Schwazze: PE Consolidation Platform Worth $2.74/sh Pro Forma for Star Buds, $3.30+ with RootsRx
- Core Colorado consolidation opportunity remains, US Cannabis macro theme improved
- Pro forma SHWZ+Star Buds only will be a highly levered private-equity style consolidation platform once deals close, likely in next couple months
- Comping to Columbia Care yields flat to +170% best upside, more from additional acquisitions and general cannabis market growth and legalization catalysts
- Financing, Execution, Leverage, and public illiquidity are primary risks
- Closing RootsRx as well increases value to $2.46-$3.64/share
Download a PDF version (the tables look much better) at the link below:
This article, originally available only to members, became publicly available on March 30, 2021. As of March 30, 2021, the author was long shares in SHWZ.