 Hey guys, how you doing? This is your boy Rich from Rich TV Live and we have another potential winning pick for you today, Ecom. That's right. Ecom, E-C-O-M. Put on your radar, put on your watches. We love to bring you the winners and we love to bring them to you first. I have not seen another person talk about this company yet. I'm sure we're the first. Put them on your watch list. Put them on your radar. Let me know what you guys think about Ecom. Emerge Ecom. What do you guys think? Love to know what you guys think. If you like these videos, smash the like button, comment down below, share the video everywhere and subscribe. If you're live, let's get right into it. Let's take a look at this deal and let's tell you why we think they could be a big winner. All right. Here we go. Here we go. So right off the bat, what I want to do is I want to show you their website. It is www.emerge-commerce.com. You can learn more about Emerge by going to their site and learning about them under the ABOTA section, corporate governance section, learn about their leadership, board of directors, news and events. Keep up to date with all news and events and get stock info and financials for investors. So I really believe this is important for investors to be able to understand what's going on with companies to really do the due diligence. Emerge. We buy and build D2C e-commerce brands. Canada's fastest growing e-commerce network. Emerge. Ecom is a disciplined, diversified, growing acquire and operator of direct to consumer D2C brands across North America. Our e-commerce portfolio provides our members with access to premium meat, groceries, golf, outdoor goods, family offers, and escapes. Our portfolio houses some of most coveted online shopping destinations. Emerge was named as one of the fastest growing companies in Canada by startup 50 and the Globe of Males 2020, Canada's top growing companies. So you can see here some of the brands that Emerge owns and operates. Battle box, true local connecting you to the source under par.com, carnivore club, just golf stuff, wag jag and be right back.ca. You can also follow all of their latest news right on their website. You can see Emerge to host webcast on October 14th to discuss battle box group provides corporate update on acquired brands. So get up to date on all their latest news and the company is diversified, disciplined and high growth. You can see here 5,697% growth rate from 2016 to 2020 pro forma with 110 employees, seven brands, four verticals and two countries, disciplined, diversified and high growth. That's what you need to think about when you think of Emerge commerce. You can see their latest presentation and we will go through their PDF and all their latest news and events. You can also sign up and put in your email and submit for investor email alerts. And you can follow them on social media at LinkedIn. This is their LinkedIn page. You can follow them on Facebook. I'm following them everywhere here, following them on Facebook. You can follow them on Twitter. I'm also following them on Twitter and on Instagram. So one of the things that we think we do really well here is we really get to know companies intrinsically. We get to know everything about them. We get to know their news. We like to interview the companies to get to know who's behind the deals. We like to understand their financials. We like to understand their debt equity ratios, their assets, their liabilities if they have them, debts if they have them, money in the bank if they have them, and acquisitions if they're doing them. So we're all over it here with Emerge commerce. And you can see here some really big brands that Emerge owns and operates. So very, very key metrics that you need to understand. All right. Now what I wanted to do is also want to show you the chart. So you can see here that when Emerge commerce initially got started, they had a big move up. You can see here, big move up all the way up to the zone here, one time 174, another time about 171. Let's just say we'll call that zone the high high, right? We're going to call that zone the zone and this zone, the high high and the money zone. And then just recently, after that all time high, they just recently came down to an all time low, where we're going to call this the low low, or in in many opinions, the buy zone, right? We love to buy when they're low near the lows, and we love to sell near the highest. So this is what I'm looking at. And to me, this looks like it's literally doing a little trend reversal pattern here where it was trending down for quite some time. And now it's starting to reverse back up. So as a trader, we look for these situations where stocks go up, come down, and then as the company is growing in a volatile early stage company, you're going to see these big moves up, big moves down with the volatility of early stage companies. And then when they hit the bottom, you're going to see this turn up, and you'll see a trend reversal pattern. If this continues, this could be extremely bullish, and we could see it just take off from here. And if we got it back up to these higher levels, to go back from where we are right now, 79 cents back to $1.70 would be massive. You could see here the dip, the bottom was about 60 cents. So from 60 cents all the way to $1.70 is a nice big move there. You can use the ruler here and see if we pull this up. There's potentially, from that bottom, obviously we've come up from the bottom, but from the bottom, there's potentially about 188% upside. So incredible upside for e-merge commerce. All right, so right now I want to dive in to the e-merge e-com premium D2C e-commerce portfolio. This is their company pitch deck. And you can see here, we acquire and operate profitable e-commerce brands. So e-merge is a diversified acquire and operator of premium e-commerce brands across North America. e-merge acquires profitable growing niche market leaders in the trillion dollar e-commerce space and integrates these brands under one platform where they share teams, technology, and data. So let's just talk about some of the specifics. So you can see here the e-merge D2C e-commerce portfolio. And you can see the statistics here with some of the brands, EBITDA, revenue, brands, seven brands, four verticals, two countries, 77 million GMS, 57 million in revenue, and 4.8 million in adjusted EBITDA. You can see under experiences, they've got WagJag, BeRightBack.ca, under golf, they have underpar.com, and just golf stuff, under meat and grocery, they have True Local, Carnivore Club, and for outdoor gear, they've got Battlebox. So where do we play? So let's get a sense of e-merge's positioning within the explosive e-commerce landscape. So first of all, we all know that Amazon is a monster and is one of the biggest, most powerful companies in the world, a trillion dollar monster, all things all people store, not going anywhere anytime soon and not going away anytime soon. So on comes along Shopify, obviously we know Shopify, the number one business and pretty much the number one biggest success story in Canada for companies that are growing and having success and a technology company Shopify is one of the biggest and one of the best. So here comes along Shopify with the mission to power the little guy and allow them to conquer their niche without having to worry much about technology. Their motto is arm the rebels, then we enter emerge. So what is Emerge's focus here? We enter emerge and Emerge's focus, they sift through the ocean of profitable niche e-commerce businesses that Shopify powers and acquire Rockstar Rebels. So they're looking for the next Rockstar Rebel and they're looking for really the hidden gems, the best of the best. Emerge then integrates and accelerates these businesses, offering them support and saving unavailable and savings that are unavailable to any individual small e-commerce site on its own. This is why Emerge commerce is a game changer. All right, and let's take a look at slide number five here, the Battlebox strategic rationale. So Emerge acquired Battlebox Group on October 6, its largest and most profitable acquisition to date, adding two D2C subscription brands. You can see the revenue growth here, very, very substantial, very, very substantial, impressive revenue growth. So what is the strategic rationale? Earlier this month, Emerge acquired Battlebox Group, which includes Battlebox, the U.S. market leader in outdoor good subscriptions. So things like camping, hiking and survival gear, as well as Carnival Club and Artisanal Cured Meets subscription box. So Battlebox Group emerges sixth acquisition overall and second since going public in December 2020. They've also had 70% revenue growth in 2020 during the pandemic's peak and yet still healthy 30% growth in 2021 as of May. So very healthy underlying organic growth. Now, let's understand the strategic rationale here. So strategic rationale, highly strategic U.S. operating team capable of its own M&A mergers and acquisitions along with cost-effective facilities in the United States, strong synergy potential with other brands via cross-selling, logistic support and shared marketing. Premium reoccurring audience would mainstream brand appeal from Netflix original show, Southern Survival. So huge Netflix show, huge free customer acquisition play for Battlebox. So very, very, very big, big, big acquisition play for Battlebox. And Battlebox Group at a glance. Let's go to the next. Here you can see 23.5 million revenue, $613 customer lifetime value, $3.3 million in adjusted EBITDA, in American adjusted EBITDA, $71 customer acquisition cost, 13 employees, 3 million in yearly sessions, 78% repeat customers and 780,000 social media followers. This is a very tight team with only 13 employees, highly efficient profitable platform, unusually strong repeat customer rate, great indication that these customers are here to stay and favorable CLTV to CAC ratio. Indicating this model can scale up profitably with a strong audience and social community. So the transaction overview Emerge acquires a business for about four to six times EBITDA, very smart business model. The fact that they focus on acquiring profit versus revenue shows they have a disciplined capital allocation strategy. Battlebox transaction was structured very carefully. This is an expert merger and acquisition team that knows how to structure deals and align incentives. And we can go through the high level metrics. You can see here purchase price consideration, US $10.25 million in cash funded with cash on hand, US $1.5 million deferred cash considerations, and up to US $7.2 million contingent earn out consideration over three years. Earn out details, minimum revenue and EBITDA grow targets for three years. Earn out payable in 50% cash and 50% shares or cash at Emerge's discretion. All earn out shares if issued will be subject to 180 day lockout. Valuation guaranteed upfront cash and deferred cash portion represents 3.6 times EBITDA based on 12 months ending May 31st, 2021. Total purchase price of US $18.75 million represents 3.8 times EBITDA assumes three year earn out achieved. All right. And let's take a look at the pro forma profile. So as you can see, Battlebox and Carnivore Club acquisitions have led a transformative impact on Emerge's pro forma metrics. So you can see gross merchandise sales or GMS is now at 77 million, putting Emerge in striking distance of 100 million following the next acquisition. I'm telling you guys, this is a company that I believe is undervalued, underappreciated, underexposed. Imagine a company under a dollar that has a plan of growing to 100 million, 100 million in sales following the next acquisition, which is enormous, meaning in my opinion, they're grossly undervalued. This would be a major milestone and place Emerge in elite company in terms of e-commerce players. Revenue basically doubled from the acquisition to 57 million. Adjusted EBITDA is expected to be more than five times. Subscription revenue is now 79%. That's the stickier type of revenue. And so Emerge has really transformed its profile towards sticky, reoccurring revenue, a very desirable segment in e-commerce. And you can see all the statistics right here. Very impressive. Now, let's talk about the capital efficient acquisitions. So Emerge Playbook, and you guys know I love companies with a strong Playbook, is to acquire sticky e-commerce businesses in the one to five million EBITDA range for about four to six times EBITDA. Brilliant. They have been able to demonstrate this multiple times. So it's great to see a company executing with discipline on its stated Playbook. All right. And you can see analysts expect the pro form of business to eclipse 60 million in revenue and significantly expand Adjusted EBITDA to five million in 2022. So you can see the revenue growth and the adjusted EBITDA. Very impressive growth. And this is consensus estimates from Kanakor Genuity and Raymond James. Acquisition Playbook. Emerge has last reported that they have an acquisition pipeline over over 65 million in EBITDA. And you can see here's some of the track record of making a credit of acquisition and creating shareholder value. And you know that I'm always looking for companies to build shareholder equity and create shareholder value. I talk about it all the time. This is a company that falls right in place. So Emerge has last reported they have an acquisition pipeline of over 65 million in EBITDA with multiple signed LOIs. Here are some live acquisition profiles they share. You can see right here. The subscription box business that is lit up is actually Battlebox Group. Their most recent acquisition has just closed. So Battlebox Group is an absolute game changer for Emerge Commerce. Their most recent acquisition that just closed was huge. Interesting to see that these high growth industries that emerge is zoning in and zoning on. What is the major focus for Emerge? Pets, wellness, beauty, e-bikes, et cetera. Some of the hottest fastest growing sectors in the world. Also they love seeing and I love seeing these EBITDA figures before factoring in any synergies with Emerge. You can see the date range, price and share, gross proceeds, and primary use of proceeds for the anchor team and platform acquired, Wag Jag acquisition, under par, just golf stuff acquisition, Go Public plus true local acquisition and the Battlebox and Carnivore club. So very impressive numbers. Capital efficient acquisitions. So through a disciplined capital allocation strategy and proprietary pipeline, Emerge has established a premium e-commerce portfolio. You can see target criteria demonstrated market leadership position in niche e-commerce segment, healthy organic growth, exclusive reoccurring merchant relationships, target EBITDA of one to five million and target acquisition multiple of four to six times EBITDA. You can see cash at closing, 50%, Emerge shares 20% and deferred earn out at 30%. Now it's also important for Emerge to integrate. You can see the focuses, golf, grocery, meats, organic and health and wellness. Now, let's talk about the acquisition pipeline. And it's all about Emerge's ability to integrate. So once Emerge acquires an e-commerce business, they onboard it to a shared platform and playbook where Emerge basically takes care of all the pipes in the background, integrating vendor software solutions like email marketing, fraud, CRM, et cetera, and offering best in-class prices to its brands. Portfolio companies benefit from the economies of scale of a collective platform, saving them time and money while focusing on growing leadership positions in the respective niches. So you can see here some select acquisition target profiles, e-commerce niche, subscription portfolio, geography, GMS revenue and EBITDA. You can see the subscription portfolio of the U.S. and Canada, 28 GMS in revenue and EBITDA of four. You can see the pet's marketplace in the United States, GMS revenue of 50, EBITDA of three. Wellness and beauty in the United States and Canada, GMS revenue 40, EBITDA of four. Golf marketplace in the United States, GMS revenue 30, EBITDA of three, and e-bikes in the United States and Canada, GMS revenue 24, and EBITDA of five. So a focus on growing acquisition pipeline with multiple signed LOIs, large acquisition financing debt facility in the works, investment in mergers and acquisitions, headquarter team ahead of more aggressive scaling, and approximately two acquisitions away from 100 million revenue and 10 million in EBITDA. And you can see how they integrate with e-commerce and email service provider, Marketo, cloud hosting at AWS, working obviously integrating with Salesforce, customer relationship management, Zendesk, customer service, software, paid marketing with Google, Facebook, and Instagram. So you can see all of this here and cloud fair catching security. So Emerge also enhances e-commerce companies by providing cross-selling opportunities with other brands. For example, if you play golf, you may also be interested in sky. If you buy meat, you may also be interested in wine. Portfolio brands also get the benefit of a dedicated M&A team at Emerge that supports all of their efforts, something most small e-commerce companies don't have the capacity to invest in or the know how. Other ways Emerge accelerates brands is by leveraging their advertising and data network to monetize traffic. So you can see here also SIF science, fraud prevention solution, link share, pepper jam, affiliate partners, and in-house and agencies, marketing and business intelligence. You can see these portfolio companies benefit from the economies of scale of a collective platform while focusing on growing leadership positions in the respective niches. So Emerge platforms offers a one-stop solution to all portfolio companies, consolidate back office functions to corporate human resource, customer service payroll and accounting, and pre-negotiated group pricing for key e-commerce software. So Emerge has had a strong track record of continuously enhancing shareholder value by acquiring larger and more profitable e-commerce businesses at every juncture. This is a company that has raised 31 million plus in equity and built a 77 million gross sales business that has a highly efficient ratio in the e-commerce space. Emerge understands the power of accredited acquisitions and adds scale and profitability and has proven to only raise capital when it is a very specific purpose for it, which is huge. We don't want to dilute the stock and you don't want to raise too much money. What you want to do is you want to raise money and then use those proceeds to either put on the balance sheet to grow your balance sheet or to acquire assets, which is what Emerge commerce is doing. So you can see how they accelerate using cross-selling, advertising and data, margin enhancement, founder network, market expansion, and mergers and acquisitions. Emerge offers portfolio companies extensive reach, expertise, and relationships to accelerate their business to the next level. Reach, 2 million plus members and growing, huge community of 2 million plus members, expertise, scaling the business organically and inorganically, and network proprietary relationships and partnerships. Okay, so let's talk about the consensus forecast. There is a consensus forecast, KanaCorp Genuity and Raymond James currently cover Emerge with consensus target of $1.77. So huge consensus forecast of $1.77 and you can see here their leadership team and $1.77 versus a share price, which is currently under $1. So tremendous upside from today's prices. As you can see, Emerge doubled its revenue 2020 to $9 million from $4.5 million in 2019 and is expected to almost four times the revenue in 2021. That is a very impressive growth. In 2020 was its first adjusted EBITDA positive year, a huge milestone for the company and that trend is expected to continue. And let's expect that the company to eclipse $60 million in revenue and $5 million in EBITDA in 2022. If Emerge pulls off acquisitions, these numbers can easily be exceeded. Now let's talk a little bit about the Emerge leadership team and capitalization. So very, very impressive team, Emerge went public at 75 cents in December 2020. So they're sitting at slightly above the listing price, despite them being on track to grow the company four times since then. They have a tight clean cap table. Insider ownership is around 30 to 35 percent, which is healthy. Management and board have never sold a single share. Gassan Halazon, the founder and CEO is a veteran e-commerce entrepreneur with north of a decade of experience scaling Canadian e-commerce brand. He surrounded himself with a team of veteran capital markets, mergers and acquisition and technology folks that have come with multi-billion-dollar organizations like Well Health, Aphria, Die, and Derm, et cetera. So you can here see the leadership team, very impressive team with lots of experience. So this is Emerge at scale. So you can see here Emerge at scale. It's still in the early days for Emerge, the goal is to build a constellation software of e-commerce brands. You can imagine where this could go as they bulk up these verticals with more acquisitions and new categories. They're approaching $100 million in gross sales, but e-commerce is a $4 trillion market. If they keep acquiring quality brands and remain disciplined, this could be a very large profitable business. And we love finding profitable businesses. First, as you could see, this is just the building. This is just the beginning for e-merge commerce. A company that I believe is undervalued, underappreciated, underexposed, love to know what you guys think. Comment down the video. Let me know your opinion on e-merge commerce. Do you think it's a big winner? Do you think the upside is tremendous? I do. And I love to know what you guys think. Thank you guys for watching. If you're not winning, you're not watching, we bring you the winners and we bring them to you first. We bring you e-merge commerce first. And I think the upside is tremendous. Thank you for watching, everybody. We'll talk to you soon.