Subject: Smallcap Discoveries: Weekly Update October 19th to 23rd

Smallcap Discoveries:

Weekly Update October 19th to 23rd
Our next pick will be announced tomorrow AM: Pre-market at 6AM (PST) - Stay Tuned!

Smallcap Discoveries Select Portfolio

Aurora Solar Technologies (ACU-TSX.V) Price - $0.23 Market Cap - $24M
  • Aurora Solar Technologies Strengthens Scientific Team, Extends Intellectual Property Portfolio and Wins Customer R&D Facility Order
  • Press Release https://tinyurl.com/yx8mp557
Note from Paul:

"I went and visited Aurora Solar on Friday 23rd and was given a demonstration of their Insight software product. I was there with someone with a much stronger industry and engineering background. I came away with a very good impression of what they have created. They presented us with data they collected from a customer's beta site. It was very impressive. It looks like it works as they were hoping it would. Now the big question is will customers buy this SAAS product?

I believe they will. The cost/benefit is too compelling. This software has the potential to save costs and generate higher revenue for a solar cell manufacturer an average of about $35 million per year, per facility! There are currently at least 30 facilities that would benefit and this number is growing every year. Expected annual pricing for an Insight system is about $500k for a current addressable market of about $15 million annually. This is very high margin revenue too. I think the prospects look very good for ACU.

The stock has had a very good run recently, hitting new multi year highs. I sold a little bit into strength at $0.255 recently. I hope to buy it back on some further weakness hopefully around $0.20-$0.21, maybe lower. There are approximately 2.07 million $0.075 warrants that expire on November 15 2020 and another 19 million on various dates throughout March 2021 so I would expect we will see this selling pressure. I view any decent dip from warrant selling pressure as an opportunity to add.

I am a buyer on any significant pullback."

Renoworks Software (RW-TSX.V) Price - $0.375 Market Cap - $13.7M

Note from Paul:

"I had a quick chat with RW CEO Doug Vickerson on Thursday 22nd. I was just looking for reassurance that business was still fine, which apparently it is. I think RW continues to position itself well in the remodelling/construction space and after reviewing the company numbers again, and our forward looking modelling, I'm quite surprised the company hasn't gotten a lot more attention considering how most construction/tech stocks have soared. Seems companies like Renoworks would be perfectly positioned to take advantage of that convergence. 

I'm a buyer of RW.V under $0.40"

Smallcap Discoveries Select Watchlist

Avante Logixx Inc (XX-TSX.V) Price - $92 Market Cap - $19.5
Mimi's Rock Corp (MIMI-TSX.V) Price - $0.485 Market Cap - $25.5M
  • Mimi's Rock Launches Dr. Tobias Brand on iHerb and eVitamins Portals, Announces Organizational Changes
  • Press Release https://tinyurl.com/y48gaeaa
Tornado Global Hydrovacs (TGH-TSX.V) Price - $0.16 Market Cap - $20M
Ackroo Inc (AKR-TSX.V) Price - $0.15 Market Cap - $11.5M
CB2 Insights (CBII-TSX.V) Price - $0.59 Market Cap - $58M
  • CB2 Insights announces debt conversion of $3M USD held by Merida Capital and extinguishes all long-term debt liabilities
  • Press Release https://tinyurl.com/y6dasmcd
Fab-Form Industries LTD (FBF-TSX.V) Price - $0.48 Market Cap - $4M
  • Announced Q3 Financials
  • Revenue of $872K
  • Gross Profit of $316K (36%)
  • Net income of $119K (0.013 EPS)
Innovotech (IOT-TSX.V) Price - $0.225 Market Cap - $8.6M
MediaValet (MVP-TSX.V) Price - $2.44 Market Cap - $79M
  • MediaValet Launches CreativeSPACES(TM) Remote Edition - the Future of Creative Workflow Management
  • Press Release https://tinyurl.com/y63jas5y
Microbix Biosystems (MBX-TSX) Price - $0.375 Market Cap - $41M
BPLI Holdings (BPLI-TSX.V) Price - $0.14 Market Cap - $15M
  • The Province of Newfoundland and Labrador Leading the Way with COVID-19 Workplace Safety Training
  • Press Release https://tinyurl.com/y2juos5s
GBLT Corp (GBLT-TSX.V) Price $0.085 Market Cap - $9.5M
Legend Power Systems (LPS-TSX.V) Price - $0.35 Market Cap $35.7M
  • Legend Power Launches SmartGATE Insights Service to Assess the Health of Building Electrical Systems
  • Press Release https://tinyurl.com/yynz4b78
Gatekeeper Systems (GSI-TSX.V) Price - $0.85 Market Cap - $76M
Nova Leap Health (NLH-TSX.V) Price $0.405 Market Cap - $26.5M
  • Nova Leap Health Corp. Announces Execution of Definitive Agreement to Acquire Home Care Business in Massachusetts
  • Press Release https://tinyurl.com/yynffqj5
Yangaroo (YOO-TSX.V) Price - $0.11 Market Cap - $6.6M
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