Many publicly-traded companies fit neatly into growth or value baskets, giving investors a choice between solid fundamentals or significant growth potential. As a result, investors may want to look closer when a company offers both improving fundamentals and considerable upside potential in a single package.
BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) (CSE: BYND) recently announced improving third-quarter financial results thanks to its CRM business and a significant boost to its net assets following its EZ-G acquisition. And at the same time, its medical cannabis unit offers significant upside potential over the long term.
Cannabis-Driven Catalysts
BYND Cannasoft Enterprises acquired Zigi Carmel Initiatives & Investments in September 2022, providing it with a groundbreaking CBD-based therapeutic device with significant long-term potential to disrupt the sexual health industry.
The company’s EZ-G is a unique, patent-pending device that regulates the flow of therapeutic liquids, such as CBD oil, into the soft tissues of the female reproductive system. With the U.S. sexual health market reaching $9.34 billion by 2026, CBD products could be central in addressing many underlying problems.
In addition to the EZ-G device, the company is securing the licenses and approvals necessary to execute an agreement with a licensed Israeli grower to produce and distribute various medical cannabis products under a private label to pharmacy chains across Israel. Management hopes to capture a 3% market share worth $15 million in annual revenue.
Finally, the company aims to apply its CRM system to the cannabis industry by introducing modules for managing farms and greenhouses. Through a horizontal market expansion, the company aims to increase sales cost-effectively. For instance, it signed a CRM licensing agreement in September with the Weizmann Institute of Science.
Strong Q3 Financial Results
BYND Cannasoft Enterprises is also generating strong financial results in the current quarter, moving closer to a breakeven point.
The company recently announced net assets that increased from about $7.5 million on December 31, 2021, to $44.5 million on September 30, 2022. At the same time, the company reported a 10% increase in revenue to $227,954 with a 58% gross margin. And its net loss narrowed by 79% to $964,462, moving it closer to a breakeven point.
“We have continued our trend from prior periods of increasing gross margins while decreasing overall losses,” said CEO Yftah Ben Yaackov. “We have strengthened our balance sheet with the acquisition of Zigi Carmel Initiatives and Investments Ltd. and believe the EZ-G device will create significant value for our shareholders.”
Shortly after posting the financial results, the company announced an agreement to provide its cloud-based CRM software to one of Israel’s leading air conditioning companies. As part of the deal, BYND Cannasoft plans to design and manufacture modules dedicated to the air conditioning industry to sell to other leading firms over time.
Looking Ahead
BYND Cannasoft Enterprises Inc. (NASDAQ: BCAN) (CSE: BYND) represents a unique combination of improving fundamentals and long-term growth prospects. As a result, investors have an opportunity to acquire a stock moving closer to break even while retaining significant upside potential from cannabis-driven catalysts.
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