Before we begin, we hope everyone had a nice holiday weekend and took time to enjoy the end of summer, even with the current state of the global pandemic. We understand that it is an extremely stressful time with little visibility into the near future.
Given this, we wanted to provide an update on where we are now, as well as our proposed plans moving forward.
While COVID-19 has been extremely difficult for our economy, society and individuals, it has created very positive macro drivers for us. Two of the major opportunities are:
We believe these macro trends will only grow larger through the Fall as COVID-19 continues to broadly impact retail. We believe that we will benefit significantly from these trends as part of our IPO process, and especially afterwards.
Regarding our IPO, we are in the final stages of filing our S-1 with the SEC, which we hope to file at the end of this month. In order to file our S-1, we had to complete a two-year GAAP audit of all our acquisitions. These audits include inventory hand counts, which we could not complete until California and New Jersey allowed non-essential workers into warehouses.
We expect to finalize our final GAAP audit by the end of next week. Once completed, auditors will review the results, sign off on them, and our S-1 can be completed within two weeks. We hope to file our S-1 by late September through early October. The SEC review process can take up to 60 days to be approved, which would put our public listing around mid-December, if any delays, the date would move to the second half of January.
We’ve signed an agreement with an investment bank to lead our IPO, and are adding others. Once public, our immediate goal is to make several acquisitions based on our current pipeline and ongoing discussions. We’ve had several pre-IPO acquisition candidates ask to wait until we are public before agreeing to an acquisition. Once we are listed, we will finalize these deals.
Therefore, we believe our 2021 revenues should approximate $100 million based on the acquisitions we’re proposing to make after our public listing. We also expect to generate a meaningful and positive EBITDA. Given this, we expect our market cap in the second half of 2021 to reflect our significant revenue and EBITDA growth, which will then result in significant short and long-term shareholder returns.
We will keep everyone updated per the SEC rules and regulations, which includes quiet periods during certain stages of the IPO process.
Hil Davis, CEO
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