Edison Investment Research Limited SynBiotic (SBX): Initiation - Working together 30-Jul-2021 / 07:00 GMT/BST =---------------------------------------------------------------------------------------------------------------------- London, UK, 30 July 2021 SynBiotic (SBX): Initiation - Working together Management plans to utilise its experience in scaling profitable companies to accelerate SynBiotic's strategy and become a leading platform company in the cannabinoids industry. It acquired SolidMind in June 20, followed by subsequent smaller deals, and we expect further deals as the platform grows. Increasing consumer acceptance of cannabinoids across a range of applications (from healthcare to wellbeing) ensures a huge target market. New product sources (both cannabinoids and plants) may enhance efficacy and lawful commercialisation. SynBiotic raised EUR6.3m of equity in December. Notwithstanding evident execution/ regulatory risk, SynBiotic seems cautiously rated at c 4x management's projected FY21 revenue. Due to the scale and nature of SynBiotic's continuing evolution with reliance on early-stage unlisted investments, financial forecasts cannot be made with any certainty. This is compounded by strict and volatile regulatory risk (substantial 'grey areas'). However, the market opportunity for SynBiotic appears clear. The shares are trading on c 4x management's estimated FY21 sales of EUR15m, which gives the company little benefit of doubt, even ignoring more established CBD peers rated at over 20x revenue. Click here to view the full report or here to sign up to receive research as it is published. All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Sara Welford +44 (0)20 3077 500 consumer@edisongroup.com Russell Pointon +44 (0)20 3077 500 consumer@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv =---------------------------------------------------------------------------------------------------------------------- Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. =----------------------------------------------------------------------------------------------------------------------
1222807 30-Jul-2021
Image link:
https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1222807&application_name=news(END) Dow Jones Newswires
July 30, 2021 02:00 ET (06:00 GMT)
