$HIPH Due Diligence Package
Pink Current
A/S - 300Mil
O/S - 162Mil "Confirmed By Company 8/8/18
$HIPH From SeeThruEquitys Report
"We initiate coverage on American Premium Water Corp. (OTC: HIPH, $0.020) with a
price target of $0.15. HIPH is a diversified company focused on premium consumer
brands and products. It currently sells and markets hydrogen-infused water under the
LALPINATM brand and luxury apparel under the Gents brand. We expect HIPH
growth to be supported by two commercial initiatives planned for this year: Hydrogeninfused
Water and Hydrogen CBD-infused Water. Both product lines have high
potential given: 1) the rising consumer interest in legal CBD products; and 2) the
large and expanding market for functional water. LALPINATM Hydrogen is already
selling via select channels, and the company is planning for a full-scale launch in the
coming quarters. LALPINATM Hydrogen CBD debuted in January 2018, and it is
expected to be launched in June 2018."
$HIPH Company Facts
"HIPH manufactures and distributes consumer products under the LALPINATM and
Gents brands. The LALPINATM brand focuses on hydrogen infused bottled water via
its two products: LALPINATM Hydrogen (launched in 1Q18) and LALPINATM Hydrogen
CBD (to be launched in June 2018). The bottled water market with functional benefits
such as added alkalinity, electrolytes, vitamins, minerals is seeing significant traction
among consumers. The shift in consumer preference to healthier and nutritional
drinks is likely to further drive the growth of functional water market. The functional
bottled water market in the US is expected to reach ~$2.9 billion by 2020. HIPH has
an early mover advantage in the hydrogen infused water market which currently has
limited competition. LALPINATM Hydrogen CBD is a front runner in the space as the
only known hydrogen infused CBD beverage available on the market. The primary
competitive advantage is that it improves bioavailability of CBD and absorption. The
CBD market could reach $2.1 billion by 2020, according to Hemp Business Journal.
Gents is a producer of luxury hats and other fine accessories and apparel. Presence
in 200 retail outlets internationally including upscale names such as Bloomingdale’s,
Nordstrom, and Saks Fifth Avenue strengthens its positions as a luxury brand. The
acquisition of New York-based streetwear brand, Worthy further diversifies the
apparel revenue stream. It will expand the price points offered by Gents and opens
up many new distribution channels."
$HIPH/ Financial Outlook
For F2018, we forecast revenues of ~$1.8 million, primarily driven by the rollout of LALPINATM Hydrogen,
LALPINATM Hydrogen CBD as well expansion of Gents brand in China. We expect the LALPINATM hydrogen
water to be distributed at more GNC locations after the initial successful pilot at its two California locations.
We expect HIPH to deliver gross margins of ~65% in F2018. We model total EBITDA of ~$38,250 for F2018.
For F2019, we expect the sales momentum to continue driven by product expansion, strategic partnerships
and M&A in consumer, beverage and blockchain space. Heavy marketing efforts are expected to lead to
increased clientele, brand recognition and more orders. We expect HIPH to expand operations in other
regions as well. This should further boost the topline. We model revenues at ~$5.5 million for F2019. We
expect the sales traction to continue in F2020 as well. We model gross margins of 65% and expect the
company to deliver EBITDA of $603,950 (margin 11.0%) for F2019. We note that our forecast assumes that
the company is able to launch its LALPINATM Hydrogen CBD by June 2018.
$HIPH Recent News From 8/8/18
Ryan Fishoff, CEO of American Premium Water Corporation, commented, “The Company has filed the IP for LALPINA CBD products. This is another necessary and critical step in advance of our launch of LALPINA Hydro CBD. We want to take all necessary steps to protect our first to market advantage. I am happy to announce that the Company has formally added David Schechtmann as President of American Premium Water Corporation. His addition will be great for the company as we begin to ramp up the rollout of LALPINA Hydro CBD. He (David) will be a key asset with his legal background as we are in the process of evaluating several CBD related acquisitions.
Investors Accumulating As Much As They Can At These Levels.
Pink Current
A/S - 300Mil
O/S - 162Mil "Confirmed By Company 8/8/18
$HIPH From SeeThruEquitys Report
"We initiate coverage on American Premium Water Corp. (OTC: HIPH, $0.020) with a
price target of $0.15. HIPH is a diversified company focused on premium consumer
brands and products. It currently sells and markets hydrogen-infused water under the
LALPINATM brand and luxury apparel under the Gents brand. We expect HIPH
growth to be supported by two commercial initiatives planned for this year: Hydrogeninfused
Water and Hydrogen CBD-infused Water. Both product lines have high
potential given: 1) the rising consumer interest in legal CBD products; and 2) the
large and expanding market for functional water. LALPINATM Hydrogen is already
selling via select channels, and the company is planning for a full-scale launch in the
coming quarters. LALPINATM Hydrogen CBD debuted in January 2018, and it is
expected to be launched in June 2018."
$HIPH Company Facts
"HIPH manufactures and distributes consumer products under the LALPINATM and
Gents brands. The LALPINATM brand focuses on hydrogen infused bottled water via
its two products: LALPINATM Hydrogen (launched in 1Q18) and LALPINATM Hydrogen
CBD (to be launched in June 2018). The bottled water market with functional benefits
such as added alkalinity, electrolytes, vitamins, minerals is seeing significant traction
among consumers. The shift in consumer preference to healthier and nutritional
drinks is likely to further drive the growth of functional water market. The functional
bottled water market in the US is expected to reach ~$2.9 billion by 2020. HIPH has
an early mover advantage in the hydrogen infused water market which currently has
limited competition. LALPINATM Hydrogen CBD is a front runner in the space as the
only known hydrogen infused CBD beverage available on the market. The primary
competitive advantage is that it improves bioavailability of CBD and absorption. The
CBD market could reach $2.1 billion by 2020, according to Hemp Business Journal.
Gents is a producer of luxury hats and other fine accessories and apparel. Presence
in 200 retail outlets internationally including upscale names such as Bloomingdale’s,
Nordstrom, and Saks Fifth Avenue strengthens its positions as a luxury brand. The
acquisition of New York-based streetwear brand, Worthy further diversifies the
apparel revenue stream. It will expand the price points offered by Gents and opens
up many new distribution channels."
$HIPH/ Financial Outlook
For F2018, we forecast revenues of ~$1.8 million, primarily driven by the rollout of LALPINATM Hydrogen,
LALPINATM Hydrogen CBD as well expansion of Gents brand in China. We expect the LALPINATM hydrogen
water to be distributed at more GNC locations after the initial successful pilot at its two California locations.
We expect HIPH to deliver gross margins of ~65% in F2018. We model total EBITDA of ~$38,250 for F2018.
For F2019, we expect the sales momentum to continue driven by product expansion, strategic partnerships
and M&A in consumer, beverage and blockchain space. Heavy marketing efforts are expected to lead to
increased clientele, brand recognition and more orders. We expect HIPH to expand operations in other
regions as well. This should further boost the topline. We model revenues at ~$5.5 million for F2019. We
expect the sales traction to continue in F2020 as well. We model gross margins of 65% and expect the
company to deliver EBITDA of $603,950 (margin 11.0%) for F2019. We note that our forecast assumes that
the company is able to launch its LALPINATM Hydrogen CBD by June 2018.
$HIPH Recent News From 8/8/18
Ryan Fishoff, CEO of American Premium Water Corporation, commented, “The Company has filed the IP for LALPINA CBD products. This is another necessary and critical step in advance of our launch of LALPINA Hydro CBD. We want to take all necessary steps to protect our first to market advantage. I am happy to announce that the Company has formally added David Schechtmann as President of American Premium Water Corporation. His addition will be great for the company as we begin to ramp up the rollout of LALPINA Hydro CBD. He (David) will be a key asset with his legal background as we are in the process of evaluating several CBD related acquisitions.
Investors Accumulating As Much As They Can At These Levels.
