(OTC:
$HIPH) - SeeThruEquity Equity Research for American Premium Water
Corp. - Target Price of $0.15
“We
expect $HIPH growth to be supported by two commercial initiatives planned for
this year: Hydrogen-infused Water and Hydrogen #CBD-infused Water.”
New
York, NY - June 22, 2018 (Investorideas.com Newswire) American Premium Water
Corp. (OTC: HIPH)
analyst coverage: SeeThruEquity, a leading independent equity research
and corporate access firm focused on smallcap and microcap public companies,
today announced it has initiated coverage on American Premium Water Corp. with
a Target Price of $0.15.
We
initiate coverage on American Premium Water Corp. (OTC: HIPH, $0.020) with a
price target of $0.15. HIPH is a diversified company focused on premium
consumer brands and products. It currently sells and markets hydrogen-infused
water under the LALPINATM brand and luxury apparel under the Gents
brand. We expect HIPH growth to be supported by two commercial initiatives
planned for this year: Hydrogen-infused Water and Hydrogen CBD-infused Water. Both
product lines have high potential given: 1) the rising consumer interest in
legal CBD products; and 2) the large and expanding market for functional water.
LALPINATM Hydrogen is already selling
via select channels, and the company is planning for a full-scale launch in the
coming quarters. The Company debuted the LALPINATM Hydrogen CBD
prototype in January 2018 and is expected to be launched in June 2018. The
functional bottled water market in the US is expected to reach ~$2.9 billion by
2020 driven by a shift in consumer preference from soda-based to more
nutritional and healthier drinks. This is evident from the rising demand of
seltzer water, ionized water and smart water, among others. Hydrogen-infused
water has the potential to become a new category in this trend. HIPH has an
early mover advantage in the hydrogen infused water market which currently has
limited competition.
LALPINA Hydrogen CBD positions the company to tap
into growing consumer interest around CBD related products as this is the only
known Hydrogen CBD water in the market.
There is a large market opportunity given the
growing number of cannabis dispensaries which could be potential customers.
We are also intrigued by management’s effort to
position Gents as an emerging luxury apparel brand. The recent acquisition of
Worthy, a JV with China-based Zhangjiagang Advanced Company (ZAC), and
collaborations with Showtime and SoulCycle should help expand footprint and
consumer reach. HIPH has also entered the fast growing blockchain space via the
acquisition of FashionCoinX, which further diversifies its potential revenue
streams. HIPH noted a number of acquisition opportunities in the pipeline – all
of which could further support growth. Going forward, we expect HIPH to
increase revenues and earnings via new product launches, aggressive
distribution and marketing, entry into new regions and M&A.
Well positioned as a luxury consumer lifestyle brand
HIPH manufactures and distributes consumer products under the LALPINATM
and Gents brands.
The LALPINATM brand focuses on hydrogen infused bottled water via
its two products: LALPINATM Hydrogen (launched in 1Q18)
and LALPINATM Hydrogen CBD (to be launched in June 2018). The bottled water market with functional benefits such as added
alkalinity, electrolytes, vitamins, minerals is seeing significant traction
among consumers. The shift in consumer preference to healthier and nutritional
drinks is likely to further drive the growth of functional water market. The
functional bottled water market in the US is expected to reach ~$2.9 billion by
2020. HIPH has an early mover advantage in the hydrogen infused water market
which currently has limited competition. LALPINATM Hydrogen CBD is a
front runner in the space as the only known hydrogen infused CBD beverage
available on the market. The primary competitive advantage is that it improves
bioavailability of CBD and absorption. The CBD market could reach $2.1 billion
by 2020, according to Hemp Business Journal.
Gents is a producer of luxury hats and other fine
accessories and apparel. Presence in 200 retail outlets internationally
including upscale names such as Bloomingdale’s, Nordstrom, and Saks Fifth
Avenue strengthens its positions as a luxury brand. The acquisition of New
York-based streetwear brand, Worthy further diversifies the apparel revenue
stream. It will expand the price points offered by Gents and opens up many new
distribution channels.
Expansion in blockchain/crypto space
The recent acquisition of FashionCoinX marks HIPH’s
entry in the fast growing blockchain/crypto space. Blockchain is one of the
fastest growing technologies and entry in the space should benefit HIPH. According
to Market Reports Center, the size of the blockchain industry will grow to
$60.7 billion by the year 2024. HIPH is looking for more opportunities in the
blockchain/crypto space that will complement its existing LALPINATM
and Gents brands.
Aggressive marketing push to drive topline
HIPH plans to enter into partnerships and
collaborations to increase distribution and marketing reach. The JV with
China-based Zhangjiagang Advanced Company and collaborations with Showtime
drama ‘Billions’ and fitness chain SoulCycle should help expand Gents footprint
and consumer reach. Further, LALPINA’s distribution agreement with GNC, one of
the world’s largest vendors of health and nutritional products, is likely to
result in strong order flow. The management noted that it is working on several
more distribution partnerships for both brands which should further bolster the
topline.
Initiate coverage with a price target of $0.15
We see HIPH as a high risk and high reward consumer
brand play. The target of $0.15 assumes that the company is successful in
executing its organic and inorganic growth revolving around product expansion,
strategic partnerships and M&A. Key risks include inability to raise
capital for its growth initiatives and delay in the launch of LALPINATM
Hydrogen CBD.
About American Premium Water Corp.
HIPH
is a manufacturer, distributor, and marketer of branded consumer products. It
currently markets and distributes products under LALPINATM and Gents
brands. Under the LALPINATM brand, the company develops
hydrogen-infused energy products. Currently, the product line includes – 1)
LALPINATM Hydrogen and 2) LALPINATM Hydrogen CBD. Gents
is a producer of luxury hats and other fine accessories and apparel. The brand
is carried in over 200 retail outlets internationally, including
Bloomingdale’s, Nordstrom, and Saks Fifth Avenue, among other boutiques and
upscale retailers. For more information, visit www.americanpremiumwater.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.
SeeThruEquity
is approved to contribute its research reports and estimates to Thomson One
Analytics (First Call), the leading estimates platform on Wall Street, as well
as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most
extensive databases of opt-in institutional and high net worth investors. The
firm is headquartered in Midtown Manhattan in New York City.
Contact:
SeeThruEquity
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