$GMPR: Gourmet Provisions International Corp. Inks
Post# of 6022
Gourmet Provisions International's $675,000 Pizza Fusion deal isn't the only value-driver. Its near-term celebrity-partnered product launch could help fuel a rise in valuation in 2021, says Soulstring Media
Miami Beach, Florida--(Newsfile Corp. - May 13, 2021) - As the markets start their return to normalcy from more than 18 months of pandemic-related shutdowns, sector analysts suggest that companies in the food and beverage sector may be the recipient of a sharp snap-back rally. Such speculation makes sense, with hospitality stocks across the board possibly offering more inherent value from beaten down prices. The good news is that some companies are positioned to recover faster than others. Gourmet Provisions International Corp (OTC Pink: GMPR) could be one of them. And with several deals, including a Pizza Fusion deal worth an estimated $675,000 in the coming weeks, their recovery could come sooner rather than later.
Like its peers, GMPR shares are battling a touch micro-cap market and are trading at roughly the mid-point from its 52-week highs. But, several catalysts could change the trajectory, including the launch of a celebrity-partnered pancake and syrup product, an expansion of its subsidiary company ownership, and enhancing a licensing agreement with Christopher Street Products. Driving the growth is a leadership team that has proven their ability to make potentially transformative acquisitions and at the same time diversify its product and asset portfolio to strengthen and de-risk its long-term strategic plan.
Gourmet Provisions has come a long way in a short period of time, evolving from a three-store pizza business to a company with multiple shots at revenue-generating goals through four wholly-owned subsidiaries. And with GMPR taking steps to position itself to capitalize on a strengthening economy, management expects to leverage its strengths in its bid to emerge the market slumber stronger than ever.
The excellent news is that potentially transformative revenue-generating deals could help accelerate its return.
Inherent Value To Asset Portfolio
The company's current stock price of $0.05 may not fairly represent its current asset base. In fact, if not for the global market headwinds, its most recent revenue-generating agreements may have already taken the stock well beyond its 52-week high of $0.15. Still, while current price levels may appear to undervalue the company, it's important to note that some competitors, once strong, have gone closer to zero.
Clearly, that's not the case for GMPR. And while management would certainly welcome a higher share price today, the excellent news is that they are advancing a strategy with a near-term goal of earning back every dollar of valuation lost during the COVID-19 crisis. Adding Jack Brewer from Brewer Media Group as a Brand Ambassador helped kick-start its ambitious plans. His addition was strengthened by asset-enhancement efforts initiated in Q1 that set the stage for a strong performance during the back half of the year.
The good news is that GMPR is already experiencing revenue-generating results from strategies that drive online sales and maximize market opportunities from its product pipeline. Adding to those gains is a considerably stronger social media presence and a refined commitment to capitalize on strategic and accretive acquisition opportunities. Better still, with market analysts expecting the pace of industry consolidation to accelerate as a result of the pandemic-related slowdown, GMPR may be better positioned than ever to take advantage of acquisition and partnership opportunities. If all goes according to plan, GMPR could indeed blaze a path toward recouping every dollar of valuation lost.
The excellent news is that Gourmet Provisions may be ideally positioned to hit that milestone. As a publicly traded company, GMPR has the unique opportunity to tap the capital markets for funding and capitalize on takeover or re-branding opportunities with small to mid-size food service locations. Keep in mind, too, GMPR is already in an enviable position to expand operations through its subsidiary brands.
In fact, GMPR could leverage its public market perks to expand operations at its wholly-owned subsidiaries, Jose Madrid Salsa, Pizza Fusion, Unique Tap House, and PopsyCakes. A licensing agreement with Christopher Street Products could also add additional near-term value if GMPR wants to invest in expanding that opportunity.
Notably, its Pizza Fusion subsidiary is already having a great start to the year, announcing in February an order expected to generate upwards of $675,000 in high margin revenues. Better yet, with consumer dining habits being forced to change, GMPR expects that order to be the first of many to meet the demands of dine-at-home consumers. If so, revenue multiples could push prices higher.
And there's more.
Celebrity-Partnered Specialty Brands
Gourmet Provisions made a big announcement in April, noting a partnership with a New York Times Best- Selling author & popular comedian. While 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. The deal puts two things in play.
First, GMPR gets an additional revenue-generating product. Second, which could bode well for the stock, 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. Companies like Constellation Brands and Cocoa-Cola have been shelling out billions to own a stake in these niche brands.
Gourmet Provisions could attract similar attention. For the past six months, GMPR has been working with their partner and with New Hope Mills to develop what they believe will be a leading custom line of Gourmet Pancake Mix & Maple Syrup. Notably, GMPR is seizing upon an enormous market opportunity, with Statista Research saying that more than 272.72 million Americans used pancake and table syrup in 2020. Thus, while it sounds appetizing, the deal could be transformative for GMPR.
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 his company is extremely excited to introduce his newest products to market and to the massive social media following of his celebrity partner. GMPR believes the products will provide an exponential boost to sales.
Strategies To Accelerate Growth
What must be understood is that Gourmet Provisions is a survivor of one of the most unprecedented economic disruptions in history. They survived a period when inventories were scarce, and deliveries from overseas were at a virtual standstill. Undoubtedly, the hospitality sector was the hardest hit by the effects COVID-19, which shut the doors at restaurants, bars, and event centers across the country. However, with the pandemic finally easing its grip on the United States, companies are ready for action. And GMPR is not shying away from its opportunity to maximize near term growth opportunities.
Earlier this year, GMPR took steps to strengthen its balance sheet to accelerate growth. In February, GMPR announced executing Lock-Up agreements with their noteholders. These agreements limit each noteholder to convert a total of only eight million common shares until August 31, 2021. That's a significant agreement that is beneficial to shareholders, the company, and the Noteholders.
It's especially good because it removes a conversion feature that may have kept a lid on the stock. Moreover, the deal provides Gourmet Provisions the time needed to audit financials, make its S-1 filing, sign an underwriter, and best of all to create the value required to qualify for its planned uplisting to the NASDAQ stock exchange.
Investors also cheered the Authorized Share reduction from 3 billion to 300 million. Today, 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. Thus, having the time to generate value from its near-term initiatives also limits potential dilution by noteholders later this year.
Thus, a convergence of balance sheet improvements, standstill agreements, product deals, and a strengthening economy are combining to make the remainder of 2021 a potentially strong period of growth for the company.
2021 Could Offer Enormous Opportunity
There's a lot of moving parts to the Gourmet Provisions story. And the excellent news is that its strategies are designed to be accretive toward its common operational goals. Moreover, its growing revenues, new celebrity-partnered products, and its substantially improved capital structure with only 75 million shares in the public float should combine to position GMPR for impressive near and long-term growth. It also puts them a shorter path to reach its goal of listing on a more senior NASDAQ exchange.
Indeed, Gourmet Provisions has taken the right steps at the right time to have its company emerge more potent than ever in 2021. A friendly lock-up on noteholders, a massive reduction in authorized shares, a strong Q3 that delivered $233 in profit, a $675,000 Pizza Fusion deal, and a celebrity-partnered product launch 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 and aggressive acquisition strategy, and its ability to maximize revenue-generating deals, however, is what can help polish this rough diamond into a shiny micro-cap gem.
Media contact:
ken@soulstringmedia.com
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SOURCE Soulstring Media Group
https://www.newsfilecorp.com/newsinfo/83659/130