when u look at TLSS and KWBT similar SS and Revs a
Post# of 98042
May 25, 2020 11:53 PM ET|About: Kiwa Bio-Tech Products Group Corporation (KWBT), Includes: MBII
• 2018 Sales $30.6 million; Estimated 2019 Sales $40 million; Could be close to $50 million 2020; and market cap only $5 million
• Price artificially depressed by convertible debt holders that have been aggressively selling KWBT shares without regard to valuations, creating extraordinary bargain prices
• Bio-fertilizer production expanded from 200,000 tons to 300,000 tons annually
• Signed agreement with Huaxialitai Co., Ltd for initial order Q2 2020 of $7.5 million USD
• MBII is very similar company but with 25% smaller sales and yet market cap of $160 million; If KWBT was valued at $160 million, that translates to about $.56 per KWBT share
• New $14 million loan should enable KWBT to pay off convertible sellers which could allow price to rebound from current depressed levels.
Kiwa Bio-Tech Products Group Corp. (OTCPK:KWBT) is an emerging agricultural company that develops, manufactures and distributes innovative and environmentally safe bio-technological products for agriculture and aquaculture markets with corporate headquarters in the Yangling, Shaanxi, China. Kiwa’s focus is to positively impact the environment by reducing the amount of chemical fertilizers that are being used by agricultural growers in China.
Kiwa Bio-Tech Products Group Corp. products are covered by patent protection and are designed to enhance the quality of human life by increasing the value and productivity of agricultural crops.
Facing China’s nearly 35 billion USD new fertilizer market in the future, as well as nearly trillion USD soil remediation market, Kiwa will be based on the existing business to rapidly expand fertilizer market share, to obtain soil remediation market share, and of course show shareholders a great performance. Additionally, Kiwa’s employees will increase their efforts to contribute to China’s agriculture and environmental protection.
Kiwa has been reporting continuing strong growth with the nine months ending September 2019 of $31,454,271 on track for close to $40 million for 2019. With the new initial $7.5 million order from Huaxialitai Co., Ltd, and the production expansion from 200,000 tons per year to 300,000 tons per year, Kiwa appears to be on track for close to $50 million for 2020.
Kiwa Bio-Tech Announces 100 Million (RMB) Loan Program To Boost Agriculture Production in China
New $14 million loan enables KWBT to pay off convertible note holders that have been aggressively selling KWBT shares and artificially depressing the share price. If convertible note holders are paid off and cease their aggressive selling of KWBT shares, then simple supply and demand dictate that the extremely depressed KWBT share price will likely rise to more realistic market valuations.
Yangling, Shaanxi, China, April 08, 2020 (GLOBE NEWSWIRE) -- Kiwa Bio-Tech Products Group announced that after 6 months of negotiation Shaanxi Branch of Postal Savings Bank of China (“PSBC”) will provide up to a 100 million RMB (approximately $14 million USD) loan (the “Loan”) to support and boost agriculture economy in China. The Loan program is specially designed by PSBC for Kiwa and issued by Shaanxi Agricultural Credit Financing Guarantee Co., Ltd. (“SACFG”) for farmers to purchase Kiwa’s fertilizer products and technical services.
Mr. Wade Li, CEO of Kiwa Bio-Tech commented, “SACFG is a guarantee company of the Shaanxi Provincial Government. SACFG highly recognizes the Company’s business development in Shaanxi and will support the implementation of Company’s Trinity marketing strategy in the province. Providing loans to Kiwa’s customers will greatly reduce the proportion of accounts receivable in sales of fertilizer, optimize operation structure, and improve financial management capabilities.”
Mr. Man Yun, CFO of Kiwa Bio-Tech commented, “It is the first time that we have utilized bank lending facilities in nearly 20 years. This credit facility will enhance our cash flow and enable us to accelerate production and sales. At present, we have several convertible notes in the United States of America which mature in the current fiscal year and we have started negotiations with these convertible notes holders regarding repayment. We are striving to reach agreement with these creditors and repay these convertible notes in cash by the end of April 2020.”
Market Comp: Marrone Bio Innovations, Inc.Marrone Bio Innovations Inc. (NASDAQ: MBII) is a growth-oriented company leading the movement to a more sustainable world through the discovery, development and sale of innovative biological products for crop protection, plant health and waterway systems treatment that help customers operate more sustainably while increasing their return on investment.
Marrone Bio Innovations, Inc.
Conclusion
KWBT has reported solid and continuing growth in a market sector where demand is strong and expected to continue for the short and long terms. In spite of strong growth, shares of KWBT have been severely depressed by continued selling of KWBT shares without any regard to actual valuations, thus creating what we consider to be an exceptional buying opportunity. If KWBT were valued at $160 million like its smaller comp MBII, that would translate to about $.56 for each KWBT share.