CANNAINVESTOR Magazine March / April 2017 - Page 135

First Quarter 2017 OTC Graduate Report

Fifteen issuers uplisted from the OTC Markets to a senior exchange in the first quarter of 2017. The majority of graduates were revenue generating companies listed on the OTCQB.

M&A played a critical role in over 50% of this quarter's graduates' growth. Acquisitions were particularly impactful for Meridian Waste Solutions, Inc. (NASDAQ: MRDN), New Age Beverages Corporation (NASDAQ: NBEV), and AUXILIO, Inc. (NYSE Mkt: AUXO).

After completing its first 'platform' acquisition in 2014, Meridian Waste Solutions, Inc. (NASDAQ: MRDN) has completed 3 major acquisitions including two acquisitions in December 2015 that more than doubled the company's 2016 revenue. In February 2017, MRDN made another acquisition of a company with over $25 million in annual revenue. These acquisitions took the company from $0 revenues in 2012 to an estimated 2017 run rate of $58 million in revenues.

With the completion of a few key acquisition in 2016, New Age Beverages Corporation (NASDAQ: NBEV) grew its revenues from less than $3 million in 2015 to over $25 million in 2016. The company's most recent and largest acquisition ($53 million 2015 revenue company) was purchased for 25% equity in the public company, $8.5 million in cash (bank financed), and a $4.5 million note payable to the seller.

One month prior to uplisting, AUXILIO, Inc. (NYSE Mkt: AUXO) acquired a company that generated approximately $15 million in revenues and $5 million of EBITDA in 2016.

See the full list of Q1 2017 OTC Graduates on next page:.

No cannabis companies!

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