CNRP Mining Inc (OTCMKTS:CRPGF) can be termed as one of the market’s biggest gainers over the past month as a result of a price rally that has been witnessed over this period.
Investors who had invested significant amounts in this stock most certainly are ready and secure to retire.
This is due to the company’s share price surge. The share price rose from $0.0067 in late September 2017 to close October at $0.85 representing a near 125 multiple to the initial price. This rally may also explain why the trading volumes rose to astronomical values as compared to the company’s past months’ trading volumes as can be seen in the charts below:
From this, the question on investors’ minds should be: Is this due to value addition or just another market frenzy?
Well, we have got you covered. We are looking to answer that question in the best way we know how, giving you research on who the company is, what their value proposition is, how they plan to grow and finally whether their financial position merits their promises of growth.
However, for readers who have heard of CRPGF for the first time, here is a brief look into the company.
CRPGF: The Basics
CNRP Mining (“CNRP”) is a Vancouver based mineral company that was focused on developing its 100% owned Elmtree Gold Project in New Brunswick, Canada.
Over the recent past, they have been players in this industry: not any more.
The company’s latest news has been driving the market into a frenzy. The management made a decision to venture into the cannabis industry through a major acquisition they made that is discussed below. According to the market, this move is bound to elevate them to much higher levels given its timely nature.
As such, let us review this new move.
X Sprays: The Company’s New High
As previously stated, CRPGF made a new acquisition that is bound to propel them to new heights. This acquisition is founded on their new strategy to venture into the cannabis space and the company of choice: X-Sprays Inc.
The company therefore acquired X-Sprays parent company, B.C. Ltd.
X-Sprays Inc is comprised of dedicated scientists and product engineers who are passionate about health and creating the ultimate deliverysystem for optimal nutrition.The team has focused its efforts in creating a product line of oral sprays to deliver medicines, nutrients and vitamins through the development of 8 novel products focused on enhancing pain relief, awareness, sleep, libido, energy and recovery.
X-Sprays intends to expand its product line to include cannabis tetrahydrocannabinol (THC) and CBD sprays.
With the hemp-based CBD products industry currently growing at a compounded annual growth rate of 50% and expected to grow at an even higher rate into the future courtesy of adoption of the products world over, the company is joining a vibrant and growing industry at the right time.
With the company poised and ready for commercialization of their produce over the next few months, the decision by management at CRPGF is therefore one of the most timely in the market.
Revenues generated by the X-Sprays are expected to increase courtesy of their novel products is bound to be quite high and with this coupled with their long product line is bound to elevate them to new levels.
The biggest beneficiary: CNRP Mining Inc.
Given that CNRP Mining Inc has made no previous revenues courtesy of their prior bet going wrong and an amortization that has led them to incur a significant expense of over $5 million, a revenue increase would be quite welcome in their quarters.
The market seems to therefore have rewarded the company for making a good move that will benefit shareholders.
However, with this being said, it is important to assess whether their financial position brings with it any good fortunes and whether the company’s management will need to find different strategies to enable their growth in the new industry they are in.
How Strong Are Their Finances?
As earlier stated, the company has not been able to generate any revenues over the recent past. As such, it comes as no surprise that they made losses amounting to $31,000 in the 1Q2107 which is higher than the $3,000 loss in the previous quarter.
This loss was mainly attributable to an increase in legal and professional fees as well as severance package for former managers which stood at $11,498 and $20,000 respectively. Management expects that this loss will, however, be mitigated by an increase in their revenue position in future.
These shortfalls are overcome by the fact that the company made share issues through to the third quarter of 2017.
Over the second quarter (2Q217), the company issued over 5 million shares in 2 tranches: 3.73 million shares at $0.3 per share and 1.68 million shares at $0.3 per share. The shares above also had embedded warrants attached to them (the prices above were the amended prices). They raised a total of $1.1 million from the first tranche and $504,999 from the second. This, however, was not the end.
They further issued 10 million shares in private placements at $0.3 per share which closed in September 2017. This was meant to raise the finances for investment in X-Sprays Inc in a move which seems to have paid off for them.
Such investments signify the investors’ belief in the future prospects of the company and their ability to grow. As such, we expect a lot of good news going forward from CNRP Mining Inc.
Despite many setbacks, the company seems to be making the right decisions and moving forward is expected to grow beyond its current bounds to dominance of its new market.
CRPGF gives a story of bouncing back from turmoil and reading quite well into a new industry. The company is currently expected to grow into the future; a welcome relief for its shareholders. We expect that they will take the industry by storm and soon enough dominate the market for CBD sprays.
We will be updating our subscribers as soon as we know more. For the latest updates on CRPGF, sign up below!
Disclosure: We have no position in CRPGF and have not been compensated for this article.