Gourmet Provisions International Corp. is Hungry f
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Gourmet Provisions International's $675,000 Pizza Fusion deal, near-term celebrity-partnered product launch, and planned NASDAQ uplist set stage for valuation surge in 2021, says Soulstring Media
Miami Beach, Florida--(Newsfile Corp. - May 11, 2021) - As the pandemic eases its grip on a hungry nation, paying attention to companies in the food and beverage sector may be a wise choice. Hospitality stocks across the board have seen valuations get crushed. In many cases, those losses make sense, especially to those that saw revenues decrease sharply over the past year. However, not all stocks deserve to be included in the downdraft. Gourmet Provisions International Corp. (OTC Pink: GMPR), for instance, shows that despite massive logistical challenges to the sector, it can still grow its brands and position to emerge stronger than ever in the back half of 2021.
Like its competitors, GMPR shares are off their 52-week highs. But, by pushing a strategy to take advantage of emerging opportunities in the sector, that could change. Help in that respect could come from GMPR adding significant talent to its leadership team, completing potentially transformative acquisitions, and diversifying its product and asset portfolio to strengthen and de-risk its long-term strategic plan. As GMPR notes, they expect growth to come sooner rather than later.
In a short period, GMPR has evolved from a three-store pizza business to one that has multiple shots at revenue-generating goals through four wholly-owned subsidiaries. And with the company well-positioned to capitalize on a strengthening economy that is ready to get social, GMPR is in the right sector at the right time to maximize near and long-term market opportunities.
Beefing Up Its Product Arsenal
The company's current stock price of $0.05 may be unfairly valuing its assets. In fact, if not for the global market headwinds, management might have already benefited from acquisitions and product strategies that would typically send valuations higher. Still, holding these levels signifies that investors recognize the intrinsic value in the product and asset portfolio. Some competitors, once strong, have gone closer to zero.
That's not the case for GMPR. While management would undoubtedly welcome a higher share price, the excellent news is that they have a strategy in place to earn back every dollar of valuation lost during the COVID-19 crisis. Adding Jack Brewer from Brewer Media Group as a Brand Ambassador helped kick off a solid start to 2021. The better news is that the efforts placed in Q1 set the stage for a potentially prosperous back half of the year.
Already, GMPR is seeing revenue-generating results from strategies that drive online sales and maximize market opportunities from its product pipeline. Boosting those efforts is a considerably stronger social media presence and a refined commitment to capitalize on strategic and accretive acquisition opportunities. Moreover, as a publicly-traded company, GMPR can tap the equity markets to raise capital to accelerate acquisition strategies and take advantage of possible re-branding opportunities with small to mid-size food service locations. Keep in mind, too, GMPR is already well-positioned to expand its business presence through its operating subsidiaries.
GMPR could leverage several wholly-owned brands. It's Jose Madrid Salsa, Pizza Fusion, Unique Tap House, and PopsyCakes businesses are all ripe for expansion. A licensing agreement with Christopher Street Products could also add additional near-term value if GMPR wants to invest in expanding that opportunity.
Notably, a deal announced in February though its Pizza Fusion subsidiary is expected to generate upwards of $675,000 in high margin revenue in the coming weeks. Moreover, GMPR expects those orders to continue as consumers have been prompted to change dining habits and eat more meals at home.
And there's more.
Celebrity-Partnered Brands Coming Soon!
Gourmet Provisions teased investors In April, announcing a partnership with a New York Times Best Selling Author & Popular Comedian. Although GMPR is holding back the celebrity's name for now, what they did say is that the "well-known" personality will help establish and launch a gourmet line of "celebrity-branded" food products starting with his personal line of pancake mix & syrup. Gourmet Provisions expects the deal to be a significant value driver this year. Here's why:
First, GMPR gets an additional revenue-generating product. Second, which could bode well for its share price, is a catalyst from when the celebrity name is released and the marketing campaign officially starts. Incidentally, celebrity branding has become an enormous market, with everything from premium spirits to cupcakes being developed, endorsed, and launched into a demand-filled market.
Gourmet Provisions is building this brand for success. For the past six months, GMPR has been working with their partner and with New Hope Mills to develop what they believe can be a leading custom line of Gourmet Pancake Mix & Maple Syrup. Once launched, GMPR will be seizing upon an enormous market opportunity, with Statista Research saying that more than 272.72 million Americans used pancake and table syrup in 2020.
Better still, with marketing a verifiable key to success, GMPR has been working closely with Parlor City Box Company to create a custom private labeled pancake mix box and syrup label designed to attract consumers with exciting colors and imagery. And while President and CEO James Vowler still needs to keep some of the details under wraps, he noted that the company is extremely excited to introduce his newest products to market and to the massive social media following of his celebrity partner. He believes the products will provide an exponential boost to sales.
Positioned To Accelerate Growth
What must be understood is that Gourmet Provisions is a survivor of one of the most unprecedented economic disruptions in history. It's different from the Great Depression in that the logistics chain literally broke down. Inventories were scarce, and deliveries from overseas were at a virtual standstill. While the Great Depression had its roots in financial markets, the hospitality sector was affected by COVID-19, which shut the doors at restaurants, bars, and event centers across the country. Both circumstances were brutal for the times. However, with the pandemic easing its grip on the United States, companies are ready for action. And GMPR is not shying away from the challenge.
Beyond plans to introduce new products to market and strengthen its subsidiaries, GMPR took an opportunity to shore up its capital structure. That means investors and management are aligned in its vision to jump-start growth.
In February, GMPR announced they have signed Lock-Up Agreements with their Noteholders. These agreements limit each Noteholder to convert a total of eight million common shares until August 31, 2021. That's a significant agreement that is beneficial to shareholders, the company, and the Noteholders. Moreover, the deal provides Gourmet Provisions the time needed to audit financials, make its S-1 filing, sign an Underwriter, and create the value required to qualify and complete its planned uplisting to the NASDAQ stock exchange.
Investors also are embracing the Authorized Share reduction from 3 billion to less than 300 million. Better still, GMPR has only about 75 million shares issued and outstanding. That relatively low share count could help drive valuations higher using peer-based revenue multiple models. And while the $233K profit in Q3 of 2020 went under the radar when announced, similar results or better in Q4 could earn greater investor attention.
2021 Could Offer Enormous Opportunity
There's a lot of moving parts to the Gourmet Provisions story. And the great news is that its strategies are designed to be accretive toward its common operational goals. Moreover, its growing revenues, new celebrity-partnered products that are about to hit the markets, and its capital structure with roughly 75 million shares in the public float combine to position GMPR for near and long-term growth.
Further, even without the noteholder lock-up periods through August, GMPR has assembled a compelling presentation to justify its value proposition. However, it's foolish not to recognize the value in noteholders aligning with investors for at least 90 days from now. Not only are they showing confidence through their wallets, but they are also helping contribute to GMPR's planned crown jewel of milestones- its NASDAQ market uplist.
And it's a milestone they expect to reach quickly, especially with the assistance of advisors familiar with the uplist process and from its planned hiring of auditors, which completes the checklist ahead of its application to be listed on a more senior NASDAQ exchange.
Undoubtedly, Gourmet Provisions has taken the proper steps at the right time to have its company emerge more potent than ever in 2021. A lock-up on noteholders, a massive reduction in authorized shares, a strong Q3 that delivered $233 in profit, a $675,000 pizza deal, and a celebrity-partnered deal expected to drive millions in new revenues are a few things that make GMPR a diamond in the rough.
Its strengthened management team, its accretive acquisition strategy, and its ability to close deals, however, is what can help polish this rough diamond into a shiny micro-cap gem. GMPR has indeed set itself up for a breakout year.
Media contact:
ken@soulstringmedia.com
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SOURCE Soulstring Media Group
https://www.newsfilecorp.com/newsinfo/83321/130