Mathieu Martin |

Espace MicroCaps End-of-Year 5to7 Cocktail Event

Espace MicroCaps is glad to invite you to its End-of-Year 5to7 Cocktail Event at the Bier Markt Montreal on Tuesday, November 29 at 5:00pm. Our quarterly events are the perfect occasion to network with likeminded investors while discovering new non-resources investment opportunities in the Canadian microcap space.

Where: Bier Markt Montreal, 1221 René-Lévesque W, Montreal

When: Tuesday, November 29 at 5:00pm (please arrive before 5:25pm for the first presentation)

Cost: FREE

The first 75 participants to register and to show up at the event before 5:25pm will receive a 10$ coupon for a free drink of their choice. Appetizers will be served during the cocktail as well.

To reserve your spot: Eventbrite: 5à7 – Cocktail de fin d’année Espace MicroCaps

The presenting companies have been hand-picked based on the attractiveness of their business model, market opportunity and fundamentals.

RenoWorks Software Inc. (TSX Venture : RW)

About: RenoWorks Software Inc. develops and sells a unique digital visualization software for the remodeling and new home construction industry. Delivered online and through mobile apps, Renoworks provides technology to manufacturers, contractors, remodelers, builders and retailers offering the solution to one of the home remodeling industry’s greatest challenges: enabling customers to see how their product choices will look in a realistic, virtual environment – even in their own home – before they make a purchase decision. Renoworks markets its software as a cost-effective lead generation tool and generates revenues from three main business lines: Enterprise, Renoworks PRO™, and its Software Development Kit, Renoworks SDK™.

The opportunity: RenoWorks’ sales started to accelerate this year after the company launched Renoworks PRO™, a new tool for contractors and remodelers they are selling on a Software-as-a-Service (SaaS) model, thus generating increased monthly recurring revenues. RenoWorks has a lot of the ingredients we are looking for in a great business: cash flow positive, revenue growth in excess of 20%, more than 50% of revenues are recurring, high gross margins (75%+), high insider ownership (57%) and attractive future growth perspectives. 2017 should be an exciting year for RenoWorks Software both from a business and a product development standpoint.

Hempco Food and Fiber Inc. (TSX Venture : HEMP)

About: Hempco is a family run business with over 14 years of experience and dedication to pioneering and innovating processes and products in the hemp seed industry. Hempco is in the business of processing hemp seeds into 4 main products: hemp seed oil, hemp seed nut, hemp seed protein powder and hemp seed shells. Hempco sells these products in bulk in the USA and Canada as well as in Europe, Asia and Mexico. Hempco is also in the business of distributing hemp-based consumer packaged natural health products for retail sales under the brand PlanetHemp.

The opportunity: High quality hemp-based food products are in high demand worldwide, especially in Asia, and Hempco is in the right spot to capitalize on this opportunity. This year, the company landed a significant distribution contract in South Korea and reported 35% revenue growth (unaudited) for fiscal 2016. Hempco recently upgraded its manufacturing facility in Manitoba to accommodate the growing volume of orders, and is setting up a brand new facility in Alberta to position itself for more growth. The company also launched its own line of consumer packaged hemp-based products in Canada and the UK, under the brand PlanetHemp. With strong sales growth expected for fiscal 2017, Hempco will be a stock to watch.

RepliCel Life Sciences Inc. (TSX Venture : RP)

About: RepliCel is a regenerative medicine company focused on developing autologous cell therapies that address conditions caused by a deficit of healthy cells required for normal healing and function. The Company’s product pipeline is comprised of two ongoing clinical trials (RCT-01: tendon repair and RCS-01: skin rejuvenation) as well as its RCH-01: hair restoration product under exclusive license by Shiseido Company for certain Asian countries. All product candidates are based on RepliCel’s innovative technology, utilizing cell populations isolated from a patient’s healthy hair follicles. The Company has also developed a proprietary injection device (RCI-02) optimized for the administration of its products and licensable for use with other dermatology applications.

The opportunity: RepliCel recently completed a private placement for gross proceeds of $4.26M at a pre-money valuation of $3.35M, a financing in which Philippe took part. Startups often get similar valuations with only an idea and a management team, here we are talking about a biotech that already spent over $20M in R&D and has 4 shots on goal: three autologous therapies (RCT-01, RCS-01 and RCH-01) and a medical device (RCI-02), which should get approved for commercialization in Europe at the end of 2017. It’s difficult to use the term value investing in the case of a pre-revenue biotech, but you can sometimes see Philippe venture in this sector when the opportunity is too good to pass.

We look forward to seeing you on November 29.

Philippe and Mathieu

Disclosure: Philippe and Mathieu own shares of RenoWorks Software. Philippe owns shares of RepliCel Life Sciences.