Stonk Research

3.9 Bloom Health

If it truly hits 325 million market cap, cad, sell the heck out of it, or the ebita numbers listed below.

As of May 31 2022

As for prices, seems undervalued if they can earn 900k * 3 = 2.7 million or 1.7 million, with growth and increasing margins, they have secured some funding for 2023 with the extension contract for testing.

  • • Revenue going pretty fast % 91 in a quarter is no joke

  • • stupid america policies, need an immediate solution for this to prove vaccinations

  • • trying to help out aging workforce.

  • • strong management.

Disadvantages

  • • Covid based revenue, covid goes away sooner than expected (within a year or two)

  • • If ebitba milestones are hit, they are expected to hand over cash, but could still be a good thing.

  • • not enough money to meet obligations, expects to meet them their expansion in operations

The Company’s current liabilities exceeded its current assets by $2,971,565 as at March 31, 2022 (September 30, 2021 – $5,069,219), which includes the fair value of the short-term consideration payable of $9,956,467, based on the forecasted timing of payments. As at March 31, 2022, the Company had cash on hand of $1,680,144 (September 30, 2021 - $5,598,296). The Company did not have sufficient cash to meet its current liabilities as at March 31, 2022, and expects to meet these obligations with expansion in operations through 2022.

Payments to Round Hill

The members of Round Hill are also entitled to receive additional bonus payments (the “Contingent Consideration”) based upon the achievement of the following milestones:

  • • a one-time payment of US$10,000,000, payable in cash or common shares of the Company, at the election of the members of Round Hill, upon Round Hill achieving cumulative EBITDA of at least US$27,500,000 by December 31, 2023;

  • • a one-time payment of US$20,000,000, payable in cash or common shares of the Company, at the election of the Company, upon the Company achieving a market capitalization of Cdn$325,000,000 for thirty consecutive trading days prior to December 31, 2023; and

  • • a one-time payment of US$20,000,000, payable in cash or common shares of the Company, at the election of the members of Round Hill, upon Round Hill achieving cumulative EBITDA of at least US$52,500,000 by December 31, 2023.

Evaluation, they project 25 to 28 million dollars revenue when revenue went up 91% in Q2, 16.9M total revenue, 8.4 million in booked revenue, projections 25-28, seems likely they will hit. Almost EBITDA positive.