Wednesday, May 11, 2022

Element79 Gold Corp. (ELMGF)
Getting In On the Ground Floor

Element79 Gold is a mineral exploration company focused on the acquisition, exploration and development of mining properties for gold and associated metals. Element79 Gold has acquired its flagship Maverick Springs Project located in the famous gold mining district of northeastern Nevada, USA, between the Elko and White Pine Counties, where it has recently completed a 43-101-compliant, pit-constrained mineral resource estimate reflecting an Inferred resource of 3.71 million ounces of gold equivalent* “AuEq” at a grade of 0.92 g/t AuEq (0.34 g/t Au and 43.4 g/t Ag)) with an effective date of Feb. 4, 2022. The acquisition of the Maverick Springs Project also included a portfolio of 15 properties along the Battle Mountain trend in Nevada, which the Company is analyzing for further merit of exploration, along with the potential for sale or spin-out. In British Columbia, Element79 Gold has executed a Letter of Intent to acquire a private company which holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James. In Peru, Element79 Gold has signed a letter of intent to acquire the business and assets of Calipuy Resources Inc., which holds 100% interest in the past-producing Lucero Mine, one of the highest-grade underground mines to be commercially mined in Peru’s history, as well as the past-producing Machacala Mine. The Company also has an option to acquire 100% interest in the Dale Property which consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, Canada in the Timmins Mining Division, Dale Township.

Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating coverage with an Outperform rating. From the time of its initial public offering in August 2021, Element79 Gold has rapidly assembled a diversified portfolio of precious metals properties in the United States, Canada, and Peru. The company’s 20-property portfolio, including those for which it has an option or letter of intent to acquire, includes sixteen 100%-owned projects in Nevada, two in Canada, and two in Peru. Its flagship Maverick Springs project in Nevada, which was acquired in December 2021, hosts an inferred resource of 3.71 million ounces of gold equivalent with significant expansion potential. The company also owns 15 properties along the Battle Mountain Trend in Nevada and is considering each for additional exploration, joint venture, sale, or spin-out.

Accelerated path to cash flow generation. Element79 Gold recently executed a letter of intent to acquire two past producing gold mines in Peru, the Lucero and Machacala mines, with the intent to return Machacala to production within the next 18 to 24 months at a maximum rate of 350 tonnes per day. A definitive agreement is expected to be executed by the end of June with the transaction closing shortly thereafter. While the company’s Nevada projects provide scale and underpin the company’s valuation with an existing resource, the projects in Peru offer the potential for higher grade ore and the prospect of near-term production and cash flow….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Bowlero Corp. Announces Outstanding Results for the Third Quarter of Fiscal Year 2022

Research, News, and Market Data on Bowlero

• Revenue totaled
  nearly $258 million, growing $145.6 million or 129.8% year over year,
  $52.8 million or 25.8% relative to pre-pandemic performance, and $24.1
  million or 12.2% on a same-store basis vs. pre-pandemic. ¹ Revenue trends
  accelerated through the week ended April 24, 2022 (see chart below).

• Net Loss for the
  quarter of $18.0 million was driven primarily by $66.6 million of non-cash
  expenses related to the increase in the value of earnouts and warrants, as
  well as $3.4 million of transactional expenses related to the business
  combination. Net Income for the quarter, adjusted for these items was
  $52.0 million vs. a net loss of $23.1 million in the prior year. ²

• Adjusted EBITDA
  of $108.4 million increased $81.0 million or 295.7% vs. prior year’s
  quarter, and grew $41.0 million or 60.9% relative to pre-pandemic
  performance. ²

• Trailing twelve
  month (“TTM”) Net Loss of $50.3 million was driven primarily by
  expenses related to the successful de-SPAC transaction, which include
  $42.2 million in share based compensation and $32.5 million in transactional
  expenses, as well as $44.1 million of non-cash expenses related to the
  increase in the value of earnouts and warrants. TTM Net Income, adjusted
  for these items was $68.5 million. ²

• TTM
  Adjusted EBITDA of $276.3 million exceeded pre-pandemic performance by
  58.9%. ²

• Repurchased 109,754 shares of
  Class A common stock and 2,690,272 warrants.

• Announced the redemption of all
  outstanding publicly traded and privately held warrants, which is planned
  to be completed on May 16, 2022.

RICHMOND, Va., May 11, 2022 (GLOBE NEWSWIRE) — Bowlero Corp. (NYSE: BOWL) (“Bowlero” or the “Company”), the world’s largest owner and operator of bowling centers, today provided financial results for the 2022 fiscal year third quarter, which ended on March 27, 2022. Bowlero announced that it grew revenue in the quarter to nearly $258 million, driven by strong growth in both walk in retail and event revenue. Total revenue grew by 25.8% compared to pre-pandemic performance and by 129.8% on a year-over-year basis. Same-store sales rose by 12.2% relative to pre-pandemic.¹  

“We are extremely pleased with our performance in the quarter. As our record quarterly generation of Revenue and Adjusted EBITDA demonstrate, Bowlero has never been stronger than it is today. We are more committed than ever to executing our growth strategy, and we are thrilled to continue to welcome our guests to a delightful experience,” said Tom Shannon, Founder and Chief Executive Officer.

Financial
Summary

• Significant growth in Revenue during the quarter, totaling nearly $258 million, up 25.8% relative to pre-pandemic performance and 129.8% on a year-over-year basis; 12.2% on a same-store basis vs. pre-pandemic performance.¹
• Net Loss for the quarter of $18.0 million was driven primarily by $66.6 million of non-cash expenses related to the increase in the value of earnouts and warrants, as well as $3.4 million in transactional expenses related to the business combination. Net Income, adjusted for these items was $52.0 million vs. a net loss of $23.1 million in the prior year.²
• Adjusted EBITDA for the quarter grew to $108.4 million, up 60.9% relative to pre-pandemic performance and 295.7% vs. prior year.²
• TTM Adjusted EBITDA of $276.3 million exceeded pre-pandemic performance by 58.9%.
  ²
• TTM Net Loss of $50.3 million was driven primarily by expenses related to the successful de-SPAC transaction, which include $42.2 million in share based compensation and $32.5 million in transactional expenses, as well as $44.1 million of non-cash expenses related to the increase in the value of earnouts and warrants. TTM Net Income, adjusted for these items was $68.5 million.
  ²
• Cash generated from Operations during the quarter was $83.6 million.

“We saw an acceleration of growth as the quarter progressed, driven by the waning impact of Omicron and COVID restrictions being eased,” said Brett Parker, President and CFO of Bowlero Corp. “In addition to continued strong growth in walk in retail revenue, we also saw growth in total event revenue for the first quarter since the onset of COVID. While growing revenue, we also expanded Adjusted EBITDA margin from the pre-COVID levels by 918 basis points. As a result, we posted our highest Revenue and Adjusted EBITDA generated in any quarter, as well as any nine month or TTM period in our history.”

Total
Bowling Center Revenue Performance Trend 3

Chart for Bowlero Corporation Revenue Performance Summary vs. Pre-COVID Performance:
https://www.globenewswire.com/NewsRoom/AttachmentNg/3c14a746-9fd9-430a-ae09-5fc850a77e9b

* The revenue performance for the week ended 10/31/21 was negatively impacted by Halloween falling on the weekend.
* The revenue performance for the week ended 12/26/21 was negatively impacted by Christmas Day falling on the weekend.
* The revenue performance for the week ended 2/13/22 was negatively impacted by the shift in Super Bowl Sunday.      

____________
¹ Same-store sales are measured by comparing revenues for centers open for the entire duration of both the current and comparable measurement periods. The pre-pandemic comparable period for current quarter is the quarter ended March 31, 2019.
² “GAAP” stands for Generally Accepted Accounting Principles in the U.S. Please see the sections of this document titled “GAAP Financial Information” and “GAAP to non-GAAP Reconciliations” for more information on the Company’s GAAP and non-GAAP measures. Certain figures in the tables throughout this document may not foot due to rounding.
³ Total Bowling Center Revenue excludes closed bowling center activity and media revenue, which is also a component of our bowling operations. For weeks between 9/5/21 and 12/26/21 and between 3/6/22 and 4/17/22, the percentages above are calculated by comparing each week to the comparable week in 2019. For weeks between 1/2/22 and 2/27/22, the percentages above are calculated by comparing each week to the comparable week in 2020. Data for all weeks following the close of the quarter ended on 3/27/22 are preliminary.

Investor
Webcast Information
Listeners may access an investor webcast hosted by Bowlero. The webcast and results presentation will be accessible at 5:30 PM ET on May 11, 2022 in the Events & Presentations section of the Bowlero Investor Relations website at 
https://ir.bowlerocorp.com/overview/default.aspx.

About
Bowlero Corp.
Bowlero Corp. is the worldwide leader in bowling entertainment. With more than 300 bowling centers across North America, Bowlero Corp. serves more than 26 million guests each year through a family of brands that includes Bowlero, Bowlmor Lanes, and AMF. Bowlero Corp. is also home to the Professional Bowlers Association, which it acquired in 2019 and which boasts thousands of members and millions of fans across the globe. For more information on Bowlero Corp., please visit BowleroCorp.com.

Forward
Looking Statements

Some of the statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are generally identified by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and, in each case, their negative or other various or comparable terminology and include preliminary results. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on our management’s current expectations, estimates, forecasts, projections, assumptions, beliefs and information. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. All such forward-looking statements are subject to risks and uncertainties, many of which are outside of our control, and could cause future events or results to be materially different from those stated or implied in this document. It is not possible to predict or identify all such risks. These risks include, but are not limited to: the impact of COVID-19 or other adverse public health developments on our business; our ability to grow and manage growth profitably, maintain relationships with customers, compete within our industry and retain our key employees; changes in consumer preferences and buying patterns; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; the risk that the market for our entertainment offerings may not develop on the timeframe or in the manner that we currently anticipate; general economic conditions and uncertainties affecting markets in which we operate and economic volatility that could adversely impact our business, including the COVID-19 pandemic and other factors described under the section titled “Risk Factors” in the registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “SEC”) by the Company, as well as other filings that the Company will make, or has made, with the SEC, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in other filings. We expressly disclaim any obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Read the full release for financials

The Big Tomato, Hydroponic Division of Schwazze, Receives Westword Best of Denver Award for the Best Home Cultivation Store

Research, News, and Market Data on Schwazze

DENVER, May 9, 2022 /PRNewswire/ – 
Schwazze, (OTCQX: SHWZ) (NEO: SHWZ), a premier vertically integrated, multi-state operating cannabis company with assets in Colorado and New Mexico is proud to announce that its hydroponic and indoor gardening brand, The Big Tomato has been named the Best Home Cultivation Store in the city of Denver by Westword magazine.

Westword magazine states, “The Big Tomato was helping home growers long before the dispensary boom, selling indoor gardening supplies for over two decades. Now owned by Schwazze, a Denver-based cannabis corporation, the Big Tomato still offers the same friendly service for newbies and regulars, but now has even more of a cannabis focus — and an online shopping option, to boot. For beginning green thumbs, finding a trustworthy growing store is like searching for a new mechanic; more cynical shops can take advantage of that lack of experience by suggesting unnecessary lighting equipment and nutrients. That’s not the case at the Big Tomato, so don’t be afraid to ask questions.”

“We are honored to receive the Westword award for Best Home Cultivation Store in Denver,” said Jeremy Bullock, Vice President – Commercial Sales. “We are proud to serve our community and provide expert advice to an industry that has historically lacked access to information and education about the best practices for cultivating cannabis.”

The Big Tomato (Big Tomato) has served the indoor, hydroponic and community of Colorado for over 20 years. Big Tomato predates the hydroponics boom, and offers competitive prices and an extensive selection of expertly curated supplies. The experienced growers at Big Tomato offer superior product knowledge to hobbyists and commercial growers alike. From propagation to harvest, Big Tomato has developed a reputation as the go-to source for all garden supply needs.

695 Billing St.,
Aurora, Colorado
303-364-4769

thebigtomato.com

About Schwazze

Schwazze (OTCQX:SHWZ, NEO:SHWZ) is building a premier vertically integrated regional cannabis company with assets in Colorado and New Mexico and will continue to take its operating system to other states where it can develop a differentiated regional leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high-performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company’s leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices.

Medicine Man Technologies, Inc. was Schwazze’s former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc. Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.

Forward-Looking Statements

This press release contains “forward-looking statements.” Such statements may be preceded by the words “plan,” “will,” “may,”, “predicts,” or similar words. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, (ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws, and * out ability to satisfy the closing conditions for the private finding described in this press release. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC’s website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.

 View original content:https://www.prnewswire.com/news-releases/the-big-tomato-hydroponic-division-of-schwazze-receives-westword-best-of-denver-award-for-the-best-home-cultivation-store-301541846.html

SOURCE Schwazze

Tuesday, May 10, 2022

RCI Hospitality Holdings (RICK)
Momentum Continues to Build

With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen’s clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick’s Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie’s Cabaret, and Scarlett’s Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2Q22 Results. Revenue hit a record $63.7 million, up 3.0% sequentially and up 44.6% y-o-y. Omicron cut quarterly revenue by an estimated $2 million. We had projected $65.3 million of revenue. Net income was $11.0 million, or $1.15 per share, compared to $6.1 million, or $0.68 per share last year. We were at $11.6 million, or $1.22 per share.

Club Acquisitions and Growth. RCI just acquired another South Florida club for $16 million, or 4.1x club EBITDA and is under contract to purchase a club in Ft. Worth, TX. In addition, the rebranded Louisiana club was opened in March and the reformatted San Antonio club will open in the third quarter.  …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Tuesday, May 10, 2022

Kandi Technologies Group, Inc. (KNDI)
First quarter results reflect shift in business line

Kandi Technologies Group, Inc. (KNDI), headquartered in Jinhua Economic Development Zone, Zhejiang Province, is engaged in the research, development, manufacturing, and sales of various vehicular products. Kandi conducts its primary business operations through its wholly-owned subsidiary, Zhejiang Kandi Technologies Group Co., Ltd. (“Zhejiang Kandi Technologies”), formerly, Zhejiang Kandi Vehicles Co., Ltd.) and its subsidiaries including Zhejiang Kandi Smart Battery Swap Technology Co., Ltd, and SC Autosports, LLC (d/b/a Kandi America), the wholly-owned subsidiary of Kandi in the United States, and its wholly-owned subsidiary, Kandi America Investment, LLC. Zhejiang Kandi Technologies has established itself as one of China’s leading manufacturers of pure electric vehicle parts and off-road vehicles.

Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Off-road vehicle sales rose 90% year over year. Off-road electric vehicles sales, primarily golf carts, were $10.7 million surpassing our expectations for sales of $8 million. The segment has been hot every since the beginning of COVID and continues to grow in importance to the company. The company formed a new company to produce electric golf carts. The company recently signed a memorandum of understanding to sell $29 million (5,000 units), virtually doubling the division’s sales. We expect strong growth from the division.

Battery sales have been strong and now represent the second largest operating division. Battery sales were $8.0 million up from a negligible amount last year. The company acquired Jiangxi Huiyi New Energy Co. in October 2021. The division has synergistic benefits with Kandi’s other operating divisions and appears to be a profitable business on its own….

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.