SmallCapFirm

New 10/30 Idea: AgraFlora Organics Intl. Inc. (AGFAF)

This Hidden Gem Just Took A Giant Leap (German Acquisition News) Towards Mainstream Notoriety

*Last 4 Champs Gained Approx. 1,247% Intraday From Their Low To Their High*

October 29th

SCF Members,

Right again! Yesterday's profile (CYLC) grew over 14% intraday from an early low of $.35 to $.40 to become your 4th straight champ.

Today, CYLC picked up where it left off and climbed to $.455 for an overall run of 30% from yesterday's $.35 low.

Leading up, your 10/23 profile surged 33% intraday from a low of $.36 to a $.48 high.

On 10/21, (ITRK) flew 600% intraday surge from an open of $.01 to a high of $.07.

To start things off, on 10/18 (SNWR) blazed from $.01 to a day high of $.07, for a 600% intraday run.

That makes 4 in-a-row and I'm looking to put the pedal to the metal.

Looking for your next breakout idea, I've uncovered an up-and-comer in the "Green Wave" industry.

This company looks primed to graduate to the world's stage and could be ready to do this much sooner than those in-the-known realize.

Now, before this company takes off and starts gaining too much attention, I want to bring your focus to tomorrow's breakout idea:

AgraFlora Organics International Inc. (AGFAF)

AgraFlora also trades in Canada (CSE: AGRA) and in Germany (Frankfurt: PU31).

This company is starting to gain some notoriety around the old water cooler, but before the word gets out the masses, you need to be aware of the massive potential upside in this new trade idea.

Dropping this past Friday, AGFAF released some important news regarding a game-changing acquisition.

As this news starts making the rounds, it could turn into a major catalyst to drive share prices through the roof for AGFAF.

Here are some of the most important highlights from the article:

AgraFlora Organics Acquires German EU-GDP Medical Cannabis ("CB") Distributor, Farmako GmbH, Vertically Integrating Into the EU Marketplace

VANCOUVER, British Columbia, Oct. 25, 2019 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc., a growth oriented and diversified international CB company, is pleased to announce the Company has acquired 100 per-cent (100%) of the issued and outstanding shares of The Good Company GmbH (“The Good Company”). The Good Company is the parent company of German EU-GDP medical CB distributor, Farmako GmbH (“Farmako”).

Farmako is a leading European medical CB distributor, headquartered in Frankfurt, Germany, with affiliated companies in the United Kingdom (“UK”), Luxembourg and Denmark.

GERMANY

Farmako is equipped with the following German and European industry certifications and distribution licenses, affording the Company unparalleled access to Germany’s geometrical growing medical CB marketplace:

• Medical wholesale distribution license under German Medicines Act (“AMG”);
• Permit for Narcotic Drug Handling as per German Betäubungsmittelgesetz (“BtMG”); and,
• Certificate of EU-Good Distribution Practice (“EU-GDP”).

Farmako has realized revenues of over C$2.3Mn throughout the 2019 fiscal year and has succeeded in capturing an eight per-cent (8%) market share of Germany’s burgeoning medical CB arena, boasting the highest capital efficiency and positive EBIT margins within the industry. Farmako’s German distribution network extends over 19,800 pharmacies and comprises an aggregate patient population of over 100,000 unique individuals.

UNITED KINGDOM

Additionally, Farmako has been granted an authorization for the wholesale distribution of medicinal products, including medical CB, by the UK’s Medicines and Healthcare products Regulatory Agency (the “MRHA”). Recent UK legislation allows for the prescription of CB from a medical specialist via a regular pharmacy model. Access to this high profile market, when coupled with broad National Health Service ins. coverage for medical CB to ensure patient outcomes, is a key strategic element of AgraFlora’s global platform.

Prohibition Partners estimates that there are as many as 3.6 million active CB users in the UK. AgraFlora and Farmako are committed to the expansion of a sophisticated, pan-European CB production and distribution network, which serves the needs of physicians and their patients.

AGRAFLORA AND FARMAKO

Sebastian Diemer, Co-Founder and Chief Executive Officer of The Good Company GmbH stated: “On behalf of the Farmako team, I express our sincerest elation to join the AgraFlora group of companies. In the eight short months since inception, we at Farmako have managed to capture material amounts of market share from peer group competitors such as Aurora, Canopy and CC Pharma (Aphria); successfully distributing 150,000 grams of medical CB into arguably the world’s highest value patient population.

Reliable supply of premium CB flower from AgraFlora’s 2.2 million square foot Delta Facility, coupled with a fully integrated European supply chain, Farmako is positioned to emerge as a true contender to Aurora, Canopy and CC Pharma within the German operating theatre. AgraFlora’s Canadian cultivation facilities yield the finest CB products which will exceed the expectations of educated, sophisticated and quality-driven European consumers; providing us with the consistent supply of EU-GMP certified medical CB required to continue to seize mark share from our peers.”

-----

Is your head spinning or what?

The first time I read through this press release, I couldn't believe my eyes with the amount of game-changing AGFAF info I had just read.

Farmako, subsidiary of AGFAF's most recent acquisition, thinks that they will be able to start contending with the sector big boys (Aurora, Canopy, etc.).

These are known entities with major market caps. Plus, when it comes to CB related news, Aurora and Canopy are usually two of the biggest name drops.

In comparison to them, here's a clip of a spreadsheet to show just how undervalued AGFAF is at the moment and its potential licensed producer ("LP") growth in 2020:

The middle column displays AgraFlora's internal forecasts that indicate upon receipt of its standard cultivation licence from Health Canada, the company will become the fourth-largest LP in Canada by 2020 financed production metrics.

Yes. You might want to read that again.

Just look at AGFAF's approximate market cap right now compared to the other top dogs... This is a true hidden gem with fantastic upside potential.

If AGFAF becomes the 4th biggest LP in 2020, you better believe that traders/investors are going to take serious notice of the company's undervalued potential.

Major AGFAF Catalysts To Focus On

#1. AgraFlora has a large diversified plan to be a leader in global CB production. Coupled with best in class growing expertise from the Houwelings Group.

#2. The restrictions on branding in Canada will reward the operators with top growing expertise and the best ability to produce product at scale.

#3. Based on company estimates, by the end of 2020, AgraFlora will be a leader (potentially top 4) for all LPs in terms of greenhouse square footage.

#4. The company has a much smaller market capitalization than companies with similar growing capacity in Canada.

#5. AgraFlora plans to commence Phase 2 of the Delta Facility retrofit in December of 2019, which will include:

• 10 flower rooms with over one million square feet of canopy;
• 40,000 square feet of EU-GMP postharvest/processing space;
• Equipped with ozone-rich drying rooms;
• Installation of an industrial kitchen; and,
• Workflow design to include commercial and ethanol extraction capabilities.

Just How Big Is This Delta Facility?

Do you know how big 2.2Mn square feet is?

Don't fret, I had to look it up myself to figure out just how big AGFAF's Delta Greenhouse Complex currently stands.

Here are some comparisons:

• It's roughly 2.5X the size of Buckingham Palace (830K sq. ft)
• It's over 150X the size of Fort Knox (12.7K sq. ft)
• It's approx. 1.5X the size of the Pentagon (1.49Mn sq. ft)

Hopefully, this helps your wrap your head around how big this production facility stands.

The Company’s Delta Greenhouse Complex is equipped with 2.2Mn square feet of dedicated cultivation area under glass and is widely considered to be one of the most technically advanced and environmentally efficient greenhouse operations in the world.

Overall, AgraFlora owns two state of the art CB production facilities in Canada. This includes a 70% stake in the large scale 2.2Mn square foot greenhouse complex in Delta BC, as well as an ACMPR licensed 8,800 square foot indoor cultivation operation in London, ON.

AgraFlora also operates a flagship 51,500 square foot edibles manufacturing facility located in Winnipeg, MB.

As you can see, this company is not messing around.

For the size of its market cap, it's easy to see that a hidden gem like this one doesn't come around too often.

I'll be back in touch again before tomorrow's opening bell. For now, do your best to get AGFAF completely researched and be ready.

To Your Trading Success,

Axel Adams

Editor, SCF

Sources: agraflora.com/

thedeepdive.ca/company-overview-agraflora-organics/

(Always Remember The Stock Prices Could Be Significantly Lower Now From The Dates I Provided.)​