GEO Investing

Millennium Investment & Acquisition Company Inc. (OTC:MILC) ($5.55, $60.8M market cap), President Jared Schrader was our guest on September 16, 2021, to engage in a fireside chat that includes our normal format of conversation and Q&A. Below is a brief summary of coverage and introduction to MILC.

MILC has been operating as a non-diversified, closed-end investment company. However, the company is in the process of terminating this designation.

The company’s main focus will be on operating cannabis cultivation facilities through lease agreements on land owned by Power REIT (MD) (NYSE AMEX:PW).

As we have stated before, we are becoming really excited about this company’s new cannabis focused business direction. On September 10, 2021 we mentioned shares jumped on a press release stating that the company entered into a long term lease agreement with Power REIT  for a 556,146 square foot greenhouse cultivation facility. The Michigan cannabis market is the second largest market, second only to California. The company also has agreements with PW in Colorado and Oklahoma.

The company also provided an investor presentation which has fiscal 2022 and 2023 revenue and annual profit projections. The company expects sales of $14.4 million and $54.7 million with annual profits of $6.2 and $35.0 million, respectively. The company has 10.9 million shares outstanding and it is our belief that it won’t need to raise significant capital to fund its near-term goals.

We still need to understand the story a little better to construct some valuation ratios, but we could see a scenario where shares could trade between $10.00 and $15.00 on 2022 financial estimates.

See our full note including some possible caveats associated with the story here.


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