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Your weekly dose of actionable deal flow intelligence by DailyDAC.
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By DailyDAC™ • Issue #48 • June 15, 2022
A curation of actionable deal flow intelligence using some very proprietary sources, some public (but dispersed) data and a lot of spit & vinegar.
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- Super Star Market. Convenience store. Bulk Sale. The name and business address of the Seller is Gurpartap LLC, 103 E 12th Street, Marysville, California 95901. The name and business address of the Buyer is Avtar Singh Bains, 1224 Ramires Street #B, Marysville, California 93907. The assets to be sold are generally described as an ABC License and transfer of License No. 550084. The bulk sale will be held on June 27, 2022. More info: Kathryn Grossman of First American Title Company, Escrow Officer (Escrow No. 5102-6799269), located at 415 Century Park Drive, Yuba City, California 95991. Deal ID: 33759
- Bonfare Market #36. Grocery store. Bulk Sale. The name and business address of the Seller is Iqbal Singh Sahota, 2817 Redwood Parkway, Vallejo, California 94591. The name and business address of the Buyer is Alawi N Hugais, 512 Cedar Street, Vallejo, California 94591. The assets to be sold are generally described as fixtures, equipment, inventory, and all business assets. The bulk sale will be held on June 27, 2022. More info: Bay Area Escrow Services located at 2817 Crow Canyon Road, Suite 102, San Ramon, California 94583. Deal ID: 33761
- Superior Plantscapes. Interior plant services company. Bulk Sale. The name and business address of the Seller is SKVJ First Equity Inc., 327 E. Commercial Street, Pomonal, California 91767. The name and business address of the Buyer is Arturo Quevedo, 5002 W, 140th Street, Hawthorne, California 90250. The assets to be sold are generally described as FF&E, tradename, covenant not to compete, goodwill, lease, leasehold improvements. The bulk sale will be held on June 24, 2022. More info: Gina Kang of Escrow World Inc., Escrow Officer (Escrow No. 105114-GK), located at 416 S. Spring St., Suite 408, Los Angeles, California 90013. Deal ID: 33771
- Richmond Motorsports. Motorsports store. Bulk Sale. The name and business address of the Seller is ZS Holdings LLC, 12560 San Pablo Ave, Richmond, California 94805. The name and business address of the Buyer is Bear Equity Holdings LLC, 12560 San Pablo Avenue, Richmond, California 94805. The assets to be sold are generally described as all FF&E, tradename, goodwill, leasehold improvements, covenant not to compete and all other assets of the business. The bulk sale will be held on June 24, 2022. More info: Business & Escrow Service Center, Inc. located at 3031 Tisch Way, Suite 310 San Jose, California 95128. Deal ID: 33772
- Kim’s Wash Time. Laundromat. Bulk Sale. The name and business address of the Seller is Kimberly T. Hoang, 8118 West Lane #30 Stockton, California, 95210. The name and business address of the Buyer is Hadlaun LLC, 3126 Autumn Chase Circle, Stockton, California 95219. The assets to be sold are generally described as FF&E, goodwill, and other property. The bulk sale will be held on June 29, 2022. More info: Stewart Title of California, Inc. located at 401 Primrose Road Street F, Burlingame, California 94010. Deal ID: 33777
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Chapter 7 Bankruptcy - 363 Sales |
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- Elite Aerospace Group, Inc. Aerospace and defense company. Chapter 7 Bankruptcy 363 Motion filed. In re: Elite Aerospace Group, Inc. Case number 8:21-bk-12231 (filed in the Central District of California, Judge Theordor Albert). The debtor’s address is 9 Studebaker Irvine, CA 92618-2013. The debtor desires to sell a comprehensive list of inventory made available on the attached motion. The proposed sale of inventory will have a potential bidder agreeing to a minimum overbid price of $225,000. The purchase is subject to overbids from third parties which must be made at least three business days prior to the hearing on approval of the proposed sale. The requested minimum initial overbid increment is at least $17,000.00 and subsequent bidding increments of not less than $5,000.00. It is requested that all potential overbidders provide a minimum deposit of $22,500.00 to the trustee at least three business days prior to the hearing on the sale, with all such deposits non refundable on similar terms. The hearing will be June 28, 2022 at 10:30 am local time via ZoomGov. More info: Michael B Lubic of K&l Gates LLP, Debtor’s counsel @ (310) 552-5019 or michael.lubic@klgates.com. Deal ID: 33784
- Stanley Woodworking, Inc. Wooden parts manufacturer. Chapter 7 Bankruptcy 363 Motion filed. In re: Stanley Woodworking, Inc. Case number 1:22-bk-00633 (filed in the Middle District of Pennsylvania, Judge Henry W Van Eck). The debtor’s address is 113 White Top Road, Middleburg, PA 17842. A motion approving the sale of assets was filed on June 7, 2022, and trustee is hereby authorized to sell debtor’s machinery, equipment, inventory and a 2005 Ford Truck. More info: Robert E Chernicoff of Cunningham And Chernicoff PC, Debtor’s counsel @ (717) 238-6570 or rec@cclawpc.com. Deal ID: 33797
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Chapter 7 Filings Involving Companies
With Significant Assets |
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- Sigma Homes LLC. Real estate company. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 2:22-bk-03578 (case filed on Jun 03, 2022 in the District of Arizona, Judge Paul Sala). The debtor’s address is 3120 W Carefree Hwy Suite 1-694 Phoenix, Arizona 85086-3282. It appears to have a functioning and attractive website that advertises a wide variety of real estate, services, and positive reviews. More info: Joel E. Sannes of Udall Shumway PLC, Debtor’s counsel @ (480) 461-5307 or jes@udallshumway.com. Deal ID: 33744
- LB International Inc. Imports and distribution company. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 8:22-bk-71355 (filed on June 8, 2022, in the Eastern District of New York, Judge Alan S Trust). The debtor's address is 150 Engineers Rd, Hauppauge, NY 11788-4027. The debtor runs an import and shipping network out of New York and has a functional website. It lists a wide assortment of inventory, a number of accounts across many different business sectors, and operates fully-staffed offices in Shanghai, Hong Kong, and Taiwan. More info: Adam P Wofse of Lamonica Herbst & Maniscalco LLP, Debtor’s counsel @ (516) 826-6500 or awofse@lhmlawfirm.com. Deal ID: 33790
- Dentcorp Management LLC. Corporate dental services. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 1:22-bk-54412 (filed on June 9, 2022, in the Northern district of Georgia). The debtor’s address is 5671 Peachtree Dunwoody Rd, Atlanta, Georgia 30342-5000. Dentcorp has a robust website and a unique business model involving corporate dentistry called a Dental Service Organization (DSO). With a DSO, the dentist handles the clinical side of practice, while the company handles the corporate responsibilities, such as payroll, supplies, and staffing. More info: Garrett A. Nail of Portnoy Garner Nail LLC, Debtor’s counsel @ (404) 688-8800 or gnail@pgnlaw.com. Deal ID: 33793
- Padonia Village Pharmacy, LLC. Pharmacy. Chapter 7 Bankruptcy Filing Involving Companies With Significant Assets. Case number 1:22-bk-13162 (filed on June 9, 2022, in the District of Maryland, Judge Nancy V Alquist). The debtor’s address is 17 E Padonia Rd, Lutherville Timonium, Maryland 21093-2306. It is a privately owned pharmacy and drug store which provides individualized and holistic care to each of its patients. It has 23 ratings on Google resulting in a total of 5 stars. More info: Aryeh E. Stein of Meridian Law, LLC, Debtor’s counsel @ (443) 326-6011 or astein@meridianlawfirm.com. Deal ID: 33795
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Chapter 11 Bankruptcy - 363 Sales |
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- Zosano Pharma Corporation. Pharmaceutical company. Chapter 11 Bankruptcy Sale. In re Zosano Pharma Corporation. Case number 1:22-bk-10506. A motion to sell substantially all assets was filed on June 9, 2022, in the Central District of Delaware. The debtor’s address is 34790 Ardentech Ct, Fremont, California 94555-3657. The bidding deadline is July 18, 2022, at 4:00 pm local time. An auction, which will take place if there are 2 or more qualified bids, will take place 2 days after the bidding dealing, on July 20, 2022, at 10:00 am local time at the offices of Greenberg Traurig, LLP in The Nemours Building located at 1007 North Orange Street, Suite 1200, Wilmington, Delaware 19801. More info: Dennis A. Meloro of Greenberg Traurig, LLP, Debtor’s counsel @ (302) 661-7000 or melorod@gtlaw.com. Deal ID: 33787
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Exploring Strategic Alternatives / Out-of-Court Restructuring Action / Cash Constraints |
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- NewAge, Inc. (NASDAQ: NBEV) Health products company. Exploring Strategic Alternatives. On June 8, 2022, NBEV announced that its board began the process of exploring strategic alternatives in order to increase value for the shareholders. In their evaluation, NBEV will consider a full range of strategic alternatives including available financing alternatives, a potential financial restructuring or a reorganization, merger, sale, or other strategic transaction. NBEV has retained Houlihan Lokey as its financial advisors to assist with the strategic review process. NBEV also has enlisted Lawrence Perkins and SierraConstellation Partners, LLC to serve as restructuring officers and assist NBEV with preparation of financial information, stakeholder communication and evaluation of cash flow generation capabilities in anticipation of the strategic review process. On June 8, 2022, NBEV closed at $0.42. NBEV has a 52-week high of $2.57 and a 52-week low of $0.26. Deal ID: 33746
- Zendesk, Inc. (NYSE: ZEN). Software company. Exploring Strategic Alternatives. On June 9, 2022, ZEN announced that it reviewed potential strategic maneuvers to maximize stockholder value. ZEN enlisted the aid of Qatalyst Partners and Goldman Sachs & Co to assist with financials and Wachtell, Lipton, Rosen & Katz to help with the legal side. The strategy review included a wide range of different ideas and tactics including seeking interested potential strategic partners as well as exploring a potential sale of the company. Despite some parties interested in entertaining partnership or acquisition, no actionable proposals were submitted, and the once-interested parties eventually cited financial troubles or unfortunate market conditions as a reason to back out. ZEN’s Board of Directors ultimately decided that continuing operations and execution of the firm as a public and independent company and focusing on growth and innovation is what is in the best interest of stockholders. On June 10, 2022, ZEN closed at $64.98. ZEN has a 52 week high of $153.43 and a 52 week low of $58.03. Deal ID: 33800
- Western Digital Corporation (NASDAQ: WDC) Technology company. Exploring Strategic Alternatives. On June 7, 2022, WDC announced that it will be reviewing potential strategic alternatives to increase shareholder value. Some of the mentioned strategic alternatives being considered are to separate their HDD and Flash franchises. This strategic review is after the WDC board had multiple discussions with its shareholders including its largest investor, Elliott Investment Management L.P. WDC and Elliott have both signed NDAs and a letter of agreement during the strategic review process that will be filed with the SEC. Qatalyst Partners and Lazard are serving as WDC’s financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP is serving as WDC’s legal counsel. On June 8, 2022, WDC closed at $57.82. WDC had a 52-week high of $77.47 and a 52-week low of $43.85. Deal ID: 33748
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- Pleasant Manor. Healthcare and social assistance. Facility Closings. Pleasant Manor is permanently closing its facility located in Faribault, Minnesota. Approximately 20 employees will be laid off on June 15, 2022. Deal ID: 33773
- Parkdale Mills. Yarn manufacturer. Facility Closings. Parkdale Mills is permanently closing its facility located in Alexander City, Alabama. Approximately 113 employees will be laid off on July 24, 2022. Deal ID: 33762
- Insurance Auto Auctions, Inc. Auctioneer. Facility Closings. Insurance Auto Auctions, Inc. is permanently closing its 7131 Virginia Manor Court facility located in Laurel, Maryland 20707. Approximately 7 employees will be laid off on August 5, 2022. Deal ID: 33764
- Coram, CVS Speciality Infusion Services. Medical clinic. Facility Closings. Coram, CVS Speciality Infusion Services is permanently closing its 48-23 55th Avenue facility located in Maspeth, New York 11378. Approximately 138 employees will be laid off on September 18, 2022 and an additional 70 employees will be laid off at the 12 Jupiter Lane facility located in Albany, New York 12205. Deal ID: 33778
- Randolph’s Bakery. Bakery. Facility Closings. On June 8, 2022, Randolph's Bakery announced that it would be closing its location at 300 E Greentree Rd, Marlton, New Jersey 08053 on June 19, 2022. The bakery is a local legend, with 218 Google reviews resulting in a 4.5 star rating and a large following of disappointed locals. There is another location at Maple Shade, New Jersey, that will remain open. Deal ID: 33750
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- Likewize Us, LLC. Technology insurance. Mass Layoffs. Likewise Us, LLC is eliminating 61 positions at its 1950 USG Drive facility in Libertyville, Illinois 60048. Layoffs will begin on July 1, 2022. Deal ID: 33765
- Brother James Court. Non-profit organization. Mass Layoffs. Brother James Court is eliminating 100 positions at its 2508 Saint James Road facility in Springfield, Illinois 62707. Layoffs will begin on August 30, 2022. Deal ID: 33766
- Siemens. Automation company. Mass Layoffs. Siemens is eliminating 92 positions at its 1000 Commerce Street facility in Hutchinson, Kansas 67501. Layoffs will begin on June 30, 2022. Deal ID: 33767
- SSB Manufacturing Company. Mattress manufacturer. Mass Layoffs. SSB Manufacturing Company is eliminating 70 positions at its 7910 Hedge Lane Terrace facility in Lenexa, Kansas 66227. Layoffs will begin on July 1, 2022. Deal ID: 33768
- ABM Industry Group, LLC. Facility management provider. Mass Layoffs. ABM Industry Group, LLC is eliminating 69 positions at its 633 Research Drive facility in Frederick, Maryland 21703. Layoffs will begin on August 1, 2022. Deal ID: 33769
- Leed Selling Tools Corp. Commercial printer. Mass Layoffs. Leed Selling Tools Corp and Leed Logistics LLC is eliminating 81 positions at its facilities located at 5312 W Center Street, Ireland Indiana 47545 and 9700 Highway 57 North, Evansville, Indiana 47725. Layoffs will begin on July 31, 2022. Deal ID: 33774
- Berenberg Capital Markets, LLC. Bank. Mass Layoffs. Berenberg Capital Markets, LLC is eliminating 47 positions at its 1251 Avenue facility in New York City, New York 10020. Layoffs will begin on September 6, 2022. Deal ID: 33779
- First Bank/Real Genius. Mortgage lender. Mass Layoffs. First Bank/Real Genius is eliminating 74 positions at its 500 E Moorehead St. Suite 550 facility in Charlotte, North Carolina 28202. Layoffs will begin on July 15, 2022. Deal ID: 33780
- Glenmark Monroe. Pharmaceutical company. Mass Layoffs. Glenmark Monroe is eliminating 76 positions at its 4147 Goldmine Road facility in Monroe, North Carolina 28110. Layoffs will begin on August 1, 2022. Deal ID: 33781
- Wyndham Capital Mortgage. Mortgage company. Mass Layoffs. Wyndham Capital Mortgage is eliminating 48 positions at its 4064 Colony Road facility in Charlotte, North Carolina 28211. Layoffs will begin on August 1, 2022. Deal ID: 33782
- Neovia Logistics Services, LLC. Logistics company. Mass Layoffs. Neovia Logistics Services, LLC is eliminating 98 positions at its 2382 Route 715 facility in Tannersville, Pennsylvania 18372. Layoffs will begin on July 29, 2022. Deal ID: 33783
- Dutchie Marijuana company. Mass Layoffs. Dutchie, a marijuana tech company out of Bend, OR, is laying off approximately 8% of its workforce, a total of 67 employees the week on June 6, 2022. Deal ID: 33752
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Rating Agency Alerts/Going Concern Opinions/Stock Market Delisting/Other Signs of Potential Distress OR Upside Alpha Opportunity™ |
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- Windtree Therapeutics (NASDAQ: WINT). Biotech company. Stock Market Delisting. On June 3, 2022, WINT received a letter from NASDAQ indicating that the bid price of its stock had closed below $1.00 per share for 30 consecutive business days and is therefore not in compliance with NASDAQ regulation. In order to regain compliance, WINT will need to have at least 10 consecutive days with a stock price above $1.00. On June 10, 2022, WINT closed at $0.46. WINT has a 52-week high of $2.56 and a 52-week low of $0.42. Deal ID: 33799
- Bird Global Inc (NYSE: BRDS) Transportation company. Other Signs of Potential Distress. BRDS announced this last week of June 6, 2022, that it will be reducing third-party spending as well as laying off 23% of its employees. Bird has around 600 employees which means BRDS is planning on laying off around 138 workers throughout this next quarter. This is not the first time BRDS has had to have a mass layoff. In 2020, due to the Covid-19 pandemic, it laid off over 400 employees. The move is an attempt to stay solvent and remain profitable. A statement made by the company said the following, “This path required us to reduce our cost structure in a way that allows us to responsibly and sustainably expand our service(s)”. On June 8, 2022, BRDS closed at $0.70. BRDS 52-week high was $11.25 and its 52-week low was $0.62. Deal ID: 33755
- Digital Brands Group, Inc (NASDAQ: DBGI). Brand development company. Stock Market Delisting. On May 31, 2022, DGBI received a letter from NASDAQ indicating that the bid price of its stock had closed below $1.00 per share for 30 consecutive business days and is therefore not in compliance with NASDAQ regulation. In order to regain compliance, DBGI will need to have at least 10 consecutive days with a stock price above $1.00. On June 8, 2022, DBGI closed at $0.17. DBGI has a 52-week high of $8.80 and a 52-week low of $0.16. Deal ID: 33756
- Alpine 4 Holdings Inc (NASDAQ: ALPP) Holding company. Stock Market Delisting. On June 2, 2022, ALPP received a letter from NASDAQ indicating that the bid price of its stock had closed below $1.00 per share for 30 consecutive business days and is therefore not in compliance with NASDAQ regulation. In order to regain compliance, ALPP will need to have at least 10 consecutive days with a stock price above $1.00. On June 8, 2022, ALPP closed at $0.68. ALPP has a 52-week high of $5.74 and a 52-week low of $0.62. Deal ID: 33758
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- DJT St. Charles, LLC and CAT St. Charles, LLC. Bank. Receivership Sale. The sale of the mortgaged premises is July 7, 2022 at 10:00 am CST. The 5,999 SF former bank is located at 150 Kirk Rd, Saint Charles, IL 60174. More info: Anna S. Morrissey, Esquire of Dinsmore & Shohl LLP located at 222 W. Adams Street, Suite 3400, Chicago, IL 60606 @ (312) 837-4336 or anna.morrissey@dinsmore.com. Deal ID: 33805
- Memphis Capital, LLC. Residential property. Receivership Sale. The sale of the property is on July 1, 2022 at 12:00 pm local time at the Shelby County Courthouse. The 2,062 SF residential four-bedroom property is located at 1663 Lawrence Avenue, Memphis TN 38112, and is estimated by Zillow to be worth $320,400. More info: Tennessee Receivership Group, Receiver or Vincent Sawyer @ (901) 830-5353 or vincent@npimemphis.org. Deal ID: 33826
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(including Article 9 sales, commercial real estate foreclosure sales, residential real estate foreclosure sales, sheriff’s sales, tax sales, warehouse lien sales) |
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- 53 Marbella, San Clemente, California 92673. Trustee Sale. Public Auction is at 12:00 pm EST on June 23, 2022 at the North front entrance to the County Courthouse, 700 Civic Center Drive West, Santa Ana, California 92701. The property is a four-bedroom and five-bathroom, 4,410 SF home, estimated by Zillow to be worth $3,400,700. MTC Financial Inc. d/b/a Trustee Corps is the Trustee. More info: Loan Quema of MTC Financial Inc. d/b/a Trustee Corp TS No. CA15000014-21-2 @ (949) 252-8300. Deal ID: 33770
- 6363 S Grape Ct, Centennial, Colorado 80121. Residential Foreclosure Sale. Public Auction is at 10:00 am EST on June 30, 2022 at the Sheriff’s Office of the County of Arapahoe, State of Colorado. The property is a two-bedroom and three-bathroom, 1,598 SF home, estimated by Zillow to be worth $542,600. More info: Kate M. Leason of Altitude Community Law P.C. @ (720) 874-3845. Deal ID: 33803
- 1400-1900 Imperial PV, LLC. Condominium complex. Article 9/Secured Party Sale of Assets. The sale includes real property located at 1800 Ave at Port Imperial Weehawken, New Jersey. A public auction will be held online on June 29, 2022 at 11:00 am local time. More info: Brock Cannon, Secured Party’s Broker @ brock.cannon@nmrk.com or (212) 372-2066. Deal ID: 33806
- Woodcliff Gardens Owners, Inc. Gardening company. Article 9/Secured Party Sale of Assets. The sale includes all shares of Woodcliff Gardens Owners, Inc. leases, stock powers, assignments of leases, agreements, instruments, and documents representing the debtors' interest in 8600 Boulevard E. APT 2G North Bergen, New Jersey 07047. The property is a one-bedroom apartment estimated by Zillow to be worth $109,900. A public auction will be held on July 6, 2022 at 2:30 pm local time at 130 Clinton Rd, Suite 202, Fairfield, New Jersey 07004. More info: Steven D. Krol Esq. of Robertson, Anschutz, Schneid, Crane & Partners, PLLC, Attorneys for Secured Party @ (973) 575-0707. Deal ID: 33827
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Upside Alpha Opportunity? - Buy, Sell, or Hold Recommendation Issued |
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1. Volta Inc. (NYSE: VLTA)
DailyDAC initiated coverage of VLTA on May 16, 2022 as ID #33483. The stock price at the end of the prior trading day was $2.30.
Recent Events
VLTA announced on March 13, 2022 that it had substantial doubt regarding its ability to continue as a going concern over the next 12 months, stating that it will need to secure additional funding or will be forced to “significantly curtail its operations, modify strategic plans and/or dispose of certain operations or assets.” On the trading day immediately prior to this announcement (March 11), VLTA closed at $4.32. It closed at $4.03 on March 14 (the first trading day after the announcement).
VLTA announced on March 28 that its co-founders Scott Mercer (CEO) and Chris Wendel (President) were both stepping down and resigning their board seats. Some analysts pointed to this as a quite negative event, as key executive departures often are. However, we view it as a positive step by an active board of directors to turn the company around.
By May 11 it closed at $1.78. On May 13, it released its Q1 financial results (you can read the press release here and the full 10-Q here). Some of the key takeaways are as of the end of Q1 2022 (March 31):
Overall Q1 revenue increased 77% year-over-year, to $8.4 million.
Media (behavior and commerce) revenue increased 73% year-over-year to $6.1 million.
Full-year 2022 revenue is estimated at $70 million to $80 million.
Since May 13, VLTA recovered slightly and has been trading in the narrow range of about $2.20 to $2.40. On the trading day immediately prior to this recommendation, VLTA closed near the bottom end of this range, at $2.21.
For the year ended December 31, 2021, VLTA incurred a net loss of $276.6 million and had negative cash flows from operating activities of $93.3 million. VLTA had $262.3 million of cash as of December 31, 2021. Page 78 of the company’s December 31, 2022 10-K provides more information. As of March 31, 2022, cash stood at $205.4 million. The company will need to raise cash, of course, as its March 22 announcement made clear. The questions are whether it can do so and whether it can do so in a way that is neither unduly dilutive to shareholders nor on terms that would put the company at material risk of default of those terms. We think the answer to both questions, considering its current stock price, is yes.
VLTA’s Business
VLTA owns, operates, and maintains electric vehicle (“EV”) charging stations. Its content delivery activities for its media and advertising partners are a significant component of its business. VLTA typically leases space from real estate and retail partners and other site hosts to place its content-driven EV charging stations nearby site entrances, which are highly visible to passersby, creating a platform for brands and commercial partners to deliver their media content.
VLTA also sells content-driven EV charging stations to certain business partners and continues to perform the related installation, operation and maintenance services, while retaining the exclusive right to sell media display time on the media-enabled charging stations for the duration of the contract term.
As of December 31, 2021, VLTA had a network 2,264 chargers across 23 states and territories that generated over 210,000 estimated charging sessions per month on average for the year ended December 31, 2021, forming one of the most utilized charging networks in the United States on a station-by-station basis. Additionally, in 2021, VLTA expanded its international footprint, opening offices in Paris, France, Berlin, Germany, and Montreal, Canada, and commenced the installation of its first stations in Europe.
The EV Industry
The industry as a whole, of course, is enjoying huge headwinds, due to macro-economic, national security, and environmental reasons.
On June 9, for example, U.S. Department of Transportation’s Federal Highway Administration announced a Notice of Proposed Rulemaking (NPRM) on proposed minimum standards and requirements for projects funded under the National Electric Vehicle Infrastructure (NEVI) Formula Program. This is the latest step in furthering the Biden Administration’s commitment to jump start the construction of a national network of 500,000 EV chargers by 2030.
The news follows the February 10 announcement of nearly $5 billion that will be made available to states over the next five years under the new NEVI Formula Program, established by President Biden’s Bipartisan Infrastructure Law, to build out a national EV charging network.
Recommendation
DailyDAC issues a BUY recommendation on and as of June 13, 2022 (with VLTA having closed on the prior trading day at $2.21 and trading at about $1.72 as of the time of this recommendation). Deal ID: 33802
2. View, Inc. (NASDAQ: VIEW)
DailyDAC initiated coverage of VIEW on March 8, 2022 as ID #32598. The stock price at the end of the prior trading day was $1.81.
VIEW’s stock price hit its all-time high of $12.49 on January 15, 2021, a few months after its October 2020 IPO, and has bounced much more down than up since then.
We began our coverage of VIEW shortly after Nasdaq issued a delisting notice, dated February 22, 2022, because VIEW had failed to file its quarterly reports on Form 10-Q for two quarters in 2021. Nasdaq again, on May 13, 2022, issued a delisting notice to VIEW for failing to file its annual report (for the year ending December 31, 2021) and its first quarterly report of 2022. Having applied for and been granted extensions, VIEW finally filed the reports on May 31, 2022.
View, Inc., is a leader in smart building technologies. Its flagship product is smart windows, which use artificial intelligence to automatically adjust the amount of sunlight that permeates the electrochromic glass panels, similar to adjustable-tint sunglasses, which can be programmed to achieve optimal levels of natural light and energy conservation. The windows also reduce glare (to improve worker productivity) and UV radiation (for health benefits), and eliminate the need for blinds. VIEW smart windows are capable of blocking 90% of solar radiation from entering a building. In addition, in 2021 VIEW launched View Immersive Experiences, a transparent, digital interactive surface that incorporates see-through, high-definition displays into its smart windows. View smart windows (with and without immersive experiences) are installed in more than 90 million square feet of offices, hospitals, airports, schools, hotels, and multi-family residences.
VIEW’s newer product, developed in 2021, is the Smart Building Platform which regulates a structure’s power, cloud-managed networking, and communications infrastructure, with data analytics and security functions.
VIEW’s website provides links to independent studies and research that support the company’s claims about the health benefits, energy efficiency, and workplace productivity achieved by using its products. The website does not provide links to any dissenting or competing studies or research, if any exist.
VIEW’s biggest competitors in building products are Griffon, Gibraltar Industries, and PGT Innovations. Its biggest competitor in smart building technology is IBM.
Quantities
VIEW’s total revenue for 2021 was $74 million, up 125% over 2020. But its 2021 net loss was $343 million (its net loss for 2020 was $250 million). Thanks to its exquisitely timed IPO in October 2020, VIEW is still well capitalized (with a market cap of $328 million) and has more cash ($281 million at the end of 2021) than total liabilities ($199.7 million). The current ratio is 12.8. Its impressive net cash flow in 2021 -- $222.9 million – came largely from financing activities, mainly a reverse recapitalization and PIPE financing.
Growth outlook
VIEW is positioned to exploit a key secular trend, as CEO Rao Mulpuri pointed out in an earnings call on May 31, 2022 (with participants from Raymond James and Goldman Sachs). “Buildings consume 40% of energy and are a major contributor to climate change,” Mulpuri said. “Real estate, the largest asset class in the world, is going through a once-in-a-lifetime transformation,” driven by the need for energy efficiency and energy security. VIEW spent $93 million in R&D in 2021, a 36% increase from 2020, and continues to invest in next-generation smart building technology.
Mulpuri forecasts a smaller revenue jump in 2022, 35% to 50% over 2021, and a “temporary slowdown in acquiring new customers” thanks to the earlier delisting risk. With that risk behind them, Mulpuri expects to resume much higher growth rates in 2023 and beyond.
Mulpuri’s long-term optimism should be tempered by the slowdown in commercial real estate construction starts, thanks to Covid-induced remote working, and headwinds related to a looming recession. For that reason, DailyDAC issues a HOLD recommendation on and as of June 13, 2022. At the close of trading on the day immediately prior to June 13, it closed at $2.31 and is trading at about $2.00 as of the time of this recommendation). Deal ID: 33804
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