- Lorenzo Carver
Greenbank Capital - Due Diligence (DD) - by /u/Rensieo89
Updated: Mar 27, 2021
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Created by /u/Rensieo89
GRNBF – Greenbank Capital Market Cap - $ 35M
I’ve never been this excited about a Company and investment as I’m about Greenbank Capital. I believe this Company is currently heavily undervalued and is therefore a great opportunity on both the short and long term. As I haven’t seen many posts about Greenbank I wanted to take the time to explain why I believe it’s that much undervalued and give you the background of the Company. It’s my first full DD so any feedback is appreciated.
About: GreenBank is a next-generation merchant banking business that has a flexible low-cost overhead structure designed to help the business grow exponentially. GreenBank invests in undervalued exponential growth companies focused on building consistent capital appreciation for its shareholders Greenbank is listed on the Canadian Securities Exchange (#GBC), the Frankfurt Boerse (#2TL.F) and on the OTC Markets (#GRNBF) in the USA.
Greenbank currently has a MkT Cap of $35M, their goal is to get listed to the NASDAQ and grow to a $2B-$10B MkT Cap (More than 50 times!! The current MkT Cap). Greenbank has a pink status on the OTC Market.
Presentation on the Company published on the website of Greenbank: https://greenbankcapitalinc.com/investors/investor-presentations/
Management: CEO - David Lonsdale David Lonsdale has his MBA Finance at the Cornell Jonhson Graduate School of Management He has more than 35 years’ operational experience spanning the corporate and entrepreneurial environments both domestically and internationally. In the corporate sector, he grew divisions for McDonnell Douglas/Boeing and Dun & Bradstreet/Nielsen, and as an entrepreneur he built and successfully sold three venture-funded technology companies including one sale to Microsoft. David’s companies focused on innovation and “disruptive” technologies including one company that developed the first integration of analog and digital data on a pen-tablet computer and another that facilitated the first Electronic Data Interchange (EDI) transaction. For ten years David was president of Allegiance Capital, a middle-market private investment bank, successfully selling his ownership in 2014. Under his leadership Allegiance Capital grew ten-fold to become one of the major banks in the industry. Overall I conclude that this is a very strong bank ground and gives a lot of confidence about the ability of Greenbank to achieve it’s goals. Also David Lonsdale is active on twitter and keeps you updated on all news of Greenbank, Inc which is assume.
Other executives and their expertise: Mark Wettreich - Compliance and management Miles Nagamatsu - Financial control Richard Beresford - Legal, transactional and public company listings. Terry Pullen - Operations, transactions, property and communications. Alex Wettreich - Strategic sales, marketing and planning Peter D. Wanner - Finance and audit
Current portfolio of Greenbank: The company's investment approach is to identify companies with the capacity for rapid growth with a strong management team that can be scaled and prepared for a public listing over a period of 6-24 months. They currently own:
- 19% in Staminier Limited with an option to acquire the other 81% (which they are currently planning on exercising as of April 14, 2021). Staminier is an UK Merchant banking Firm owing various fast growing companies as: - P&H Motorcycles Ltd (100%), the south of England's biggest distributor of high-performance motorcycles, including Ducati, Yamaha, Kawasaki, Suzuki, KTM, Scrambler and Honda. P&H is currently heavily focused on developing Electric Motorcycles and with that Greenbank is investing in the very fast growing EV market. P&H is currently already a profitable company.
- Substantia Group (100% acquired February 2021). Substantia is a United Kingdom-based property and business consultancy offering clients a wide range of outsourced services. Substantia works with or for Blue Chip companies and independents alike based both in the UK and overseas including: British Land Plc, U&I Group Plc, Netflix, Sainsburys, Morrisons, CAA-GBG, Aitch Group, Optivo, L&G and for local authorities including Bromley, Bexley, Lewisham, Greenwich, Gravesham, Croydon, Havering, Chichester and Tower Hamlets in the UK. Substantia has a contracted pipeline of development projects which it is undertaking either on its own account (taking options over land and pursuing planning/zoning gain) or on behalf of clients (as adviser or project manager) for a total gross development value exceeding $1B and $21M expected profit over the next five years.
- Pharmakure (Acquired 10% initial shareholding November 2020, with option to get a bigger stake (up to 20%) once Greenbank helped Pharmakure to go public). Pharmakure the pioneer of a very important and potentially revolutionary treatment for Alzheimer’s. Pharmakure targets ‘remediation’ of the disease using two re-purposed approved drugs. Because the drugs are already approved by regulators, Pharmakure can move immediately to Phase II Clinical Trials, thus avoiding pre-clinical and Phase I trials which can take years and cost many millions of dollars. The pipeline of drugs currently being developed or repurposed by Pharmakure will further add momentum to the Company’s plans to become a significant player in next generation drug development and treatment for neurological diseases. In addition to the shareholding that Greenbank acquired in Pharmakure, Pharmakure also appointed Greenbank as their merchant banking advisor.
- 13 acre Gatwick Airport land. The Company has entered into a three-year option to acquire 13 acres of land immediately adjacent to one of London Gatwick’s existing carparks at the South Terminal for 6M GBP. This is in addition to the currently 15 acre land on Gatwick Airport that they already own. The Company intends to apply for planning permission to build a car park with a capacity for at least 2200 cars, in order to help service the increased demand for car parking at London Gatwick (“Gatwick” or “Gatwick Airport”). The expectation is that they get this permission on the short term. A similar piece of land with the same permissions as that Staminier is applying for, was recently sold for 3M GPB per acre to Microsoft!. So after permission, the land alone that Greenbank owns is worth more than the current Mkt Cap of Greenbank!.
- And last but maybe most exciting Staminier announced a collaboration with AuBit (November 2020). Aubit is a new and pioneering asset management platform being created by AuBiT International to help to service the needs of institutional, professional and retail investors in the multi-trillion dollar global asset management industry. They create extra value for investors using their platform through the use of blockchain technology. This way they can cut out the middle man and give back these cost savings to the investors that use their platform. Aubit calls this Network effects and describe it as that they are built to leverage the exponential power of network effects in finance by automatically redistributing 80% of all transaction fees and network revenues back to users. For Example if you were to hold an AuBit-networked share or crypto currency, you get more of these shares or crypto currency every time anyone, anywhere in the world trades that AuBit-networked share or crypto currency. This is a very innovative and I believe the next revolution in investing as you get extra value without extra risk. Aubit is expected to release in April 2021 and will soon be live in over 180 countries!. AuBit runs on freeway tokens, basically a cryptocurrency (trigger: FWT). They have a strictly limited supply of 10B tokens. As part of the deal with Staminier, Staminier purchased 400M of these tokens for $1M in November 2020. Based on the current price of freeway tokens this investment is already worth $8M. The collaboration between Greenbank Capital and AuBit will have massive benefits for both and could increase value of both companies rapidly.
The assets above are all owned through Staminier. In addition to that Greenbank has the following assets: - 1M shares in St-Georges (SXOOF), with option to buy 500K shares more. This company is focused on exploration for Canadian energy metals and for gold in Iceland while developing extraction technologies that are reducing the environmental impact of mining activities. Further more, and I think more exciting, the company owns proprietary technology potentially capable of helping to solve the next big environmental catastrophe to face the world - the little appreciated dangers associated with the future disposal of so many electric car batteries, as the car industry aims to reduce carbon emissions whilst failing to address the huge environmental impact of so many used batteries. They just announced in February that its initial tests conducted on an array of lithium-ion batteries have been successful in confirming that the selective leach, conducted with its proprietary blend of acids, allows for the recovery of the lithium, nickel and cobalt that are found as a coating on aluminium foil in the core of the batteries. In my opinion another huge growth Company.
- Kabaddi Games Inc (59.5% acquired October 2020). This is a Canadian company that owns all rights, title and interest to a mobile application game based on the Kabaddi sport. The sport of Kabaddi is the second most popular sport in India, after cricket, attracting 430 million television viewers during the 2014 inaugural televised season of the Pro Kabaddi League.
- Beelivery (significant shareholding, March 2021). Beelivery is a UK-based, fast-growing and profitable online grocery delivery platform. Unlike virtually all its competitors in the on-line grocery delivery sector, Beelivery's highly advanced and proprietary online ordering and logistics algorithms, combined with its low-cost model, have enabled Beelivery to achieve profitability already, whilst the big names in the industry, including the likes of Ocado, continue to struggle to make their businesses profitable. Beelivery, which specialises in quick delivery, provides two delivery options - "now" which offers delivery within 60 minutes (achieving an average of 46 minutes across the whole of the UK) and "today" which offers delivery slots with the following 24-hour period. Orders can be placed by customers, and deliveries are carried out by a team of independent drivers, 24/7, 365 days a year. As a profitable business in this very fast-growing industry, which has recently been attracting a good deal of investment activity, GreenBank believes that Beelivery, with its low-cost and profitable model, should be rated even more highly than its loss-making peers, which are themselves highly rated. Beelivery, which sources its line of products from any grocery outlet local to the customer, currently has over 20,000 delivery drivers serving UK customers. Unlike most of its competitors Beelivery has more than 90% nationwide coverage and average delivery times of only 46 minutes.
- In addition to the investments above Greenbank owns 52.5% of Blockchain Evolution Inc, owners of the world's first identification based blockchain, 21.4% of Ubique Minerals Limited, a zinc exploration company in Newfoundland, Canada; 47.5% of GBC Grand Exploration Inc, a gold exploration company in Newfoundland, Canada; 19% of Inside Bay Street Corporation, a financial news communications company; 34.8% of Gander Exploration Inc, a minerals exploration company; 10% of Reliable Stock Transfer Inc, a Canadian small cap transfer agency; 25.2% of Buchans Wileys Exploration Inc, a minerals exploration company; 10% of The Lonsdale Group LLC, a USA based private equity company focused on small cap investments; and 8.3% of Minfocus Exploration Corp (TSXV: MFX), a mineral exploration company.
Share structure: Another great point about this Company is that they don’t have an extreme amount of outstanding shares. They have about 50M outstanding shares of which approximately 50% is owned by either executives or insiders.
Conclusion: Based on all the assets that Greenbank currently owns I believe they are heavily undervalued which should lead to an increase in the current share price on the short term. We already see that happening over the past week in which the share price increased with about 80% (exactly dropped 16% Today). On the long term I believe that the investments that they make are indeed exponential growth companies that really can take off in the coming years. Overall a very good investment in my opinion. But please let me know your thoughts and if I'm missing something here. Currently holding 10K shares at an average price of $0.59