. The first was paid $15,000 for a one-day campaign and had previously been compensated $30,000 for another one-day campaign. The other promoter was paid $130,000 for a four-day campaign from 3/6/2023 - 3/10/2023. While the amounts aren’t unusual, it is a decent chunk of change considering the company’s financial position. Straight to the Facts Look, I won’t tell you that the EZ-G is going to be the next great thing since the cucumber. Cannasoft clearly has a two-track product plan going. So, there are plenty of potential catalysts in the future. Plus, it’s seen decent runs before. Back in September 20022, shares skyrocketed from below $5 a share to over $16. That makes this a stock with decent volatility and a must for watchlists. Always at your service, Baron Von Stocks Disclaimer: Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. Conduct your own research. This newsletter is not a recommendation nor an offer to buy or sell securities. This newsletter is owned by Red Oak Media Group LLC. Any wording found in this e-mail or disclaimer referencing to “I” or “we” or “our” or “AS” refers to Red Oak Media Group LLC. Our business model is to be financially compensated to market and promote small public companies. By reading our newsletter and our website you agree to the terms of our disclaimer, which are subject to change at any time. We are not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature and are therefore unqualified to give investment recommendations. Companies with low prices per share are speculative and carry a high degree of risk, so only invest what you can afford to lose. By using our service, you agree not to hold our site, its editor’s, owners, or staff liable for any damages, financial or otherwise, that may occur due to any action you may take based on the information contained within our newsletters or on our website. We do not advise any reader to take any specific action. Losses can be larger than expected if the company experiences any problems with liquidity or wide spreads. Our website and newsletter are for entertainment purposes only. Never invest purely based on our alerts. Gains mentioned in our newsletter and on our website may be based on end-of-day or intraday data. This publication and its owners and affiliates may hold positions in the securities mentioned in our alerts, which we may sell at any time without notice to our subscribers, which may have a negative impact on share prices. Red Oak Media Group, 7940 Ann Arbor St Dexter MI USA 48130 To update contact information or unsubscribe from this list, please [click here](