NEW YORK, NY / ACCESSWIRE / July 17, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage on Regulated Solutions Group, Inc. with a target price of $2.05.
The report is available here: July 2018 Initiation Report.
We initiate coverage of Regulated Solutions Group, Inc. (Private, "Regulated Solutions") with a price target of $2.05 per share. Regulated Solutions believes it is the first full-service compliance and regulatory platform for experiential marketing in the hemp and legal cannabis industry. The company's core services include compliance, marketing, consumer engagements and experiences, and data analytics. Regulated Solutions is initially focused on providing rich experiential marketing for regulated consumer packaging companies in the cannabis, hemp and tobacco industries. Experiential marketing, which directly engages consumers at events, or in other live settings, and invites them to participate in the evolution of a brand, is one of the fastest growing segments of the marketing industry due to its natural synergies with social media and digital marketing. In our view, experiential marketing appears to be a natural fit for the hemp, and cannabis segments, and the complex and evolving regulatory and legal environment for this burgeoning industry has created what appears to be a significant need for specialists like Regulated Solutions.
INVESTMENT HIGHLIGHTS
Regulated sitting at intersection of powerful markets
Regulated Solutions is seeking to establish itself as the leader in compliance and experiential marketing for the hemp and cannabis industries. Experiential marketing has been one of the strongest performing areas of the marketing industry in recent years. Research firm Catalyst Insights, for example, reported that the global event and experiential marketing industry grew by 11% in 2017, and the US Bureau of Labor estimated that the event industry would grow by 44% from 2010 to 2020. According to the Hemp Business Journal, total sales for US Hemp are expected to grow from $820mn in 2017 to $2.5 billion by 2022E. Similarly, the legal cannabis market is one of the fastest growing industries in North America with recreational marijuana legal in nine US states, including California, and medical marijuana legal in 29 states. Meanwhile, on June 19, 2018, Canada became the second country to legalize cannabis nationwide. According to Arc View Market Research, US legal cannabis sales are expected to grow from $6.7 billion in 2016 to $21.8 billion by 2020. According to Advertising Week, there are expected to be 50,000 cannabis related companies in North America alone. This represents a massive pool of potential customers which could support growth for Regulated Solutions for some time as they seek to introduce their brands to consumers in a highly engaged fashion.
Regulated well suited to offer compliant solutions for cannabis industry
Given the evolving and complex regulatory and legal landscape for the cannabis industry in the United States, Regulated Solutions appears to have a market vision well matched with industry needs. Indeed, led by CEO Frederic "Ted" DeHon, the company's management team and advisors have over 80 years of relevant experience with regulated consumer packaged goods in the tobacco and alcohol industries. This includes impressive relationships working with some of the world's largest and most recognizable regulated consumer packaged goods brands, including top five global tobacco and liquor brands.
Initiating coverage of Regulated Solutions with price target of $2.05
We initiate coverage of Regulated Solutions with a price target of $2.05. We find Regulated Solutions to be an intriguing company operating at the intersection of multiple large and growing markets with significant potential - hemp, legal cannabis and experiential marketing. We view the company as offering high risk and high growth potential with an attractive market vision.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Regulated Solutions Group, Inc.
Regulated Solutions, Inc. is the first full-service compliance marketing platform in the hemp and cannabis industries for compliant consumer activations, and event experiences. Regulated Solutions addresses the growing need for compliance in marketing Regulated Consumer Package Goods, with management having successfully executed thousands of compliant events nationwide. http://www.regulatedsolutions.com
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative approach to deliver equity research of microcap and smallcap companies. SeeThruEquity has also been the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion since 2012.
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