International Spirits & Wellness Holdings, Inc. (OTCMKTS: ISWH) is an increasingly interesting name trading on the OTC right now. For a brief background, the company is a diversified branding play with commercial-stage operations already in place in the CBD, Wellness, Home Healthcare, and Spirits industries, and development stage operations in the Renewable Energy and Supply Chain & Logistics markets. Based on recent financial statements, we see strong topline growth and expanding margins on an operating basis with very little overhead in core operations.
The company recently undertook a shareholder-friendly restructuring and reverse split to normalize the share price and dramatically tighten the float to well under 1 million shares (it doesn’t show up yet on OTCmarkets.com, but the math isn’t difficult).
“A shareholder-friendly restructuring was necessary to strengthen our relationship with capital markets, pursue a near-term uplist to a higher exchange tier, and set in motion our operational strategy for 2020,” commented Alonzo Pierce, President and Chairman of ISWH. “We have a number of very compelling catalysts set to roll out, but we needed to provide a viable context – to lay a foundation for that success – as an initial step. We have achieved that with our restructuring and reverse split last week.”
This leaner, lighter cap structure offers traders and investors a new playing field free from the encumbrance of dilutive forces and an oppressive share supply.
ISWH is now embarking on a rebirth of its market identity. And you can be relatively confident that management has more in store than just pushing the reset button. In our experience, when we see this type of maneuver, it is typically undertaken in front of a series of known positive catalysts that are about to be revealed.
That’s why these types of opportunities often play well for those willing to “shoot first and ask questions later”: once the big news hits, the tight float and lack of existing speculative exposure can create a vacuum above shares for a quick sprint higher. The last time this company did something similar (Q3 2017), it preceded a move into the CBD marketplace at the height of the CBD frenzy, positioning the company for an uplisting and a surge of more than 700% in a couple of months.
We don’t know exactly what the narrative will be this time around. But, right now, the stage is set and traders would be wise to expect some fireworks ahead.
We would expect some more development on the theme of its recent communication about operations in the renewable energy space, as well as more expansion in its rapidly growing home healthcare segment. In addition, given its announcement a few months ago about its partnership with a leading CBD nano-infusion player (BioPulse Labs), it’s not hard to imagine a major branding refresh and big marketing push in the high growth CBD marketplace.
But, most importantly, the structural factors are lined up to exaggerate the upside impact of any new key catalyst, so the speculative opportunity is probably – perhaps ironically – right now, before the “why” is fully clarified by company communications.
“This is truly all about embracing a very aggressive growth-oriented future path at ISWH,” continued Pierce. “We have put in place a winning framework as a genuine disruptor in the health and wellness space, and we continue to see dramatic growth in that endeavor, including strong financial performance over recent quarters. We are also entering several new markets, with a true edge already in place, and will be providing details on those strategic moves over the very near term. Long story short: we have some very exciting announcements ahead and we wanted to provide a solid structural foundation in the stock ahead of those catalysts for the benefit of our committed shareholders.”