Canadian CANNAINVESTOR Magazine October 2017 - Page 252

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Quiety, on August 21st, shares of TRST commenced trading on the CSE. Social media and the like did not contain the usual buzz typically associated with new listings from the headline spammers and promoters that seem to dominate the boards at times.

It was precisely that lack of over the top promotional attention that made me realize TRST was ideal as a case study because clearly the company knew

that they did not the

fanfare. Typically, the

downside of a new

listing is a lack of

available financial

information. However, just 8 days after TRST was listed that they

released their financial statements for the quarter ended June 30th and the March 31st statements are also available on their website. Not only was there a 50% increase in revenues from Q1 to Q2 but almost a dollar for dollar translation of that revenue to net income.

Highlights

Expansion plans from current 50kf2 to 430kft2 on a 46-acre property.

$14.9M cash on hand as of June 30th.

Positive Net Income

Positive Cash Flow from Operations

Positive adjusted EBITA

Increased average selling price to $8.86/gr

Q2 revenues of $4.5M (469% increase over Q2 2016)

Active patients increased to 20,000 (Q2) from under 4,000 over Q2 2016. >400%

Patents granted in USA and Canada for their “Brew Budz pots” with patents pending in Australia, the EU, and in China.

Subsequent to Q2: Number of active patients has increased to 25,000 or more & monthly revenues are just shy of $2M

If their revenues continue to increase at their current pace, the current approximate Revenue Per Share of $0.023 may be

understated as well as the approximate EPS of just south of a penny.

What is refreshing about TRST is on their website available for download are their “Code of Business Conduct and Ethics” as well as their “Insider Trading Policy”.

With a success record that speaks for itself, one can see why there has been a lack of promotional posts on boards and in social media.

Humble, successful, growing patient count and revenues, patents, international presence (patents pending), positive cash flows, market cap of approximately 11x estimated annualized revenues at time of writing – what other reasons does the prudent retail investor not familiar with TRST to undertake further due diligence for considering TRST?