The BC Bud Co. Is An Execution Story To Be Aware Of

Earlier this year, we highlighted The BC Bud Co. (CSE: BCBC) (OTC: BCBCF) as a Canadian cannabis company that was flying under the radar.

Since publishing our article, the stock has been trending higher and has rallied more than 50%. We are of the opinion that The BC Bud Co. is in the early innings of a major growth cycle and still believe the stock is flying under the radar.

So far this year, the stock has rallied more than 150% and we still believe that it has considerable upside potential. The BC Bud Co. is led by a management team that has a proven track record of success and consider this to be the most important aspect of the story.

The Management Team Has Significant Skin In The Game

When we analyze a company, the management team is the first factor that we look into. In regard to The BC Bud Co., the management team owns more than 70% of the shares outstanding and we find this to be a very bullish indicator.

When compared to other North American cannabis companies, the management team owns a much larger percentage of the business and we find this to be significant. If the management team did not believe in the long-term opportunity, we would expect to see a significant amount of insider selling after the recent rally.

Insider ownership plays a major role in our view of the company and we believe the market is not assigning enough value to this trait of the business. The amount of stock owned by the BC Bud Co’s management team increases our conviction level for the business and we want our readers to be aware of this aspect of the story.

An Efficient Growth Story

The BC Bud Co. is executing on an efficient growth strategy and has been capturing market share in provinces across Canada. Currently, the company is selling products in 6 provinces and we expect this number to increase by the end of the year.

By utilizing a contract manufacturing strategy, The BC Bud Co. has been able to keep costs low and we are bullish on this approach. By operating this way, the company has not needed to build or buy facilities for millions of dollars. Due to this strategy, The BC Bud Co. has no debt on the books and we consider this to be one of the most important aspects of the story.

Most of The BC Bud Co’s competitors have a significant amount of debt outstanding, a condition that is crippling to the growth of such a business. The interest rate on the debt that its peers have is extremely high and we expect this to put pressure on the businesses over the long-term.

We believe The BC Bud Co.  is well positioned to benefit from the growth of Canada’s recreational cannabis industry. The management team is executing on a multi-faceted growth strategy that is centered around capturing market share and we are of the opinion that the market has not taken this into account when valuing the business.

While large-scale Canadian cannabis retailers like High Tide or Fire & Flower are facing significant headwinds from expanding too fast, The BC Bud Co’s management team has been executing on a calculated growth strategy. We believe the patient approach to growth could create acquisition opportunities for The BC Bud Co. and expect the brand to take market share from retailers like High Tide and Fire & Flower.

A Stock To Have On Your Radar

During the last few years, the amount of unsold cannabis being destroyed by Canadian Licensed Producers (LPs) has significantly increased. Some analysts have attributed the trend to a lack of quality product on the market and we believe The BC Bud Co’s focus on selling premium products has protected the business from the cannabis destruction trend in Canada.

We believe The BC Bud Co. possesses the traits needed to be successful in Canada’s cannabis industry and are bullish on the direction the management team is bringing the business. At current levels, we believe the Canadian cannabis brand has a compelling valuation and a favorable risk-reward profile.

If you are interested in learning more about The BC Bud Co., please send an email to support@technical420.com with the subject “The BC Bud Co” to be added to our distribution list.

Company Relationship Disclosure

T420 is responsible for the T420 opinions provided in this disclosure except all sources or information provided by other parties were not verified or authenticated and T420 does not undertake to confirm or substantiate or be responsible for such information provided by other parties.

Any Content posted regarding a Profiled Issuer is not a solicitation or recommendation to buy, sell or hold securities. We cannot and do not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. All information should be independently verified. We are not responsible for errors or omissions in our publications, and any opinions expressed are subject to change, without notice. We do not, nor are we under any obligation to undertake due diligence or investigation or authenticate and verify whatsoever regarding Profiled Issuers or any Content posted in relation thereto and we do not receive any verification from the Profiled Issuer regarding the Content we disseminate. Similarly, while we endeavor to facilitate the provision of quality information, we are not responsible for any loss or damages caused or alleged to have been caused by its use nor verify or authenticate or update such information.

Pursuant to an agreement between Spotlight Media Corp. and The BC Bud Co. we have been hired for a period of 180 days beginning February 15, 2023 and ending August 15, 2023 to publicly disseminate information about The BC Bud Co. including on the Website and other media including Facebook and Twitter. We are being paid $2,200 per month The BC Bud Co. and were paid “ZERO” shares common shares. We hold “ZERO” shares common shares. We will not sell or purchase shares during the Term. We reserve the right to buy or sell shares after the Term in accordance with State and Federal securities laws. See “Disclosures” below which is to be read in conjunction with this release.

This article contains forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs regarding future performance are “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expects”, “does not expect”, “is expected”, “believes”, “intends”, “anticipates”, “does not anticipate”, “believes” or variations of these words, expressions or statements, that certain actions, events or results “may”, “could”, “would”, “might” or “will be” taken, will occur or will be realized. Such forward-looking statements involve risks, uncertainties and other known and unknown factors that could cause actual results, events or developments to differ materially from the results, events or developments expected and expressed or implied in such forward-looking statements. These risks and uncertainties include, but are not limited to, dependence on obtaining and maintaining regulatory approvals, including the acquisition and renewal of federal, provincial, state, municipal, local or other licenses, and any inability to obtain all necessary government authorizations, licenses and permits to operate and expand the Company’s facilities; regulatory or policy changes such as changes in applicable laws and regulations, including federal, state and provincial legalization, due to fluctuations in public opinion, industry perception of integrative mental health, including the use of psychedelic-assisted therapy, delays or inefficiencies or any other reason; any other factor or development likely to hamper the growth of the market; the Company’s limited operating and profitability track record; dependence on management; the Company’s need for additional financing and the effects of financial market conditions and other factors on the availability of capital; competition, including that of more established and better funded competitors; the impact of the Russia-Ukraine conflict on the global economy; the continued impact of the COVID-19 pandemic; and the need to build and maintain alliances and partnerships, including with research and development companies, customers and suppliers. These factors should be carefully considered, and readers are cautioned not to place undue reliance on forward-looking statements. Despite the Company’s efforts to identify the main risk factors that could cause actual measures, events or results to differ materially from those described in forward-looking statements, other risk factors may cause measures, events or developments to materially differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking statements. The Company does not undertake to revise forward-looking statements, even if new information becomes available as a result of future events, new facts or any other reason, except as required by applicable laws

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Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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