Hello all,
Let's use this thread to discuss the GameStop situation this weekend, please don't open new threads about it unless it is a unique perspective or brings very valuable information.
Do note, posts and comments are still restricted to users with a higher Karma and account age.

Important information

First, let's get some things out of the way:

• The short squeeze has not squoze yet, short interest estimates are still extremely high, I won't post the sources and encourage you to search for it yourself.
• The gamma squeeze has not happened, it may happen Monday, it may happen gradually, it may not happen (if their positions have already been covered), it isn't necessary for anything to happen, however.
• The establishment is still lying about many things for the purpose of market manipulation (Jim Cramer, CNBC, etc.). These people are SOLD. Read Canadian news channels regarding the situation, they are much less biased!
• Google and Apple and removing negative reviews from bad brokers from their app stores, put a calendar reminder in 2-6 weeks to add your review at that time, instead of now.

Let's make a list of the Brokers that restricted the purchasing of specific tickers

The worst thing that happened this week were the restrictions that our brokers put on buying specific tickers. This, obviously, affected the stock market, tanked those tickers, and significantly reduced our trust in the institutions at hand.
Now, I'm aware the reasons for this are complicated, we know that for many of them, they were forced to restrict these tickers by their Clearing Houses (Apex being the main one), we don't exactly know why, or whether that is legal or not, however.
One thing for certain, the communication by the brokers and clearing houses was very, very, very bad. This, in turns, significantly harmed the public's trust in them, as well as the institutions in charge of regulating this.
Here is my list, please comment below and let me know which ones I've missed:

Horrible Brokers - Restricted purchasing of certain tickets and lied/gloated about it

• Robinhood - Now Blocking 50 Equities - CEO lying saying they have no liquidity issues, 1 day before getting a 1 billion bailout - Join the lawsuit against them if you were affected
• Interactive Brokers (US/CAN) - Display visible contempt for Retail traders, wants GME to go to 17 before re-enabling trading - Blocked Trading212, as their acting intermediary
• E-Toro - Proof - Forced stop-losses

Bad Brokers - Restricted purchasing of certain tickers

• E-Trade - Proof
• Ally - Proof
• Public.com - Proof
• Merrill Edge - Proof
• IG Broker - Proof
• Trade Republic - Proof
• Webull - Admitted they were forced to by clearing firm - Clearing firm is Apex - They'll be moved to neutral once they publicly confirm Apex was sole reason the trades were restricted.
• Stake - Proof
• Trading212 - Proof - re-enabled, caused by intermediary - Intermediary is IB - Restricted purchasing of other securities previous - Based on them restricting securities before this, and countless complaints regarding other restrictions, I've put them back in the bad list.

Neutral Brokers - Restricted trading, publicly naming their intermediary

• Freetrade - Proof, blames Barclays - CMO Interview - CMO Tweets
• M1 Finance - Proof - Blames Apex Clearing
  
• Tastyworks - Proof, blame Apex Clearing
  
• Stash - Proof, blamex Apex Clearing
  
• TD Ameritrade/Canada - Proof - Proof2 - (Margin requirements increased, Covered call and short put orders may only be placed with a broker and support times are > 2h, other trades restricted) - Neutral because they didn't restrict the purchase of stocks with cash.
  
• Revolut - Proof - Blames DriveWealth LCC
  

Good Brokers - Did not restrict trading

• Most Canadian Brokers (Questrade, Qtrade, Disnat, BMO, HSBC, RBC, TD, etc.)
• Most European Brokers (Swissquote, TradeStation, Degiro)
• Fidelity
• Vanguard
• WealthSimple (CAN, US)
• Schwab (Margin requirements increased)
• You Invest (JP Morgan/Chase)
• Capital.com
• Wells Fargo - allowed trades but banned its advisors from talking about GameStop
• Nordnet
• Citibank

Note regarding the clearing houses

The first step is to know why brokers restricted the trading. The second step is to investigate what happened with the clearing houses. Currently, the following clearing houses seem to have had the most issues:

• Apex Clearing
• Barclays
• IKBR

We don't know if these firms acted maliciously (protecting themselves before protecting the free market), or because they literally had no choice. If the former, they need to be punished. If the later, then laws need to change. EITHER WAY, something needs to change, this post is merely here to put attention on the problem, I don't claim to have the solution.
Additionally, there needs to be open communication about this issue, currently, they are not saying anything on social media regarding this. Once they do, I'll update this post with it.
Note: / THICC_DICC_PRICC tried to explain this in some detail here. I cannot attest to the accuracy/validity of his explanation, feel free to discuss that on his post.
We might keep this information on the sidebar...forever. Please help me build this list to completion. If you are using a broker in the bad list, even if you are not invested in the tickers that have been restricted, please consider moving to a better broker.
Thank you all for your patience, we are sorry new members are not able to comment yet, we promise you will be allowed to once this is over!

I posted this yesterday morning (UK time) but after 5 hours or so, pennystocks deleted the original post. I had a message to share it on here too, so here it is!
--
This is my first time posting a DD post – a friend of mine who moderates on SPACs has shared some analysis I have written previously, but I’m keen to share this here, and see if there is any appetite for sharing my own personal written DD I have on the 30 stocks I have across a number of different portfolios.
I have modified this format, as it was originally a script for a video which I created on the stock. If you prefer to listen – check it out here: https://youtu.be/qsjwU7kkPsw
Some of the market stats (market cap, current multiples, etc.) are correct as of Feb-06, and clearly a little outdated since the price movements.
Not a financial advisor, do your own DD. I am long HITI and have an expectation of a long term hold on this stock.
Overview

• High Tide Canada-based cannabis retail company, operating under multiple brands. It operates under 3 core divisions:

1. Brick and mortar retail – 4 key brands with just under 70 locations in Canada. Brands include: Canna Cabana, New Leaf, Meta Cannabis and Kushbar. Forecast to have around 115 stores by end of 2021
2. Online retail – has 2 brands, both of which attract millions of viewers per month – Grasscity.com and CBDcity.com
3. Wholesale – manufacturer of paraphernalia in US and Canada. Number of products are branded with various celebrities, Snoop Dogg, Paramount Pictures, Trailer Park Boys and many more

• Has good c-level execs and experienced executive board; hold significant stake in the business. CEO Raj Grover holds just over 21% of the shares
• Currently has a market cap of around $280m. Still significant upside to the valuation – see analysis later in post

Investment Merits
Very strong market growth:

• Business has demonstrated growth both organically (through new store openings, more online sales and greater wholesale sales), as well as inorganically through M&A
• Growth in markets which High Tide has a physical presence in is expected to be very strong. North American cannabis market (Canada and US) is forecast to grow by 30% a year to 2027 (source: research and markets)
• Analysts covering High Tide are forecasting growth in excess of this, which is positive to see and implies capturing market share
• New markets / geographies ‘opening up’, legalizing and regulating cannabis is also an exciting and realistic prospect for incremental growth:

1. The US federal legalization debate is on the table
2. Many other countries are considering this too and High Tide is well positioned for these; this is catalyzed by the fact that government debt has increased significantly as part of the response to the COVID-19 health crisis. This needs to be repaid somehow, and increasing tax rates on existing taxes is an unpopular political move. Finding new tax revenues is a more palatable way of increasing tax revenues for governments. This is especially important in countries where elections are upcoming.

• Personally I do expect to see this accelerate the agenda for the regulation and legalization of cannabis in many new countries
• Whilst predominantly Canada and US based, High Tide does have presence in some markets where cannabis is not regulated or legalized, the UK for example (~10% of Grasscity sales are made here) and so it is well positioned with a strong and established brand to capitalize on this opportunity, when / if the market ‘opens up’

Regulation

• High Tide benefits from the regulatory focus and overhang on the cannabis retail sector as it represents a strong barrier to entry, making it more challenging for new competitors to enter market
• Participants in the market need to have licenses and ensure consistent compliance with laws to continue operating – failure to comply can result in significant financial penalties
• Personally I normally don’t like investing into retail. There are usually fairly limited barriers to entry, minimal differentiation and negligible customer loyalty, however the cannabis market does have different characteristics in this respect and makes it a more compelling proposition
• Regulation also benefits those with scale, something High Tide has as the leading player in the market. It costs money to obtain and retain licences to operate and it costs money to ensure compliance with all the laws and regulations and that all staff are acting in accordance with these
• Some parallels in this respect which can be drawn to casino gaming in casinos; you don’t see new casinos popping up at the same rate which you see new restaurants or apparel stores opening

Demand

• There’s a lot to like about the demand dynamics for High Tide. It’s vice-nature means that demand is less correlated to disposable incomes. Given where we are in economic cycle, especially important consideration
• For those doubting this, check alcohol, tobacco or gambling expenditure across economic cycles historically, for a proxy

Strong performance throughout COVID-19 crisis

• Despite heavy weighting towards brick and mortar, (the most hard hit part of retail) it has effectively managed the shift to online, which is a positive
• Has relied on government support and financial assistance in the form of job retention schemes (address in more detail later in post)
• This demonstrates management are capable and have effectively navigated the challenging situation

Data

• Massively summarized from the video, (and my video on KERN) so check that out if interested in this point, however, they have unique access to supply chain data which could be monetized effectively and generate strong levels of recurring revenues
• Other established sectors have a trusted party with such unique access to data (e.g. alcohol, lithium, different foods, etc.) and the opportunity here is enormous
• I would like to see High Tide capitalize on this

Forecasts financials & analysts

• Currently 2 analysts covering High Tide, both have a buy rating on the business
• Their coverage is slightly outdated (expect this being updated soon and a further catalyst for positive price action) and their price targets are 60c; at the time their reports were published, they were forecasting a 4x upside (HITI was trading at ~15c)
• Same analysts also forecasting strong growth - 77% CAGR to 2022. They are forecasting revenues of around $250m and EBITDA of $46m. A reminder here, these are professional analysts, not YouTube students – these come from their financial models, the assumptions of which are discussed with management

​
https://preview.redd.it/9ft3iuw6zmg61.png?width=602&format=png&auto=webp&s=44f5a24a035466bac6e9e72c70eb1edcadf5091d
Valuation

• Going to go quick here, its explained more slowly in the video but High Tide is currently valued at a significant discount to the other listed peers
• Looking at EV / FY+1 Sales multiples – EBITDA not meaningful as some of the peer group are EBITDA negative and High Tide itself has only recently become EBITDA positive

https://preview.redd.it/83j8aqdkzmg61.png?width=342&format=png&auto=webp&s=f06ec34f6de10eeae049710dd59c494f6ef697c9

• Personally, I think Planet13 is the most comparable given its business model
• Taking both Planet13 multiple and peer group average multiple, this is then applied to High Tide’s forecast FY+1 sales to calculate an enterprise value – this is adjusted for net debt to get to a market capitalization and then divided by the share count to get an implied share price
• The table below shows the implied stock price valuations from this analysis

​
https://preview.redd.it/1z2ap11mzmg61.png?width=406&format=png&auto=webp&s=775ddc0c9d7e99412dbb4eb1fbbf8ed4645bc235
NB – assumed the following:

1. Net debt will change in coming year given the capital structure and a large number of convertible notes – this has been ignored given it will have small impact on the price
2. The share count will change as a result of dilution from various instruments – if this bothers you massively then look at the valuation discount on the basis of the enterprise value as it does not impact this (and only slightly on the market cap given minimal impacts to cash from instrument execution, etc.)
3. Not accounting for any stock split, consolidation or any other M&A deals
4. The FY21 financials are on the basis of the mean broker estimates from Thomson Reuters – Seeking Alpha has different and slightly outdated ones

Investment Risks & Mitigants / Outstanding DD points
Exposure to changing regulation

• US is only a small part of the market which High Tide addresses, while a change in regulation would have a big impact on the company, currently it is unlikely this would happen, given the discussions about potential federal legalization
• Canada regulation is established and not going anywhere
• Other countries likely to legalize and regulate cannabis, as outlined earlier

Dilution

• No escaping that there will be some significant dilution for shareholders, as pointed out in the table below, but this should be already priced into the stock
• Potential that new equity issuances could occur to help finance growth, but provided this growth is delivered, it should be accretive for the stock price

​
https://preview.redd.it/n8dzmapozmg61.png?width=602&format=png&auto=webp&s=12e0e8bbd93f0c5c17920e7a5c5fad2559cc8bf0
Potentially misleading cost basis information

• A risk that investors need to be aware with for all companies which have relied on government financial support during COVID-19 measures. Such support has resulted in the number of businesses going bankrupt decreasing massively – this is at a lower level than it ever normally is and is masking some real underlying issues within companies. As investors we need to be open eyed about this
• As High Tide has benefited from support in the form of the Canada’s Emergency Wage Support scheme, there is the risk that once this is lifted it may become apparent that the cost base has not been effectively managed
• Personally, I think this is mitigated by the synergy analysis conducted as part of the M&A. A full cost base analysis would have been conducted to calculate the potential $8.4m synergies so strong likelihood that this is under control, but should keep on our radar and reassess

Marketing expenses and celebrity licenses

• Need more information to ascertain whether these are underpinned by a compelling ROI. Seen a lot of people suggest this is a great positive, but the impact on sales volumes from these is unknown, as is the terms of these license agreements (e.g. split between upfront fee vs. volume-based fee)
• No escaping the fact that it is an increased cost and so need to understand the ROI this generates to determine whether it really is compelling
• Is there really more demand to pay a premium for Snoop Dogg bongs, Guns n Roses papers, Cheech & Chong grinders, or whatever they may be?
• So far management have suggested this has been helpful in driving new sales, but this is something to dig into more

If you want to check out the video, it would be appreciated: https://youtu.be/qsjwU7kkPsw

I think that this one has been under-reported somewhat but since I work in the online gaming industry, it showed up on my radar.
This SPAC has reached a deal to bring back Paysafe to the market, at a valuation of 9 billions.
What is Paysafe?
Paysafe Group has been consolidating the market for e-wallets and alternative payment methods for years and went back into private hands 3 years ago.
They regroup all the main e-wallets used for online gambling and Forex: Skrill and Neteller and also prepaid cards (to be bought in 7/11 and the like) under the Paysafe brand.
Why e-wallets matter in the online gambling market?
E-wallets and prepaid cards represent about 25% of the volume of payments in online gambling in UK, Europe, Canada and Skrill/NetellePaysafe are by far the biggest names in this field.
https://www.fisglobal.com/-/media/fisglobal/WorldPay/Docs/Miscellaneous/Gaming%20Payments%20Report%202019
Neteller and Moneybookers (as Skrill was known then) were dominating the US alternative payment methods gambling market in the US before they got pushed out in 2007. They still have high name recognition amongst the gambling crowd and web searches in the US for these brands remain high, even if they can’t process much transactions there for gambling since many states don’t have online gambling legislations yet, or very limiting ones.
E-Wallets are often the preferred payment method for gamblers since it allows to move money from one operator site to the other quickly and cheaply. They can also use it as a bankroll segregated from their main bank account/CC and on top of that, Paysafe offers loyalty benefits to users based on their transaction volumes. As such, their user retention is very good.
The prepaid card business is also a major factor for this stock attractiveness. Prepaid cards to be bought in gas stations or the like are often preferred by gamblers who want to strictly control their gambling or those who don’t have access to a CC (maybe because they gambled too much) or those that prefer cash transactions out of privacy concerns…
Why not invest in the gambling operators instead?
Operators such as Draftkings or legacy casino groups are going to make money but the regulatory environment is harsh and gambling taxes are crazy in some states and might keep going higher.
Moreover, the regulations being so fragmented, many smaller operators push in certain states and not others and the competitive environment is broad. Remember that gambling is a fungible good. There is no difference in the casino games that the operators can offer (same game studios, same rules) and aside from bonuses and the margins on sports bets, the only differentiation is in branding, which is a thin moat on a product that often leaves the users disgruntled (losers).
Payments on the other hand are not taxed for their relationship to gambling and there are far fewer players.
How does Paysafe make money?
The margins on their products are pretty high and Paysafe charges both sides of the transaction in the case of the e-wallets and the merchant side in the case of the prepaid cards.
For the use of Skrill and Neteller wallets, Paysafe charges on average 4.5% on the merchant side for deposits and a whooping 9.9% on deposits with prepaid cards… Larger merchants certainly can negotiate these rates down but this is still a healthy fee, much higher than credit card processors.
In markets where Paysafe has established domination they charge a small deposit fee to the user and a withdrawal fee.
For now, they charge no fees to the US users in a bid to grow market share surely but that will probably end some day.
Growth opportunity:
For now, the US online gambling market is still very limited. Most states have not legalized, the majority of those who have legalized only did so for sports betting and then a handful have legalized online casino gaming (where the real money is made). The opening up of the market is bound to grow as states need money and more of the world moves online.
https://www.playusa.com/us/
It is estimated that the online gaming market could reach 25 billions a year in the US in a few years time and 150 billions worldwide.
https://www.gminsights.com/industry-analysis/online-gambling-market#:~:text=The%20North%20America%20online%20gambling,CAGR%20during%20the%20forecast%20period.
https://www.grandviewresearch.com/press-release/global-online-gambling-market
These revenues do not equal to deposited amounts, they equal net deposits (deposits minus withdrawals). The hold % of online casinos can be anywhere between 50% and 80% depending on how degenerate the market is in a given country but we can conservatively assume 60%.
This means that deposits volume in the US alone would reach about 40 billions, Europe about 50 Billions and worldwide 250 billions.
That should give Paysafe around 8-10 billions in transaction volume per year in the US alone , another 10-12 billions in Europe and conservatively, another 20 billions worldwide.
Valuation estimates:
Rough estimates are therefore revenues of about 1.5 billions per year for Paysafe group in a few years for gambling alone.
Paysafe claims 1.5 billions in revenues total projected for 2021, with only a third from gambling.
Even assuming no growth from the other verticals, this means that the total revenues of Paysafe should grow by 66% with gambling alone in the next 5 years or so.
Pysafe is investing a lot into expansion in other areas than gambling, notably video-gaming and remittance so assuming they don’t fuck it up completely, we are likely to see a 3 billions dollar in revenues in the next 5 years.
Using Paypal’s marketcap vs revenues, that would mean 50 billions in marketcap for Paysafe… Of course, Paypal is ingrained deeply in the whole of ecommerce and Paysafe is more specialized in gambling which might be shakier and herefore command a lower valuation.
The deal details are not fully known but it looks like a current valuation of 9 billions for Paysafe Group upon listing.
Based on my estimates, the marketcap could reach 50 billions in a few years time, one US market for gambling fully opens.
$BFT is trading at a 25% premium right now, therefore the estimate is 4x on investment over a few years.
Obviously you retards are not the most patient bunch but I believe the stock will jump when it morphs and so keep an eye out for the options.

I'm basically quoting u/coinforce here. I discovered this gem, because of him and am already 14% plus since I bought. Thanks mate.
Alright nerds, gather round and listen closely. I've graduated to pennystocks chasing these juicy tendies while serving as an autistic prophet delivering good news to the retards and gambling degenerates in that sub.
"Alright u/Sweet-Zookepergame hurry the fuck up and give us the ticker you pumper"
This ain't a pump.
When I see the next golden ticket, I know when to enter with conviction and realize profits while some of you nerds decide to bag hold XSPA and downvote comments to make yourselves feel better.

Score Media and Gaming Inc. (TSE: SCR) (OTCMKTS: TSCRF)

What the fuck is this?
Score Media and Gaming Inc. empowers millions of sports fans through its digital media and sports betting products. Its media app 'theScore' is one of the most popular in North America, delivering fans highly-personalized live scores, news, stats, and betting information from their favorite teams, leagues, and players. The Company's sports betting app 'theScore Bet' delivers an immersive and holistic mobile sports betting experience and is currently available to place wagers in New Jersey, Color.
Key words for you nerds who can't read and have ADHD: SPORTS BETTING
It's already common knowledge sports betting is already big in the North American market - and will continue to generate tons of revenue as states continue to legalize sports betting. Canada is following suit. Legislations will be passed Q1 2021 and we're soon going to see an influx of CANADIAN online betting. Basically all of Canada uses this app exclusively for sports.

• 10M+ downloads on their sports media app with 4.7 stars on Google play store
• #1 sports app in Canada (#2 behind ESPN in the US) with 10% of Ontario's entire population that uses it
• theScore successfully began the multi-state expansion of its mobile sportsbook, theScore Bet, launching in both Colorado and Indiana in September
• theScore Bet secured market access to operate an online casino in New Jersey via a multi-year agreement with Twin River Worldwide Holdings Inc.
• Recently closed its bought deal offering yesterday, issuing 28.6mm shares at $1.40/sharefor gross proceeds of $40mm.
• Total views of theScore esports’ video content across all platforms reached a new all-time quarterly record of 292 million in Q4 F2020, year-over-year growth of 243%.
• Strong fucking balance sheet = increased flexibility for upfront investments in new markets (e.g., market access fees, infrastructure, etc.)
• theScore is competitively advantaged in Canada, vs. foreign operators, as a homegrown player with a strong brand, which we believe will afford it preferential treatment by regulators with early market access, thus paving the way for early market share gains
• theScore esports just recently has been named the exclusive English language broadcast partner for the League of Legends’ Demacia Championship, a marquee annual event featuring 24 of China’s top esports teams.

🚀 Let's take a look at DKNG and PENN this year 🚀
🚀 Share prices for these companies have gone up 300% already this year alone, and with more legalization coming through 2021, theScore is just beginning to scratch the surface and will follow suit.
🚀 TIMING: As vaccines begin to be distributed and the economy recovers, states are desperate for revenue and will be looking to ease regulations on sports betting. The more Sport games start promoting and reopening, the more these stocks will gain (especially with March Madness, NBA/NHL playoffs, etc.)
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🚀 Listen - I'm literally handing you a platter of gold here. If you understand this market, the trends and where actual revenues can be generated - then you understand the play here. Canada is UNTAPPED. This thing will pick up steam soon and will graduate from TSX/OTC and can be easily listed on the NASDAQ. Once that happens, Robinhood will have access and the sky is the limit. I'm not here pumping a fucking non-revenue generating, fuelled by hype only, and a company within an industry that I don't fucking understand.
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TLDR: BUY AND GET IN NOW.
Clearly, I'm on Interstellar's Endurance spaceship with TARS and CASE about to enter a wormhole that'll slingshot me into another galaxy... while most of you nerds are fighting to get on wooden sail boats. At the same time, I'm from the future telling Murphy Cooper (you nerds) how to find the tendies.
MURPHY'S LAW: WHATEVER CAN HAPPEN, WILL HAPPEN.
EDIT: FORGOT THESE 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
++++++++++++++++++++++++++++++++++

NEW INFO 5 Results from share redemption are posted. Less than .2% redeemed. Very bullish as investors are showing extreme confidence in the future of PLBY.
https://finance.yahoo.com/news/playboy-mountain-crest-acquisition-corp-120000721.html
NEW INFO 4 Definitive Agreement to purchase 100% of Lovers brand stores announced 2/1.
https://www.streetinsider.com/Corporate+News/Playboy+%28MCAC%29+Confirms+Deal+to+Acquire+Lovers/17892359.html
NEW INFO 3 I bought more on the dip today. 5081 total. Price rose AH to $12.38 (2.15%)
NEW INFO 2 Here is the full webinar.
https://icrinc.zoom.us/rec/play/9GWKdmOYumjWfZuufW3QXpe_FW_g--qeNbg6PnTjTMbnNTgLmCbWjeRFpQga1iPc-elpGap8dnDv8Zww.yD7DjUwuPmapeEdP?continueMode=true&tk=lEYc4F_FkKlgsmCIs6w0gtGHT2kbgVGbUju3cIRBSjk.DQIAAAAV8NK49xZWdldRM2xNSFNQcTBmcE00UzM3bXh3AAAAAAAAAAAAAAAAAAAAAAAAAAAA&uuid=WN_GKWqbHkeSyuWetJmLFkj4g&_x_zm_rtaid=kR45-uuqRE-L65AxLjpbQw.1611967079119.2c054e3d3f8d8e63339273d9175939ed&_x_zm_rhtaid=866
NEW INFO 1 Live merger webinar with PLBY and MCAC on Friday January 29, 2021 at 12:00 NOON EST link below
https://mcacquisition.com/investor-relations/press-release-details/2021/Playboy-Enterprises-Inc.-and-Mountain-Crest-Acquisition-Corp-Participate-in-SPACInsider-ICR-Webinar-on-January-29th-at-12pm-ET/default.aspx
Playboy going public: Porn, Gambling, and Cannabis
!!!WARNING READING AHEAD!!! TL;DR at the end. It will take some time to sort through all the links and read/watch everything, but you should.
In the next couple weeks, Mountain Crest Acquisition Corp is taking Playboy public. The existing ticker MCAC will become PLBY. Special purpose acquisition companies have taken private companies public in recent months with great success. I believe this will be no exception. Notably, Playboy is profitable and has skyrocketing revenue going into a transformational growth phase.
Porn - First and foremost, let's talk about porn. I know what you guys are thinking. “Porno mags are dead. Why would I want to invest in something like that? I can get porn for free online.” Guess what? You are absolutely right. And that’s exactly why Playboy doesn’t do that anymore. That’s right, they eliminated their print division. And yet they somehow STILL make money from porn that people (see: boomers) pay for on their website through PlayboyTV, Playboy Plus, and iPlayboy. Here’s the thing: Playboy has international, multi-generational name recognition from porn. They have content available in 180 countries. It will be the only publicly traded adult entertainment (porn) company. But that is not where this company is going. It will help support them along the way. You can see every Playboy magazine through iPlayboy if you’re interested. NSFW links below:
https://www.playboy.com/
https://www.playboytv.com/
https://www.playboyplus.com/
https://www.iplayboy.com/
Gambling - Some of you might recognize the Playboy brand from gambling trips to places like Las Vegas, Atlantic City, Cancun, London or Macau. They’ve been in the gambling biz for decades through their casinos, clubs, and licensed gaming products. They see the writing on the wall. COVID is accelerating the transition to digital, application based GAMBLING. That’s right. What we are doing on Robinhood with risky options is gambling, and the only reason regulators might give a shit anymore is because we are making too much money. There may be some restrictions put in place, but gambling from your phone on your couch is not going anywhere. More and more states are allowing things like Draftkings, poker, state ‘lottery” apps, hell - even political betting. Michigan and Virginia just ok’d gambling apps. They won’t be the last. This is all from your couch and any 18 year old with a cracked iphone can access it. Wouldn’t it be cool if Playboy was going to do something like that? They’re already working on it. As per CEO Ben Kohn who we will get to later, “...the company’s casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth.” Honestly, I stopped researching Scientific Games' sports betting segment when I saw the word ‘omni-channel’. That told me all I needed to know about it’s success.
“Our SG Sports™ platform is an enhanced, omni-channel solution for online, self-service and retail fixed odds sports betting – from soccer to tennis, basketball, football, baseball, hockey, motor sports, racing and more.”
https://www.scientificgames.com/
https://www.microgaming.co.uk/
“This latter segment has become increasingly enticing for Playboy, and it said last week that it is considering new tie-ups that could include gaming operators like PointsBet and 888Holdings.”
https://calvinayre.com/2020/10/05/business/playboys-gaming-ops-could-get-a-boost-from-spac-purchase/
As per their SEC filing:
“Significant consumer engagement and spend with Playboy-branded gaming properties around the world, including with leading partners such as Microgaming, Scientific Games, and Caesar’s Entertainment, steers our investment in digital gaming, sports betting and other digital offerings to further support our commercial strategy to expand consumer spend with minimal marginal cost, and gain consumer data to inform go-to-market plans across categories.”
https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tMDAA1
They are expanding into more areas of gaming/gambling, working with international players in the digital gaming/gambling arena, and a Playboy sportsbook is on the horizon.
https://www.playboy.com/read/the-pleasure-of-playing-with-yourself-mobile-gaming-in-the-covid-era
Cannabis - If you’ve ever read through a Playboy magazine, you know they’ve had a positive relationship with cannabis for many years. As of September 2020, Playboy has made a major shift into the cannabis space. Too good to be true you say? Check their website. Playboy currently sells a range of CBD products. This is a good sign. Federal hemp products, which these most likely are, can be mailed across state lines and most importantly for a company like Playboy, can operate through a traditional banking institution. CBD products are usually the first step towards the cannabis space for large companies. Playboy didn’t make these products themselves meaning they are working with a processor in the cannabis industry. Another good sign for future expansion. What else do they have for sale? Pipes, grinders, ashtrays, rolling trays, joint holders. Hmm. Ok. So it looks like they want to sell some shit. They probably don’t have an active interest in cannabis right? Think again:
https://www.forbes.com/sites/javierhasse/2020/09/24/playboy-gets-serious-about-cannabis-law-reform-advocacy-with-new-partnership-grants/?sh=62f044a65cea
“Taking yet another step into the cannabis space, Playboy will be announcing later on Thursday (September, 2020) that it is launching a cannabis law reform and advocacy campaign in partnership with National Organization for the Reform of Marijuana Laws (NORML), Last Prisoner Project, Marijuana Policy Project, the Veterans Cannabis Project, and the Eaze Momentum Program.”
“According to information procured exclusively, the three-pronged campaign will focus on calling for federal legalization. The program also includes the creation of a mentorship plan, through which the Playboy Foundation will support entrepreneurs from groups that are underrepresented in the industry.” Remember that CEO Kohn from earlier? He wrote this recently:
https://medium.com/naked-open-letters-from-playboy/congress-must-pass-the-more-act-c867c35239ae
Seems like he really wants weed to be legal? Hmm wonder why? The writing's on the wall my friends. Playboy wants into the cannabis industry, they are making steps towards this end, and we have favorable conditions for legislative progress.
Don’t think branding your own cannabis line is profitable or worthwhile? Tell me why these 41 celebrity millionaires and billionaires are dummies. I’ll wait.
https://www.celebstoner.com/news/celebstoner-news/2019/07/12/top-celebrity-cannabis-brands/
Confirmation: I hear you. “This all seems pretty speculative. It would be wildly profitable if they pull this shift off. But how do we really know?” Watch this whole video:
https://finance.yahoo.com/video/playboy-ceo-telling-story-female-154907068.html
Man - this interview just gets my juices flowing. And highlights one of my favorite reasons for this play. They have so many different business avenues from which a catalyst could appear. I think paying attention, holding shares, and options on these staggered announcements over the next year is the way I am going to go about it. "There's definitely been a shift to direct-to-consumer," he (Kohn) said. "About 50 percent of our revenue today is direct-to-consumer, and that will continue to grow going forward.” “Kohn touted Playboy's portfolio of both digital and consumer products, with casino-style gaming, in particular, serving a crucial role under the company's new business model. Playboy also has its sights on the emerging cannabis market, from CBD products to marijuana products geared toward sexual health and pleasure.” "If THC does become legal in the United States, we have developed certain strains to enhance your sex life that we will launch," Kohn said. https://cheddar.com/media/playboy-goes-public-health-gaming-lifestyle-focus Oh? The CEO actually said it? Ok then. “We have developed certain strains…” They’re already working with growers on strains and genetics? Ok. There are several legal cannabis markets for those products right now, international and stateside. I expect Playboy licensed hemp and THC pre-rolls by EOY. Something like this: https://www.etsy.com/listing/842996758/10-playboy-pre-roll-tubes-limited?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=pre+roll+playboy&ref=sr_gallery-1-2&organic_search_click=1 Maintaining cannabis operations can be costly and a regulatory headache. Playboy’s licensing strategy allows them to pick successful, established partners and sidestep traditional barriers to entry. You know what I like about these new markets? They’re expanding. Worldwide. And they are going to be a bigger deal than they already are with or without Playboy. Who thinks weed and gambling are going away? Too many people like that stuff. These are easy markets. And Playboy is early enough to carve out their spot in each. Fuck it, read this too: https://www.forbes.com/sites/jimosman/2020/10/20/playboy-could-be-the-king-of-spacs-here-are-three-picks/?sh=2e13dcaa3e05
Numbers: You want numbers? I got numbers. As per the company’s most recent SEC filing:
“For the year ended December 31, 2019, and the nine months ended September 30, 2020, Playboy’s historical consolidated revenue was $78.1 million and $101.3 million, respectively, historical consolidated net income (loss) was $(23.6) million and $(4.8) million, respectively, and Adjusted EBITDA was $13.1 million and $21.8 million, respectively.”
“In the nine months ended September 30, 2020, Playboy’s Licensing segment contributed $44.2 million in revenue and $31.1 million in net income.”
“In the ninth months ended September 30, 2020, Playboy’s Direct-to-Consumer segment contributed $40.2 million in revenue and net income of $0.1 million.”
“In the nine months ended September 30, 2020, Playboy’s Digital Subscriptions and Content segment contributed $15.4 million in revenue and net income of $7.4 million.”
They are profitable across all three of their current business segments.
“Playboy’s return to the public markets presents a transformed, streamlined and high-growth business. The Company has over $400 million in cash flows contracted through 2029, sexual wellness products available for sale online and in over 10,000 major retail stores in the US, and a growing variety of clothing and branded lifestyle and digital gaming products.”
https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF
Growth: Playboy has massive growth in China and massive growth potential in India. “In China, where Playboy has spent more than 25 years building its business, our licensees have an enormous footprint of nearly 2,500 brick and mortar stores and 1,000 ecommerce stores selling high quality, Playboy-branded men’s casual wear, shoes/footwear, sleepwear, swimwear, formal suits, leather & non-leather goods, sweaters, active wear, and accessories. We have achieved significant growth in China licensing revenues over the past several years in partnership with strong licensees and high-quality manufacturers, and we are planning for increased growth through updates to our men’s fashion lines and expansion into adjacent categories in men’s skincare and grooming, sexual wellness, and women’s fashion, a category where recent launches have been well received.” The men’s market in China is about the same size as the entire population of the United States and European Union combined. Playboy is a leading brand in this market. They are expanding into the women’s market too. Did you know CBD toothpaste is huge in China? China loves CBD products and has hemp fields that dwarf those in the US. If Playboy expands their CBD line China it will be huge. Did you know the gambling money in Macau absolutely puts Las Vegas to shame? Technically, it's illegal on the mainland, but in reality, there is a lot of gambling going on in China. https://www.forbes.com/sites/javierhasse/2020/10/19/magic-johnson-and-uncle-buds-cbd-brand-enter-china-via-tmall-partnership/?sh=271776ca411e “In India, Playboy today has a presence through select apparel licensees and hospitality establishments. Consumer research suggests significant growth opportunities in the territory with Playboy’s brand and categories of focus.” “Playboy Enterprises has announced the expansion of its global consumer products business into India as part of a partnership with Jay Jay Iconic Brands, a leading fashion and lifestyle Company in India.” “The Indian market today is dominated by consumers under the age of 35, who represent more than 65 percent of the country’s total population and are driving India’s significant online shopping growth. The Playboy brand’s core values of playfulness and exploration resonate strongly with the expressed desires of today’s younger millennial consumers. For us, Playboy was the perfect fit.” “The Playboy international portfolio has been flourishing for more than 25 years in several South Asian markets such as China and Japan. In particular, it has strategically targeted the millennial and gen-Z audiences across categories such as apparel, footwear, home textiles, eyewear and watches.” https://www.licenseglobal.com/industry-news/playboy-expands-global-footprint-india It looks like they gave COVID the heisman in terms of net damage sustained: “Although Playboy has not suffered any material adverse consequences to date from the COVID-19 pandemic, the business has been impacted both negatively and positively. The remote working and stay-at-home orders resulted in the closure of the London Playboy Club and retail stores of Playboy’s licensees, decreasing licensing revenues in the second quarter, as well as causing supply chain disruption and less efficient product development thereby slowing the launch of new products. However, these negative impacts were offset by an increase in Yandy’s direct-to-consumer sales, which have benefited in part from overall increases in online retail sales so far during the pandemic.” Looks like the positives are long term (Yandy acquisition) and the negatives are temporary (stay-at-home orders).
https://www.sec.gov/Archives/edgadata/1803914/000110465921006093/tm213766-1_defa14a.htm
This speaks to their ability to maintain a financially solvent company throughout the transition phase to the aforementioned areas. They’d say some fancy shit like “expanded business model to encompass four key revenue streams: Sexual Wellness, Style & Apparel, Gaming & Lifestyle, and Beauty & Grooming.” I hear “we’re just biding our time with these trinkets until those dollar dollar bill y’all markets are fully up and running.” But the truth is these existing revenue streams are profitable, scalable, and rapidly expanding Playboy’s e-commerce segment around the world.
"Even in the face of COVID this year, we've been able to grow EBITDA over 100 percent and revenue over 68 percent, and I expect that to accelerate going into 2021," he said. “Playboy is accelerating its growth in company-owned and branded consumer products in attractive and expanding markets in which it has a proven history of brand affinity and consumer spend.”
Also in the SEC filing, the Time Frame:
“As we detailed in the definitive proxy statement, the SPAC stockholder meeting to vote on the transaction has been set for February 9th, and, subject to stockholder approval and satisfaction of the other closing conditions, we expect to complete the merger and begin trading on NASDAQ under ticker PLBY shortly thereafter,” concluded Kohn.
The Players: Suhail “The Whale” Rizvi (HMFIC), Ben “The Bridge” Kohn (CEO), “lil” Suying Liu & “Big” Dong Liu (Young-gun China gang). I encourage you to look these folks up. The real OG here is Suhail Rizvi. He’s from India originally and Chairman of the Board for the new PLBY company. He was an early investor in Twitter, Square, Facebook and others. His firm, Rizvi Traverse, currently invests in Instacart, Pinterest, Snapchat, Playboy, and SpaceX. Maybe you’ve heard of them. “Rizvi, who owns a sprawling three-home compound in Greenwich, Connecticut, and a 1.65-acre estate in Palm Beach, Florida, near Bill Gates and Michael Bloomberg, moved to Iowa Falls when he was five. His father was a professor of psychology at Iowa. Along with his older brother Ashraf, a hedge fund manager, Rizvi graduated from Wharton business school.” “Suhail Rizvi: the 47-year-old 'unsocial' social media baron: When Twitter goes public in the coming weeks (2013), one of the biggest winners will be a 47-year-old financier who guards his secrecy so zealously that he employs a person to take down his Wikipedia entry and scrub his photos from the internet. In IPO, Twitter seeks to be 'anti-FB'” “Prince Alwaleed bin Talal of Saudi Arabia looks like a big Twitter winner. So do the moneyed clients of Jamie Dimon. But as you’ve-got-to-be-joking wealth washed over Twitter on Thursday — a company that didn’t exist eight years ago was worth $31.7 billion after its first day on the stock market — the non-boldface name of the moment is Suhail R. Rizvi. Mr. Rizvi, 47, runs a private investment company that is the largest outside investor in Twitter with a 15.6 percent stake worth $3.8 billion at the end of trading on Thursday (November, 2013). Using a web of connections in the tech industry and in finance, as well as a hearty dose of good timing, he brought many prominent names in at the ground floor, including the Saudi prince and some of JPMorgan’s wealthiest clients.” https://www.nytimes.com/2013/11/08/technology/at-twitter-working-behind-the-scenes-toward-a-billion-dollar-payday.html Y’all like that Arab money? How about a dude that can call up Saudi Princes and convince them to spend? Funniest shit about I read about him: “Rizvi was able to buy only $100 million in Facebook shortly before its IPO, thus limiting his returns, according to people with knowledge of the matter.” Poor guy :(
He should be fine with the 16 million PLBY shares he's going to have though :)
Shuhail also has experience in the entertainment industry. He’s invested in companies like SESAC, ICM, and Summit Entertainment. He’s got Hollywood connections to blast this stuff post-merger. And he’s at least partially responsible for that whole Twilight thing. I’m team Edward btw.
I really like what Suhail has done so far. He’s lurked in the shadows while Kohn is consolidating the company, trimming the fat, making Playboy profitable, and aiming the ship at modern growing markets.
https://www.reuters.com/article/us-twitter-ipo-rizvi-insight/insight-little-known-hollywood-investor-poised-to-score-with-twitter-ipo-idUSBRE9920VW20131003
Ben “The Bridge” Kohn is an interesting guy. He’s the connection between Rizvi Traverse and Playboy. He’s both CEO of Playboy and was previously Managing Partner at Rizvi Traverse. Ben seems to be the voice of the Playboy-Rizvi partnership, which makes sense with Suhail’s privacy concerns. Kohn said this:
“Today is a very big day for all of us at Playboy and for all our partners globally. I stepped into the CEO role at Playboy in 2017 because I saw the biggest opportunity of my career. Playboy is a brand and platform that could not be replicated today. It has massive global reach, with more than $3B of global consumer spend and products sold in over 180 countries. Our mission – to create a culture where all people can pursue pleasure – is rooted in our 67-year history and creates a clear focus for our business and role we play in people’s lives, providing them with the products, services and experiences that create a lifestyle of pleasure. We are taking this step into the public markets because the committed capital will enable us to accelerate our product development and go-to-market strategies and to more rapidly build our direct to consumer capabilities,” said Ben Kohn, CEO of Playboy.
“Playboy today is a highly profitable commerce business with a total addressable market projected in the trillions of dollars,” Mr. Kohn continued, “We are actively selling into the Sexual Wellness consumer category, projected to be approximately $400 billion in size by 2024, where our recently launched intimacy products have rolled out to more than 10,000 stores at major US retailers in the United States. Combined with our owned & operated ecommerce Sexual Wellness initiatives, the category will contribute more than 40% of our revenue this year. In our Apparel and Beauty categories, our collaborations with high-end fashion brands including Missguided and PacSun are projected to achieve over $50M in retail sales across the US and UK this year, our leading men’s apparel lines in China expanded to nearly 2500 brick and mortar stores and almost 1000 digital stores, and our new men’s and women’s fragrance line recently launched in Europe. In Gaming, our casino-style digital gaming products with Scientific Games and Microgaming continue to see significant global growth. Our product strategy is informed by years of consumer data as we actively expand from a purely licensing model into owning and operating key high-growth product lines focused on driving profitability and consumer lifetime value. We are thrilled about the future of Playboy. Our foundation has been set to drive further growth and margin, and with the committed capital from this transaction and our more than $180M in NOLs, we will take advantage of the opportunity in front of us, building to our goal of $100M of adjusted EBITDA in 2025.”
https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company
Also, according to their Form 4s, “Big” Dong Liu and “lil” Suying Liu just loaded up with shares last week. These guys are brothers and seem like the Chinese market connection. They are only 32 & 35 years old. I don’t even know what that means, but it's provocative.
https://www.secform4.com/insider-trading/1832415.htm
https://finance.yahoo.com/news/mountain-crest-acquisition-corp-ii-002600994.html
Y’all like that China money?
“Mr. Liu has been the Chief Financial Officer of Dongguan Zhishang Photoelectric Technology Co., Ltd., a regional designer, manufacturer and distributor of LED lights serving commercial customers throughout Southern China since November 2016, at which time he led a syndicate of investments into the firm. Mr. Liu has since overseen the financials of Dongguan Zhishang as well as provided strategic guidance to its board of directors, advising on operational efficiency and cash flow performance. From March 2010 to October 2016, Mr. Liu was the Head of Finance at Feidiao Electrical Group Co., Ltd., a leading Chinese manufacturer of electrical outlets headquartered in Shanghai and with businesses in the greater China region as well as Europe.”
Dr. Suying Liu, Chairman and Chief Executive Officer of Mountain Crest Acquisition Corp., commented, “Playboy is a unique and compelling investment opportunity, with one of the world’s largest and most recognized brands, its proven consumer affinity and spend, and its enormous future growth potential in its four product segments and new and existing geographic regions. I am thrilled to be partnering with Ben and his exceptional team to bring his vision to fruition.”
https://www.businesswire.com/news/home/20201001005404/en/Playboy-to-Become-a-Public-Company
These guys are good. They have a proven track record of success across multiple industries. Connections and money run deep with all of these guys. I don’t think they’re in the game to lose.
I was going to write a couple more paragraphs about why you should have a look at this but really the best thing you can do is read this SEC filing from a couple days ago. It explains the situation in far better detail. Specifically, look to page 137 and read through their strategy. Also, look at their ownership percentages and compensation plans including the stock options and their prices. The financials look great, revenue is up 90% Q3, and it looks like a bright future.
https://www.sec.gov/Archives/edgadata/1803914/000110465921005986/tm2034213-12_defm14a.htm#tSHCF
I’m hesitant to attach this because his position seems short term, but I’m going to with a warning because he does hit on some good points (two are below his link) and he’s got a sizable position in this thing (500k+ on margin, I think). I don’t know this guy but he did look at the same publicly available info and make roughly the same prediction, albeit without the in depth gambling or cannabis mention. You can also search reddit for ‘MCAC’ and very few relevant results come up and none of them even come close to really looking at this thing.
https://docs.google.com/document/d/1gOvAd6lebs452hFlWWbxVjQ3VMsjGBkbJeXRwDwIJfM/edit?usp=sharing
“Also, before you people start making claims that Playboy is a “boomer” company, STOP RIGHT THERE. This is not a good argument. Simply put. The only thing that matters is Playboy’s name recognition, not their archaic business model which doesn’t even exist anymore as they have completely repurposed their business.”
“Imagine not buying $MCAC at a 400M valuation lol. Streetwear department is worth 1B alone imo.”
Considering the ridiculous Chinese growth as a lifestyle brand, he’s not wrong.
Current Cultural Significance and Meme Value: A year ago I wouldn’t have included this section but the events from the last several weeks (even going back to tsla) have proven that a company’s ability to meme and/or gain social network popularity can have an effect. Tik-tok, Snapchat, Twitch, Reddit, Youtube, Facebook, Twitter. They all have Playboy stuff on them. Kids in middle and highschool know what Playboy is but will likely never see or touch one of the magazines in person. They’ll have a Playboy hoodie though. Crazy huh? A lot like GME, PLBY would hugely benefit from meme-value stock interest to drive engagement towards their new business model while also building strategic coffers. This interest may not directly and/or significantly move the stock price but can generate significant interest from larger players who will.
Bull Case: The year is 2025. Playboy is now the world leader pleasure brand. They began by offering Playboy licensed gaming products, including gambling products, direct to consumers through existing names. By 2022, demand has skyrocketed and Playboy has designed and released their own gambling platforms. In 2025, they are also a leading cannabis brand in the United States and Canada with proprietary strains and products geared towards sexual wellness. Cannabis was legalized in the US in 2023 when President Biden got glaucoma but had success with cannabis treatment. He personally pushes for cannabis legalization as he steps out of office after his first term. Playboy has also grown their brand in China and India to multi-billion per year markets. The stock goes up from 11ish to 100ish and everyone makes big gains buying somewhere along the way.
Bear Case: The United States does a complete 180 on marijuana and gambling. President Biden overdoses on marijuana in the Lincoln bedroom when his FDs go tits up and he loses a ton of money in his sports book app after the Fighting Blue Hens narrowly lose the National Championship to Bama. Playboy is unable to expand their cannabis and gambling brands but still does well with their worldwide lifestyle brand. They gain and lose some interest in China and India but the markets are too large to ignore them completely. The stock goes up from 11ish to 13ish and everyone makes 15-20% gains.
TL;DR: Successful technology/e-commerce investment firm took over Playboy to turn it into a porn, online gambling/gaming, sports book, cannabis company, worldwide lifestyle brand that promotes sexual wellness, vetern access, women-ownership, minority-ownership, and “pleasure for all”. Does a successful online team reinventing an antiquated physical copy giant sound familiar? No options yet, shares only for now. $11.38 per share at time of writing. My guess? $20 by the end of February. $50 by EOY. This is not financial advice. I am not qualified to give financial advice. I’m just sayin’ I would personally use a Playboy sports book app while smoking a Playboy strain specific joint and it would be cool if they did that. Do your own research. You’d probably want to start here:
WARNING - POTENTIALLY NSFW - SEXY MODELS AHEAD - no actual nudity though
https://s26.q4cdn.com/895475556/files/doc_presentations/Playboy-Craig-Hallum-Conference-Investor-Presentation-11_17_20-compressed.pdf
Or here:
https://www.mcacquisition.com/investor-relations/default.aspx
Jimmy Chill: “Get into any SPAC at $10 or $11 and you are going to make money.”
STL;DR: Buy MCAC. MCAC > PLBY couple weeks. Rocketship. Moon.
Position: 5000 shares. I will buy short, medium, and long-dated calls once available.

PEAK SYNOPSIS Peak Fintech Group (PKK in Canada, PKKFF in U.S.) - By MrDotto in the Stock Fam Discord group
Upcoming Name Change: Tenet Fintech Group
Industry (Financial Technology Services for Commercial Lending)
Notable Management: Johnson Joseph (C.E.O), Sheldon Inwentash (Board Member, Strategic Advisor)
Why We Love it:
My oh my…..where to begin? (I’ll just drop this and explain near the end: PKK expects to be listed on the NASDAQ by late March, early April. Put a pin in that and we’ll discuss later)
If you have recently joined the Stock Fam community (congratulations!), you may have come across the expression “Holy Grail” used for ThreeD Capital (IDK, IDKFF), and with good reason, as it is the current investment vehicle of legendary Canadian investor, Sheldon Inwentash (See the dedicated IDK board for more info). However, if ThreeD is the “Holy Grail”, Peak Fintech (soon to be Tenet Fintech Group) deserves a moniker of its own. I’d call it the “Crown Jewel” of the Stock Fam community. So, let’s get into why. Get comfortable.
Peak is a Canadian company with the incredibly rare distinction of being a growing player in the Chinese financial marketplace. Through its Asia Synergy subsidiaries, Peak facilitates lending between financial institutions and commercial borrowers. It does this through an online ecosystem that essentially does all the legwork for the banks by both assessing credit risk and also finding matches for lenders and borrowers within that ecosystem. Mr. Joseph himself once compared it, in very loose terms for new investors, to essentially a dating site for lending. Peak does the legwork, sets up the match, and takes a fee (currently in the 2% range of the total size of credit).
Now, after reading this, you’ll have questions, so let’s anticipate that and answer them now. After that, we will talk revenue numbers, and you’ll fall out of your chair and need assistance getting up (we assume no liability for chair accidents.
First, the big question most new investors to Peak have is “Well, is it safe to operate in China? You know, the whole Jack Ma thing…”
To answer this, we need to first understand the lending climate in China. A few years back, it was far too easy for any poorly run “lending centre” to pop up, give out loans with outrageous interest rates, and gouge the SME (Small and Medium sized Enterprises) that were in need of capital. This led to massive default rates and a climate that threatened to stifle commercial growth. The Chinese Government had to do something about it, so they did. Strict regulations came into play, and it laid a wasteland to the shady lenders that had profited from a less-regulated environment.
The result? Only the best, most thoroughly proven companies remained. Peak emerged from this landscape with the trust of major lenders, and perhaps more importantly, local and regional governments. Just in 2020, the company won the exclusive right to bring their Cubeler Lending Hub Ecosystem to financial centers of multiple cities. Who selected them? The government of course!
Afraid of what is happening to Jack Ma’s Alibaba and their financial arm, ANT Group? Not to worry. The government is looking to prevent monopolies from behemoth entities like ANT, which actually provide all the services of a bank! The IPO was postponed until ANT can bring itself up to actual bank-level regulations. Peak does not lend money. Let’s be clear here… PEAK IS NOT A LENDER. They facilitate successful, heavily de-risked lending arrangements between lenders and SME borrowers.
OK, I’ve made you wait long enough. Let’s get to the good stuff. I’ll just roll all out. Please ensure that your chair can withstand the strain.
The revenues for 2020 are, after Q3, already at $26 million. After Q4 the total will certainly be north of $40 million. This does not include nearly all of the following: Deals with massive distributors signing on in Q4. A potential reach of over 340,000 SMEs, well over 50 major lending institutions, 26 major distributors, 19 material suppliers, nearly 250 factories. Go to the DD board for people much better at napkin math than me, but conservative estimates of a $100m revenue stream in 2021 are….well, ridiculously conservative! (Seriously, some PKK board regulars will be upset with me for this low estimate)
Peak has been stress testing their lending hub ecosystem for future agreements with major Chinese online portals like Alibaba (through T-Mall), J.D.COM, and Pinduoduo. In fact, Peak has already released news of an impending agreement with Pinduoduo. Pinduoduo has well over 5.6m online merchants using its platform. There are game changers, and then there are GAME ENDERS. Done, game over. Peak wins. You win.
(Chinese social media influencers as product sellers is a crazy-huge industry in China. Peak has gained a foothold in that too. See our DD section for more info)
Oh, and then there is the fast-tracking of the stock to the NASDAQ (late Q1….yes, this quarter!). The application is to be completed in late January, early February, and the process takes 6-10 weeks. You may have heard how hot Fintech is these days on the NASDAQ? Peak expects to be listed in Hong Kong by mid 2021, too. You think, just maybe, Chinese investors might be interested in this, too?
If you have somehow remained attached to your chair, we can briefly discuss the data. Remember that offensively-low $100m revenue estimate for 2021? That currently does not include data monetization at all. With this volume of customers and access to all of the data gleaned from these transactions, the monetization of the data could DWARF ALL OTHER VERTICALS. The “blue sky” potential here ends far beyond the blue sky. It ends in outer space.
Oh, and Mr. Joseph sees them going to India as soon as late 2021. Yeah, India is pretty big I hear. World domination has a nice ring to it too, but let’s not get ahead of ourselves. Ok, get back in your chair, if you can. We are nearly done here. The Stock Fam community has well over 1,000 members on the Peak board, many of which can run DD circles around me.
Watch Stock Fam TV livestream videos for full breakdowns of a very special company. See you on the boards!

What happened last week in the stock market? What are the next interesting earnings reports? Let’s talk about the stock market!
Hey everyone and Welcome so let’s start with the recap of what has happened in the stock market since Monday.
Monday the DOW rose by more than 1,12% with the broad stock market SP500 also gaining more than half a percent while the NASDAQ was the laggard barely up 0,2% to finish the day while The VIX had another big drop closing at 22.2. About 70% of the companies were gaining while 80% were trading over 50 and 200-day moving averages. The stock market was lead by the energy sector, which saw a major spike of almost 5% with Financials and Industrials also up more than 1% for the day. The rally was pushed mostly by small and mid-cap value stocks while large-cap growth companies were lagging as you can see in this HEAT MAP with the biggest company in the world, Apple, dragging down the sector, down almost 3% for the day. CHART / SECTORS / CHART
Reports also came in on Monday that the PS5 and the new xBox have been sold out the moment they are available in stock, as the two gaming consoles are enjoying great demand, this bolds well for the parent companies Sony and Microsoft especially if they can keep up with the demand for this holiday season including Black Friday, holiday RETAIL SALES are forecasted to rise between 3,6 and 5,2%. XBOX & PS5 NEWS
All this while Europe will start to re-open again after a contraction of the economy due to the latest lockdowns. As they saw the Eurozone PMI falling by almost 4% in October. EUROZONE NEWS
Some good news came from STORE CAPITAL as the rent collections for November remained at 90% with no new tenants requiring deferrals, this suggests that companies are managing to survive even with the current restrictions in place.
We also saw reports that Janet Yellen will be the next Treasury pick as she would become the first person to be at the top of the FED the White House Council of Economic Advisers and the Treasury and she will become the first woman to lead the Treasury. TREASURY NEWS
Moving on, Tuesday we saw the DOW spike more than 1,5%, the SP500 rising 1,6% and the NASDAQ up more than 1,3% in what was a very good day for the stock market with more than 70% of companies advancing and 167 new highs on above average volume. The leaders were once again Energy and Financials, as this 2 sectors, will be two of the fastest benefiting from the end of the pandemic. The rally was continued with value companies leading the way for the 2nd straight day. You can struggle to find red spots in the HEAT MAP from Tuesday but there were a few in healthcare and real estate. This was the first time that the DOW closed over 30k. CHART / SECTORS / CHART
NIKOLA stock tumbled after the recent rally as the GM deal seems less likely every day, as the deadline for the deal is December 3rd.
While October HOME SEARCHES surged over 200% as a Redfin report shows, this leads me to believe that the strong housing demand will keep remaining at this levels for a good period of time.
On Wednesday we saw the stock market take a breather, as the DOW lost 0,6%, the SP500 lost 0,16% while the pandemic plays regained some momentum with the NASDAQ being up almost half a percent before the stock market closed for Thanksgiving.
About 54% of companies were losing ground with below average volume for the day, as Technology and consumer discretionary and staples were the gainers for the day. Value plays did see some normal corrections after the huge gains in the last days as investors were cashing out some money probably before the day off. CHART / SECTORS / CHART
Here is the HEAT MAP from Wednesday as only a couple of companies Like Amazon, Apple, Nvidia and Shopify were gaining, while the energy sector was the biggest laggard.
Also the AAII investor sentiment SURVEY from Wednesday showed that people are getting more bearish or bullish as the neutral feeling fell way below the historical average as bullishness remains very high. This is usually a contrarian indicator, as more bullishness gives me reason to take profits and bearishness to invest in the stock market, though I don’t have the same confidence in this as in the past, as I expect this market rally to last until the end of next year.
News came in from Delta Airlines as pilots approved pay cuts and lower guaranteed hours that could avoid more than 1700 pilots getting cut off. This are great news both for the company and the pilots, as air travel will pick up again in the next years. DELTA NEWS
Also, Deere reported blowout EARNINGS and a beat of more than 1$ per share and a revenue only 0,6% below last year while also issuing strong 2021 forecasts as they see the equipment sales climbing more than 10% compared to 2020 with a strong net income guidance of 3,6 to 4 billion $ compared to the May guidance of 1,6 to 2 billion $. 4Q 2020 / 2021
We closed the week on a short day on Friday as the NASDAQ led the way up 0,93%, the SP500 up 0,24% and the DOW barely up 0,13%. As we saw about 55% of the companies advancing on way below average volume due to the short day of trading with 85% of companies trading below average volumes. Friday was a pretty divided day as Health Care and Tech lead the way while Utilities and Energy saw a slight pullback after the big gains this week. SECTORS / CHART /
Here is the HEAT MAP from Friday as we see that the market was dragged higher by the big tech companies and communication services while the rest of the market was pretty much lagging.
So for the week, the Nasdaq lead the way up 3% and closed at the 45th record of 2020, the SP followed up 2,3% and closed a 26th record of the year with the DOW also rising 2% in this shortened week. While the VIX closed the week just below 21, at the lowest level since February.
So great signs for the recovery of the economy still popped up almost every day, as the stock market is more forward looking than it is a reflection of the current economic conditions. As November will likely be the 7th straight month of job gains, though they will be the fewest in number since the recovery of jobs has begun. NOVEMBER JOBS
Also, Bitcoin has seen its price drop from almost all-time highs at 19,5k down more than 3k before bouncing back to around 17k. The cryptocurrency was due for a correction as it had seen a huge rally in since Labor Day and this correction came as news popped of the Treasury attempting to rush out regulation on crypto-wallets. This would be a big negative factor for people who own Bitcoin not for just it’s value but for using it also. But we will have to wait and see as the Treasury boss will be replaced when the Presidency changes. BITCOIN NEWS / BITCOIN CHART
Some company news from Friday were that PALANTIR saw it’s stock plunge from all time high of 33,5$ to 27,6$ after Citron tweeted that they are shorting the stock with a 20$ price target. This are common tactics that short sellers use in my opinion to get the fast results they expected. Citron also got into a short position on NIO recently and that news also made the stock take a plunged but that has since recovered and even made new all time highs since.
Great news came for sports betting companies like DraftKings and Penn national as Canada seems to be going the same way as the US as legalizing sports betting advances more and more. CANADA NEWS
Also, Tesla has seen a huge spike in the last weeks since the SP500 news, and the stock might see another spike as Musk TWEETED that the full self-driving feature will be released wider in the next weeks as the company finally approaches the end of software development as they collect more and more data. Tesla has surpassed Berkshire and is now the 6th largest company in the US as the stock is up more than 600% year to date making Elon Musk the second richest person in the world behind only Bezos. The company will go into the SP500 index at about 80% of its total market value cap as the index only counts the free-floating shares. I believe we won’t see such a big spike in price when the company will be added to the SP in December, just like it happened with the stock split its more of a buy the news sell the event type of thing. As I expected the stock jumped over the previous all time highs and it might see a little correction when the event actually happens, but in the long run this a company that I will continue to own in my portfolio. TESLA CHART / MUSK WEALTH /
Next week we will have some interesting earnings reports that I expect to beat the estimates from companies like NEXT WEEK EARNINGS
AUTOHOME which is a company that has great potential as it trades at a low P/E, they offer leads and services for auto consumers in China and they have a very wide consumer base to spread to.
With ZOOM also expecting to report on Monday after the close, I recently just sold out of my position in Zoom. I think there is too much positive expectations for the company as it trade at almost 200 times earnings per shares.
Also, Salesforce are expected to announce earnings on Tuesday, as the company saw it’s stock tumble after the news of a possible acquiring of Slack. In the long run that will be a very good play for the company as they have continued to buy more and more companies that allows them to keep growing.
Other companies that are reporting and are very interesting to watch are CrowdStrike and OKTA also on Tuesday with DocuSign , Dollar General, Marvell and Snowflake reporting on Wednesday.
Good news came this Saturday for online retailers as sales jumped more than 20% on Black Friday and are expected to grow between 15 and 35% tomorrow as Cyber Monday may set a new record for online sales. RETAIL EXPECTATIONS
Here are the most important economic data that we are looking for in the next week as it will be a week full of numbers that may impact how the stock market reacts in the near future. Hopefully we will see an improvement in PMI and a decrease in jobless claims and many more improvments. NEXT WEEK ECONOMIC DATA
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion and other thoughts on the stock market!
Have a great and see you next time!

Wanna let everyone on the field know you're compensating for something, or just feeling like LARPing as the Bundeswehr today? This guns for you.
Limited edition G28s are already super rare in Canada, let alone one that has all of the appropriate accessories to match the real thing! Was built as a project and has never left the wall. Thats right, it has never been gamed.
So what makes it so special? Maybe its the G28 specific Schmidt&Bender replica scope (thats no longer in production by the way, good luck finding one), or the G28 specific suppressor, or the fact that it was fine tuned by the techs at Blackblitz with a wolverine reaper gen2? I have yet to see a G28 that has all three of these things in Canada, or the world even. This is truly one of the only ones in existence, the closest you'll ever get to finding a unicorn.
-Pictures- https://imgur.com/a/uRPY5tM Please note that a Hi-cap magazine and 2 Multicam fabric mag pouches are not seen in the picture, but will be included. Imgur has a tendency to butcher picture quality, so high quality pics will be sent to serious buyers.
-Parts & Accessories-

• Kitagawa Kogaku Seizosho - Bundeswehr G28 Rifle Scope PM II DMR 3-20*50 http://www.bunnyworkshop.com.hk/airsoft/Kitagawa-Kogaku-Seizosho-Bundeswehr-G28-Rifle-Scope-PM-II-DMR-3-20-50-Illumination-Scope Cost over $800 CAD with conversion, tax, and duties.
• Crusader G28 QD Silencer w/ flash hider https://www.redwolfairsoft.com/accessories-silencers-crusader-g28-qd-silencer.html
• 2x Multicam Kydex mag pouches w/ Molle mounting for bulky 417 mags https://www.kydexcustomsuk.com/rifle-magazine-carriers/hk417-mag-carrier
• 5x Midcap mags and 1x hicap mag
• All accessories that come with the Limited edition except the T1 Sunshade mount (added too much height to the gun for my liking) and bipod (I have thin arms and added too much weight). Both of these parts are available to buy separately online at some asian shops (KIC, mlemart, wgcshop)
• 1x 7.4V HPA Lipo battery
• 2x 1kg high quality bottles of HPA Bio BBs (0.4g)

-Internals-
Due to the weak gearbox design of the 417/G28, the only way to make this a reliable and laser shooting DMR was to convert it to HPA. Tech work was done over 8 months at blackblitz to test different HPA engines and conversion kits, and the Wolverine reaper gen 2 was found to have the best alignment.

• Wolverine Reaper Gen 2
• PDI Sus304 6.05mm Complete Barrel Set For HPA (W/ Chamber & PDI Bucking)-MAXX PRO Hopup chamber used https://blackblitzairsoft.myshopify.com/collections/aeg-hpa-inner-barrels/products/pdi-sus304-6-05mm-complete-barrel-set-w-chamber-pdi-bucking?variant=30975698993254
• OPTIONAL Unused Ninja Pro V2 68/4500 Carbon Fiber HPA tank for $200 extra

​
Price is $2200 firm, over $1000 in savings if you add everything up! Considering I saw stock LE G28 for $1700, you're getting a lot more for your money. Payment via e-transfer
The whole package is big and heavy, so local buyers are preferred. Shooting video will not be provided as I don't have a regulator and line with me, but I tested its functionality when I got it back from blackblitz months back and it worked just fine. I've got lots of sales under my belt and can provide vouches, if a local buyer has a reg&hose and wants to test before buying they can do so.
Thank you for coming to my TED talk

Score Media and Gaming Inc
TSE: SCR
OTC: TSCRF
It's already common knowledge sports betting is big in the North American market - and will continue to generate tons of revenue as states continue to legalize sports betting. Canada is following suit. Legislation will be passed Q1 2021 and we're soon going to see an influx of CANADIAN online betting. Basically all of Canada uses this app exclusively for sports and it is starting to become more popular in the United States
​

• 10M+ downloads on their sports media app with 4.7 stars on Google play store
• #1 sports app in Canada (#2 behind ESPN in the US) with 10% of Ontario's entire population that uses it
• theScore successfully began the multi-state expansion of its mobile sportsbook, theScore Bet, launching in both Colorado and Indiana in September
• theScore Bet secured market access to operate an online casino in New Jersey via a multi-year agreement with Twin River Worldwide Holdings Inc.
• Total views of theScore esports’ video content across all platforms reached a new all-time quarterly record of 292 million in Q4 F2020, year-over-year growth of 243%.
• Strong fucking balance sheet = increased flexibility for upfront investments in new markets (e.g., market access fees, infrastructure, etc.)
• theScore is competitively advantaged in Canada, vs. foreign operators, as a homegrown player with a strong brand, which we believe will afford it preferential treatment by regulators with early market access, thus paving the way for early market share gains
• theScore esports just recently has been named the exclusive English language broadcast partner for the League of Legends’ Demacia Championship, a marquee annual event featuring 24 of China’s top esports teams.

Long article, but I'm pretty confident a lot of this sketchy behaviour is occurring right on this very sub:
https://www.theglobeandmail.com/business/article-how-the-covid-19-pandemic-fuelled-a-boom-in-canadian-stock-promotion/
Cromwell Coulson, the CEO of New York-based stock trading platform OTC Markets Group, is getting sick and tired of trying to stomp out Canadian stock promotion scams.
OTC plays host to more than 10,000 early-stage speculative stocks and every day it publishes a list of companies it has identified as running misleading stock promotions. In 2019, 30 per cent of troubling campaigns were by Canadian companies.
But since the global outbreak of COVID-19 last winter, there has been a boom in pump and dump scams, in which shady promoters use any means necessary to push up the price of a company’s shares, then sell their stakes at huge profits just before the stock collapses. Those promoters often focus on a hot sector, be it mining, bitcoin, cannabis – and now, bogus coronavirus therapies.
This year, 44 per cent of problematic promos on the OTC were spearheaded by Canadians. One day in September, they made up all 10 of the stocks the platform flags daily as the most suspect.
Mr. Coulson says vulnerabilities in Canadian securities laws, the country’s patchwork system of provincial securities regulation and the lack of teeth to go after scam artists allow promotion schemes to flourish.
“Our goal is not to run a dating site where everybody is beautiful, and smart and rich. Our goal is that the market price of securities represents the value,” he said. “There is this industry of promotion [in Canada] that is very opaque. I would like to see much more transparency.”
In the United States, national regulatory oversight by Washington’s Securities and Exchange Commission (SEC) is much tougher than in Canada. As a result, Canadians – operating here or in other countries – have been behind many penny stock promotion scams for decades. Among the worst offenders in recent years, John Babikian, a.k.a. “The Wolf of Montreal,” who reportedly earned US$100-million manipulating penny stocks.
“This is not a new phenomenon,” said Steven Peikin, co-director of enforcement with the SEC until August. “There has been outsize involvement of Canadian nationals and Canadian issuers in microcap schemes.”
While greater powers and technological advances have enhanced the ability of Canadian regulators to pursue aggressive investigations, their track record in enforcement remains abysmal. The few offenders who are sanctioned are generally subject to temporary provincial bans from capital markets and non-enforceable fines.
In the most recent fiscal year ended March 31, Canadian regulators concluded just two pump and dump cases, levying $105,000 in fines. Only a handful of cases are currently open.
In the United States, since the beginning of the pandemic, the SEC has brought charges in six COVID-19 cases, in which companies or individuals allegedly made misleading statements about various treatments, tests and protective equipment, and issued 37 trading suspensions. Just this past summer, five Canadians were charged by the SEC in a US$160-million pump and dump swindle involving deceptive claims of therapies.
Canada’s four biggest regulatory bodies, by comparison, have brought only one enforcement case and issued two trading suspensions related to COVID-19. This despite a warning issued by regulators in April that they were seeing an uptick in pandemic-related investment scams. The Canadian Securities Administrators (CSA), an umbrella group that represents Canada’s 13 securities regulators, declined repeated requests for an interview.
“I have not seen much regulatory action in Canada,” said Joseph Groia, a former director of enforcement of the Ontario Securities Commission (OSC) and now one of Canada’s best-known securities litigators. “There’s a huge amount going on in the U.S.”
Why isn’t more happening here?
Over the past six months, The Globe and Mail interviewed more than 60 senior figures in regulation, litigation and law enforcement in North America, companies targeted by pump and dumps, a prolific white-collar whistle-blower, CEOs of stock exchanges, recipients of pump and dump materials, and stock promoters. As part of its investigation, The Globe also reviewed thousands of pages of disclosures and regulatory actions going back to 1987.
The results are frustrating in many respects. While the breakneck pace of technological advancement means many fraudsters will likely stay one step ahead of regulators, plenty can be done to break the chain. The big question: Does Canada have the will to do it?
Canada’s status as a haven for shady stock promotion is a function of market structure, history and culture. Our country has long had a heavy concentration of small resource companies that need to raise money early by going public – developing mines and oil reserves is capital intensive.
But a small public float and a cheap stock price also make these stocks vulnerable to manipulation. By the 1930s, Canada was already notorious for telephone boiler rooms that targeted investors across North America. The advent of the electronic information age in the 1990s made disseminating fraudulent information infinitely easier. The ease of remaining anonymous online also made it much harder to catch offenders.
And while misleading stock promotions used to be perpetrated mainly by company insiders, a growing number are now carried out by third-party shareholders.
This past June, the RCMP and two provincial securities regulators confirmed they were investigating a cross-country stock promotion scheme touting tiny B.C. mining company Crestview Exploration. Among the recipients of a nationally distributed pump and dump letter about Crestview was Cynthia Campbell, head of enforcement at the Alberta Securities Commission, as well as the author of this article and retired RCMP white-collar crime investigator Henry Tso.
“I have dealt with many of these files,” Mr. Tso said. “There’s tons of them. Stocks are being manipulated. There’s also lots of insider trading that never gets caught.”
Crestview executives were frustrated, too. “We had no part of it. We want no part of it. It is a disgusting form of promotion,” CEO Glen Watson said.
One of the biggest structural weaknesses in Canadian enforcement identified by many sources is the lack of a single Canadian securities regulator. The U.S., with a population of 328 million, has one federal securities act and one federal regulator. Canada, a country of 37.6 million, has 13 provincial and territorial regulators, and 13 disparate securities acts. Budgets, staffing and powers of enforcement also vary.
British Columbia has tougher laws around stock promotion than other provinces, in part because the Vancouver Stock Exchange, which was merged into the Canadian Venture Exchange in 1999, was long known as grand central for penny stock scams. Alberta can lay quasi-criminal charges directly on offenders, but many other provinces can’t. Whistle-blower rewards offered by regulators also vary, with Ontario offering up to $5-million, but some other provinces offering nothing. Enforcement bans in one province aren’t recognized in others.
The different rules across Canada and the lack of co-ordination mean that “wrongdoers can triage where they’re committing their wrongdoing based on the enforcement of various provincial regulators,” said Stephen Cohen, former associate director of enforcement for the SEC.
Maureen Jensen, chair of the Ontario Securities Commission until this past April, said Canada is a mess of bureaucracy, infighting between commissions and provincial politics. “The problem is you have 13 acts, 13 legislatures that decide whether what their securities commission is asking for is worth their effort and 13 different groups of advisers who have a different view on how easy it should be to prosecute people in the financial market,” she said.
“We should have a single securities regulator for Canada. It’s ludicrous that we don’t.”
But repeated pushes for a national regulator have stalled when all provinces failed to agree, the most recent under then-prime minister Stephen Harper’s majority government, elected in 2011.
Basic laws are also looser in Canada. In the U.S., paid stock promotion and amounts must be disclosed. In Canada, apart from B.C., paid promotion only has to be disclosed if it’s for “investor relations” services. There are many loopholes where payments don’t have to be disclosed – incredibly including campaigns that can be characterized as just “raising awareness” about a company.
Even if paid promotion is disclosed, the amount doesn’t have to be specified. “No one knows who’s being paid for what,” Ms. Jensen said. “People can promote and not be visible.”
The loose laws are one reason criminals still turn to Canadians for shifty stock promotion. In 2017, an individual indicted for securities fraud around a planned pump and dump of cannabis company BioCube Inc. told the FBI he intended on using Canadians to promote the U.S.-listed stock because regulation was much lighter here. U.S. authorities stopped the scheme before it occurred, and the CEO of the company was sentenced to three years in prison.
Even if pump and dump offenders are caught in Canada, prison time is extremely rare. Fines and temporary provincial bans from running companies are much more common, but many offenders simply don’t comply with them.
“These are people who don’t care about regulatory orders. There’s a good chance they’re not in that jurisdiction. If an order is made, they probably wouldn’t comply with it, " Mr. Groia said. “The only way you can deal with [a pump and dump] is find out who did it, track them down, prosecute them and send them to jail. Nothing else makes any sense.”
But that is much easier said than done.
Set up in 2003 to be the equivalent of the FBI’s white-collar crime unit, the RCMP’s Integrated Market Enforcement Team (IMET) was supposed to send more offenders to jail. Just two years later, the team staged a dramatic raid on Scotiabank’s headquarters on Bay Street, with a trailer-length van emblazoned with IMET’s logo and about a dozen police cars pulling up, and agents hauling out documents in connection with an investigation into one of the bank’s client companies.
The idea was to turn RCMP officers into specialized financial market cops by bringing in Bay Street experts, such as forensic accountants, to help IMET. Yet when The Globe asked the RCMP for examples of notable pump and dumps that resulted in convictions, the force only cited one in the past 17 years.
“The expectations and the hope that we would have a meaningful criminal enforcement program at the federal level have not come to pass,” Mr. Groia said. “IMET’s been a huge disappointment.”
Seattle-based whistle-blower Yolanda Holtzee has spent almost two decades reporting pump and dumps to U.S. and Canadian regulators. In her dealings with IMET, she has been frustrated by the turnover in staff. “Junior members are never there long enough to be proficient,” she said.
Vance Morgan, head of the biggest IMET team in Canada, says officers usually stay a minimum of three years, but many move afterward – some because they are promoted. One reason IMET’s record isn’t great, he says, is the lack of some extraordinary powers U.S. authorities have, including their ability to tap the federal terrorist act to obtain documents.
Other experts say Canadian exchanges could also do a lot more to cut down on shady stock promotion and could look to the U.S. for guidance.
If OTC Markets believes a company may be complicit in a promotion, or isn’t co-operating in disclosing additional information, it routinely slaps a “Caveat Emptor” label on the company and places a skull and crossbones icon beside its stock symbol on OTC’s website.
“We don’t want to fix things in the back room, " Mr. Coulson said. “We want to put it out for investors to see. All the positives and negatives. That’s an approach which, short term, is painful and others will knock, but over the long term [it] builds more efficient markets.”
Canada’s TSX Venture Exchange and Canadian Securities Exchange list many companies that also trade on OTC. But neither exchange comes anywhere close to shining such a harsh public spotlight on companies.
Senior figures in North American regulation also point to basic structural holes at Canada’s junior stock exchanges: low fees and lax rules that make it easy for promoters to game the system and virtually guarantee huge returns from taking tiny untested companies public.
The formula was established decades ago: Promoters identify a hot sector, acquire a dormant publicly traded shell company, change its name, issue “seed stock” to founders, do a few financing rounds at increasingly higher share prices, come up with a great “story” to sell to retail investors and, finally, take the company public. That gives the promoters the liquidity they need to sell at an enormous profit.
“[For] the people who kind of run these things as scams, it’s all about getting it listed, getting the share price up and getting off your stock,” said Jamie Keech, a mining engineer and resources financier.
Then there’s the matter – all perfectly legal – of testing the limits on how low companies can go when issuing seed stock. Founder shares have been issued at a cent a share, a tenth of a cent or even much less. Vancouver-based junior mining exploration company Fosterville South Exploration Ltd. issued 12.75 million shares for a total capital raise of $9. The cost for the founders was $0.00000705882 a share. When the company went public earlier this year, it closed its first day of trading on the TSX Venture Exchange at $1.08 a share, giving founders a paper return of 15,299,908 per cent.
“They’re using legal means to hoodwink the public” Ms. Jensen said of the ease of going public in Canada. “Is it wrong? Absolutely it’s wrong.” Yet, like too many weaknesses of Canadian markets, it endures.
So what can be done to stop the rot?
Ms. Jensen says, even under existing provincial laws, it needs to be easier for regulators to move on suspected fraudsters. That includes speeding up the timeline for obtaining court dates, the power to compel people to testify like the U.S. Department of Justice does, and possibly banning the use of shell companies to go public.
“It can’t be so difficult to prosecute people who are intentionally abusing the market, " Ms. Jensen said.
The whistle-blower, Ms. Holtzee, says that many pump and dumps are now perpetrated by computer geeks in their 20s who are proficient in spreading fraudulent information over the web, and then disappearing by using encryption. Canadian regulators, she says, need to hire young STEM (science, technology, engineering and mathematics) graduates – “dot connectors” – who can track scams as they’re being perpetrated and stop them right away.
Mr. Groia also believes much more money should be spent on detection rather than prosecution. He says by investing as little as $1-million a year in computer-savvy investigators, Canada could cut pump and dumps by 60 per cent to 70 per cent.
Some observers claim that stupid or ignorant investors are as much to blame as fraudsters for pump and dumps. If only they would vet an outlandish claim in a newsletter or on a stock promotion website against public filings, it would be obvious that a miracle COVID-19 cure is a con.
But that’s not easy. SEDAR, the website that houses public flings by Canadian companies, is terribly designed. Only sophisticated investors are likely to know where to find critical information and then make sense of it. Canadian regulators need to push companies to make it far easier for average citizens to find what they’re looking for, and for filings to be written in language that can be easily understood.
The past decade has seen pump and dump campaigns move from junior gold stocks, to marijuana, to bitcoin and back to gold recently with bullion prices soaring. And now there’s COVID-19.
Ms. Jensen said the latest trend involves crooks manipulating the share prices of illiquid companies by “hijacking” the trading accounts of investors, allowing scammers to use other people’s money directly to commit crimes.
The technology for those thefts exists. So does the technology to stop them. Unfortunately, it appears scammers and proponents of reform don’t think that will happen any time soon.

IMPORTANT—READ CAREFULLY: This End-User License Agreement (“EULA”) is a legal agreement between you (either an individual or a single entity) and Microsoft Corporation for the Microsoft software product identified above, which includes computer software and may include associated media, printed materials, “online” or electronic documentation, and Internet-based services (“Product”). An amendment or addendum to this EULA may accompany the Product. YOU AGREE TO BE BOUND BY THE TERMS OF THIS EULA BY INSTALLING, COPYING, OR OTHERWISE USING THE PRODUCT. IF YOU DO NOT AGREE, DO NOT INSTALL OR USE THE PRODUCT; YOU MAY RETURN IT TO YOUR PLACE OF PURCHASE FOR A FULL REFUND. 1. GRANT OF LICENSE. Microsoft grants you the following rights provided that you comply with all terms and conditions of this EULA: • Installation and use. You may install, use, access, display and run one copy of the Product on a single computer, such as a workstation, terminal or other device (“Workstation Computer”). 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After upgrading, you may no longer use the product that formed the basis for your upgrade eligibility. 3. ADDITIONAL SOFTWARE/SERVICES. This EULA applies to updates, supplements, add-on components, or Internet-based services components, of the Product that Microsoft may provide to you or make available to you after the date you obtain your initial copy of the Product, unless we provide other terms along with the update, supplement, add-on component, or Internet-based services component. Microsoft reserves the right to discontinue any Internet-based services provided to you or made available to you through the use of the Product. This EULA does not grant you any rights to use the Windows Media Format Software Development Kit (“WMFSDK”) components contained in the Product to develop a software application that uses Windows Media technology. If you wish to use the WMFSDK to develop such an application, visit http://msdn.microsoft.com/workshop/imedia/windowsmedia/sdk/wmsdk.asp, accept a separate license for the WMFSDK, download the appropriate WMFSDK, and install it on your system. 4. TRANSFER—Internal. You may move the Product to a different Workstation Computer. After the transfer, you must completely remove the Product from the former Workstation Computer. Transfer to Third Party. The initial user of the Product may make a one-time transfer of the Product to another end user. The transfer has to include all component parts, media, printed materials, this EULA, and if applicable, the Certificate of Authenticity. The transfer may not be an indirect transfer, such as a consignment. Prior to the transfer, the end user receiving the transferred Product must agree to all the EULA terms. No Rental. You may not rent, lease, lend or provide commercial hosting services to third parties with the Product. 07/27/2001 54834.1 5. LIMITATION ON REVERSE ENGINEERING, DECOMPILATION, AND DISASSEMBLY. You may not reverse engineer, decompile, or disassemble the Product, except and only to the extent that it is expressly permitted by applicable law notwithstanding this limitation. 6. TERMINATION. Without prejudice to any other rights, Microsoft may cancel this EULA if you do not abide by the terms and conditions of this EULA, in which case you must destroy all copies of the Product and all of its component parts. 7. DESCRIPTION OF OTHER RIGHTS AND LIMITATIONS. • NetMeeting/Remote Assistance/Remote Desktop Features. The Product contains NetMeeting, Remote Assistance, and Remote Desktop technologies that enable the Product or other applications installed on the Workstation Computer to be used remotely between two or more computers, even if the Product or application is installed on only one Workstation Computer. You may use NetMeeting, Remote Assistance, and Remote Desktop with all Microsoft products; provided however, use of these technologies with certain Microsoft products may require an additional license. For Microsoft and non-Microsoft products, you should consult the license agreement accompanying the applicable product or contact the applicable licensor to determine whether use of NetMeeting, Remote Assistance, or Remote Desktop is permitted without an additional license. • Consent to Use of Data. You agree that Microsoft and its affiliates may collect and use technical information gathered in any manner as part of the product support services provided to you, if any, related to the Product. Microsoft may use this information solely to improve our products or to provide customized services or technologies to you. Microsoft may disclose this information to others, but not in a form that personally identifies you. • Internet Gaming/Update Features. If you choose to utilize the Internet gaming or update features within the Product, it is necessary to use certain computer system, hardware, and software information to implement the features. By using these features, you explicitly authorize Microsoft or its designated agent to access and utilize the necessary information for Internet gaming and/or updating purposes. Microsoft may use this information solely to improve our products or to provide customized services or technologies to you. Microsoft may disclose this information to others, but not in a form that personally identifies you. • Internet-Based Services Components. The Product contains components that enable and facilitate the use of certain Internet-based services. You acknowledge and agree that Microsoft may automatically check the version of the Product and/or its components that you are utilizing and may provide upgrades or fixes to the Product that will be automatically downloaded to your Workstation Computer. • Security Updates. Content providers are using the digital rights management technology (“Microsoft DRM”) contained in this Product to protect the integrity of their content (“Secure Content”) so that their intellectual property, including copyright, in such content is not misappropriated. Owners of such Secure Content (“Secure Content Owners”) may, from time to time, request Microsoft to provide security related updates to the Microsoft DRM components of the Product (“Security Updates”) that may affect your ability to copy, display and/or play Secure Content through Microsoft software or third party applications that utilize Microsoft DRM. You therefore agree that, if you elect to download a license from the Internet which enables your use of Secure Content, Microsoft may, in conjunction with such license, also download onto your computer such Security Updates that a Secure Content Owner has requested that Microsoft distribute. Microsoft will not retrieve any personally identifiable information, or any other information, from your computer by downloading such Security Updates. 8. NOT FOR RESALE SOFTWARE. Product identified as “Not for Resale” or “NFR,” may not be resold, transferred or used for any purpose other than demonstration, test or evaluation. 9. ACADEMIC EDITION SOFTWARE. To use Product identified as “Academic Edition” or “AE,” you must be a “Qualified Educational User.” For qualification-related questions, please contact the Microsoft Sales Information CenteOne Microsoft Way/Redmond, WA 98052-6399 or the Microsoft subsidiary serving your country. 10. EXPORT RESTRICTIONS. You acknowledge that the Product is of U.S. origin and subject to U.S. export jurisdiction. You agree to comply with all applicable international and national laws that apply to the Product, including the U.S. Export Administration Regulations, as well as end-user, end-use, and destination restrictions issued by U.S. and other governments. For additional information see . 07/27/2001 54834.1 11. LIMITED WARRANTY FOR PRODUCT ACQUIRED IN THE US AND CANADA. Microsoft warrants that the Product will perform substantially in accordance with the accompanying materials for a period of ninety days from the date of receipt. If an implied warranty or condition is created by your state/jurisdiction and federal or state/provincial law prohibits disclaimer of it, you also have an implied warranty or condition, BUT ONLY AS TO DEFECTS DISCOVERED DURING THE PERIOD OF THIS LIMITED WARRANTY (NINETY DAYS). AS TO ANY DEFECTS DISCOVERED AFTER THE NINETY (90) DAY PERIOD, THERE IS NO WARRANTY OR CONDITION OF ANY KIND. Some states/jurisdictions do not allow limitations on how long an implied warranty or condition lasts, so the above limitation may not apply to you. Any supplements or updates to the Product, including without limitation, any (if any) service packs or hot fixes provided to you after the expiration of the ninety day Limited Warranty period are not covered by any warranty or condition, express, implied or statutory. LIMITATION ON REMEDIES; NO CONSEQUENTIAL OR OTHER DAMAGES. Your exclusive remedy for any breach of this Limited Warranty is as set forth below. Except for any refund elected by Microsoft, YOU ARE NOT ENTITLED TO ANY DAMAGES, INCLUDING BUT NOT LIMITED TO CONSEQUENTIAL DAMAGES, if the Product does not meet Microsoft’s Limited Warranty, and, to the maximum extent allowed by applicable law, even if any remedy fails of its essential purpose. The terms of Section 13 below (“Exclusion of Incidental, Consequential and Certain Other Damages”) are also incorporated into this Limited Warranty. Some states/jurisdictions do not allow the exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you. This Limited Warranty gives you specific legal rights. You may have others which vary from state/jurisdiction to state/jurisdiction. YOUR EXCLUSIVE REMEDY. Microsoft’s and its suppliers’ entire liability and your exclusive remedy shall be, at Microsoft’s option from time to time exercised subject to applicable law, (a) return of the price paid (if any) for the Product, or (b) repair or replacement of the Product, that does not meet this Limited Warranty and that is returned to Microsoft with a copy of your receipt. You will receive the remedy elected by Microsoft without charge, except that you are responsible for any expenses you may incur (e.g. cost of shipping the Product to Microsoft). This Limited Warranty is void if failure of the Product has resulted from accident, abuse, misapplication, abnormal use or a virus. Any replacement Product will be warranted for the remainder of the original warranty period or thirty (30) days, whichever is longer. Outside the United States or Canada, neither these remedies nor any product support services offered by Microsoft are available without proof of purchase from an authorized international source. To exercise your remedy, contact: Microsoft, Attn. Microsoft Sales Information CenteOne Microsoft Way/Redmond, WA 98052-6399, or the Microsoft subsidiary serving your country. LIMITED WARRANTY FOR PRODUCT ACQUIRED OUTSIDE THE US OR CANADA. FOR THE LIMITED WARRANTIES AND SPECIAL PROVISIONS PERTAINING TO YOUR PARTICULAR JURISDICTION, PLEASE REFER TO YOUR WARRANTY BOOKLET INCLUDED WITH THIS PACKAGE OR PROVIDED WITH THE SOFTWARE PRODUCT PRINTED MATERIALS. 12. DISCLAIMER OF WARRANTIES. The Limited Warranty that appears above is the only express warranty made to you and is provided in lieu of any other express warranties (if any) created by any documentation, packaging, or other communications. Except for the Limited Warranty and to the maximum extent permitted by applicable law, Microsoft and its suppliers provide the Product and support services (if any) AS IS AND WITH ALL FAULTS, and hereby disclaim all other warranties and conditions, either express, implied or statutory, including, but not limited to, any (if any) implied warranties, duties or conditions of merchantability, of fitness for a particular purpose, of reliability or availability, of accuracy or completeness of responses, of results, of workmanlike effort, of lack of viruses, and of lack of negligence, all with regard to the Product, and the provision of or failure to provide support or other services, information, software, and related content through the Product or otherwise arising out of the use of the Product. ALSO, THERE IS NO WARRANTY OR CONDITION OF TITLE, QUIET ENJOYMENT, QUIET POSSESSION, CORRESPONDENCE TO DESCRIPTION OR NON-INFRINGEMENT WITH REGARD TO THE PRODUCT. 13. EXCLUSION OF INCIDENTAL, CONSEQUENTIAL AND CERTAIN OTHER DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL MICROSOFT OR ITS 07/27/2001 54834.1 SUPPLIERS BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER (INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR LOSS OF PROFITS OR CONFIDENTIAL OR OTHER INFORMATION, FOR BUSINESS INTERRUPTION, FOR PERSONAL INJURY, FOR LOSS OF PRIVACY, FOR FAILURE TO MEET ANY DUTY INCLUDING OF GOOD FAITH OR OF REASONABLE CARE, FOR NEGLIGENCE, AND FOR ANY OTHER PECUNIARY OR OTHER LOSS WHATSOEVER) ARISING OUT OF OR IN ANY WAY RELATED TO THE USE OF OR INABILITY TO USE THE PRODUCT, THE PROVISION OF OR FAILURE TO PROVIDE SUPPORT OR OTHER SERVICES, INFORMATON, SOFTWARE, AND RELATED CONTENT THROUGH THE PRODUCT OR OTHERWISE ARISING OUT OF THE USE OF THE PRODUCT, OR OTHERWISE UNDER OR IN CONNECTION WITH ANY PROVISION OF THIS EULA, EVEN IN THE EVENT OF THE FAULT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF CONTRACT OR BREACH OF WARRANTY OF MICROSOFT OR ANY SUPPLIER, AND EVEN IF MICROSOFT OR ANY SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 14. LINKS TO THIRD PARTY SITES. You may link to third party sites through the use of the Product. The third party sites are not under the control of Microsoft, and Microsoft is not responsible for the contents of any third party sites, any links contained in third party sites, or any changes or updates to third party sites. Microsoft is not responsible for webcasting or any other form of transmission received from any third party sites. Microsoft is providing these links to third party sites to you only as a convenience, and the inclusion of any link does not imply an endorsement by Microsoft of the third party site. 15. LIMITATION OF LIABILITY AND REMEDIES. Notwithstanding any damages that you might incur for any reason whatsoever (including, without limitation, all damages referenced above and all direct or general damages), the entire liability of Microsoft and any of its suppliers under any provision of this EULA and your exclusive remedy for all of the foregoing (except for any remedy of repair or replacement elected by Microsoft with respect to any breach of the Limited Warranty) shall be limited to the greater of the amount actually paid by you for the Product or U.S.$5.00. The foregoing limitations, exclusions and disclaimers (including Sections 11, 12 and 13 above) shall apply to the maximum extent permitted by applicable law, even if any remedy fails its essential purpose. 16. U.S. GOVERNMENT LICENSE RIGHTS. All Product provided to the U.S. Government pursuant to solicitations issued on or after December 1, 1995 is provided with the commercial license rights and restrictions described elsewhere herein. All Product provided to the U.S. Government pursuant to solicitations issued prior to December 1, 1995 is provided with “Restricted Rights” as provided for in FAR, 48 CFR 52.227-14 (JUNE 1987) or DFAR, 48 CFR 252.227-7013 (OCT 1988), as applicable. 17. APPLICABLE LAW. If you acquired this Product in the United States, this EULA is governed by the laws of the State of Washington. If you acquired this Product in Canada, unless expressly prohibited by local law, this EULA is governed by the laws in force in the Province of Ontario, Canada; and, in respect of any dispute which may arise hereunder, you consent to the jurisdiction of the federal and provincial courts sitting in Toronto, Ontario. If this Product was acquired outside the United States, then local law may apply. 18. ENTIRE AGREEMENT. This EULA (including any addendum or amendment to this EULA which is included with the Product) are the entire agreement between you and Microsoft relating to the Product and the support services (if any) and they supersede all prior or contemporaneous oral or written communications, proposals and representations with respect to the Product or any other subject matter covered by this EULA. To the extent the terms of any Microsoft policies or programs for support services conflict with the terms of this EULA, the terms of this EULA shall control. 19. The Product is protected by copyright and other intellectual property laws and treaties. Microsoft or its suppliers own the title, copyright, and other intellectual property rights in the Product. The Product is licensed, not sold. Si vous avez acquis votre produit Microsoft au CANADA, la garantie limitée suivante vous concerne : GARANTIE LIMITÉE Microsoft garantit que le Produit fonctionnera conformément aux documents qui l’accompagnent pendant une période de 90 jours suivant la date de réception. Si une garantie ou condition implicite est créée par votre État ou votre territoire et qu’une loi fédérale, provinciale ou étatique en interdit le déni, vous jouissez également d’une garantie ou condition implicite, MAIS UNIQUEMENT POUR LES DÉFAUTS DÉCOUVERTS DURANT LA PÉRIODE DE LA PRÉSENTE GARANTIE LIMITÉE (QUATRE-VINGT-DIX JOURS). IL N’Y A AUCUNE GARANTIE OU CONDITION DE QUELQUE NATURE QUE CE SOIT QUANT AUX DÉFAUTS DÉCOUVERTS APRÈS CETTE PÉRIODE DE QUATREVINGT-DIX JOURS. Certains États ou territoires ne permettent pas de limiter la durée d’une garantie ou condition implicite de sorte que la limitation cidessus peut ne pas s’appliquer à vous. Tous les suppléments ou toutes les mises à jour relatifs au Produit, y compris notamment (le cas échéant), tous les ensembles de services ou les réparations à chaud qui vous sont fournis après l’expiration de la période de quatre-vingt-dix jours de la garantie limitée ne sont pas couverts par quelque garantie ou condition que ce soit, expresse,implicite ou en vertu de la loi. 07/27/2001 54834.1 LIMITATION DES RECOURS; ABSENCE DE DOMMAGES INDIRECTS OU AUTRES. Votre recours exclusif pour toute violation de la présente garantie limitée est décrit ci-après. Sauf pour tout remboursement au choix de Microsoft, si le Produit ne respecte pas la garantie limitée de Microsoft et, dans toute la mesure permise par le droit applicable, même si tout recours n’atteint pas son but essentiel,VOUS N’AVEZ DROIT À AUCUNS DOMMAGES, NOTAMMENT DES DOMMAGES INDIRECTS. Les modalités de la clause «Exclusion des dommages accessoires, indirects et de certains autres dommages » sont également incorporées à la présente garantie limitée. Certains États ou territoires ne permettent pas l’exclusion ou la limitation des dommages indirects ou accessoires de sorte que la limitation ou l’exclusion ci-dessus peut ne pas s’appliquer à vous. La présente garantie limitée vous donne des droits légaux spécifiques. Vous pouvez avoir d’autres droits qui peuvent varier d’un territoire ou d’un État à un autre. VOTRE RECOURS EXCLUSIF. La responsabilité intégrale de Microsoft et de ses fournisseurs et votre recours exclusif seront, selon le choix de Microsoft de temps à autre sous réserve de toute loi applicable, a) le remboursement du prix payé, le cas échéant, pour le Produit ou b) la réparation ou le remplacement du Produit qui ne respecte pas la présente garantie limitée et qui est retourné à Microsoft avec une copie de votre reçu. Vous recevrez la compensation choisie par Microsoft, sans frais, sauf que vous êtes responsable des dépenses que vous pourriez engager (p. ex., les frais d’envoi du Produit à Microsoft). La présente garantie limitée est nulle si la défectuosité du Produit est causée par un accident, un usage abusif, une mauvaise application, un usage anormal ou un virus. Tout Produit de remplacement sera garanti pour le reste de la période de garantie initiale ou pendant trente (30) jours, selon la plus longue entre ces deux périodes. À l’extérieur des États-Unis ou du Canada, ces recours ou l’un quelconque des services de soutien technique offerts par Microsoft ne sont pas disponibles sans preuve d’achat d’une source internationale autorisée. Pour exercer votre recours, vous devez communiquer avec Microsoft et vous adresser au Microsoft Sales Information CenteOne Microsoft Way/Redmond, WA 98052-6399, ou à la filiale de Microsoft de votre pays. DÉNI DE GARANTIES. La garantie limitée qui apparaît ci-dessus constitue la seule garantie expresse qui vous est donnée et remplace toutes autres garanties expresses (s’il en est) mentionnées dans tout document, emballage ou autre communication. Sauf en ce qui a trait à la garantie limitée et dans toute la mesure permise par le droit applicable, le Produit et les services de soutien technique (le cas échéant) sont fournis TELS QUELSET AVEC TOUS LEURS DÉFAUTS par Microsoft et ses fournisseurs, lesquels par les présentes dénient toutes autres garanties et conditions expresses, implicites ou en vertu de la loi, y compris notamment (le cas échéant) les garanties, devoirs ou conditions implicites de qualité marchande, d’adaptation à une fin particulière, de fiabilité ou disponibilité, d’exactitude ou d’exhaustivité des réponses, des résultats, des efforts déployés selon les règles de l’art, d’absence de virus et de négligence, le tout à l’égard du Produit et de la prestation des services de soutien technique ou autres services ou du défaut de fournir une telle prestation, de l’information, du logiciel, et de tout contenu s’y rapportant à travers le Produit ou autrement découlant de l’utilisation du Produit. PAR AILLEURS, IL N’Y A AUCUNE GARANTIE OU CONDITION QUANT AU TITRE DE PROPRIÉTÉ, À LA JOUISSANCE OU LA POSSESSION PAISIBLE, À LA CONCORDANCE À UNE DESCRIPTION NI QUANT À UNE ABSENCE DE CONTREFAÇON CONCERNANT LE PRODUIT. EXCLUSION DES DOMMAGES ACCESSOIRES, INDIRECTS ET DE CERTAINS AUTRES DOMMAGES. DANS TOUTE LA MESURE PERMISE PAR LE DROIT APPLICABLE, EN AUCUN CAS MICROSOFT OU SES FOURNISSEURS NE SERONT RESPONSABLES DES DOMMAGES SPÉCIAUX, ACCESSOIRES, EXEMPLAIRES OU INDIRECTS DE QUELQUE NATURE QUE CE SOIT (Y COMPRIS NOTAMMENT, LES DOMMAGES À L’ÉGARD DE LA PERTE DE PROFITS OU DE LA DIVULGATION DE RENSEIGNEMENTS CONFIDENTIELS OU AUTRES, DE L’INTERRUPTION DES AFFAIRES, DE BLESSURES CORPORELLES, DE LA VIOLATION DE LA VIE PRIVÉE, DE L’OMISSION DE REMPLIR TOUT DEVOIR, Y COMPRIS D’AGIR DE BONNE FOI OU D’EXERCER UN SOIN RAISONNABLE, DE LA NÉGLIGENCE ET DE TOUTE AUTRE PERTE PÉCUNIAIRE OU AUTRE PERTE DE QUELQUE NATURE QUE CE SOIT) DÉCOULANT OU SE RAPPORTANT DE QUELQUE MANIÈRE QUE CE SOIT À L’UTILISATION DU PRODUIT OU À L’INCAPACITÉ DE S’EN SERVIR, À LA PRESTATION DE SERVICES DE SOUTIEN TECHNIQUE OU AUTRES SERVICES OU À L’OMISSION D’UNE TELLE PRESTATION , À L’INFORMATION, AU LOGICIEL ET À TOUT CONTENU S’Y RAPPORTANT À TRAVERS LE PRODUIT OU AUTREMENT DÉCOULANT DE L’UTILISATION DU PRODUIT OU AUTREMENT AUX TERMES DE TOUTE DISPOSITION DU PRÉSENT CONTRAT OU RELATIVEMENT À UNE TELLE DISPOSITION, MÊME EN CAS DE FAUTE, DE DÉLIT CIVIL (Y COMPRIS LA NÉGLIGENCE), DE RESPONSABILITÉ STRICTE, DE VIOLATION DE CONTRAT OU DE VIOLATION DE GARANTIE DE MICROSOFT OU DE TOUT FOURNISSEUR ET MÊME SI MICROSOFT OU TOUT FOURNISSEUR A ÉTÉ AVISÉ DE LA POSSIBILITÉ DE TELS DOMMAGES. LIMITATION DE RESPONSABILITÉ ET RECOURS. Malgré les dommages que vous puissiez subir pour quelque motif que ce soit (y compris notamment, tous les dommages susmentionnés et tous les dommages directs ou généraux), la responsabilité intégrale de Microsoft et de l’un ou l’autre de ses fournisseurs aux termes de toute disposition du présent contrat et votre recours exclusif à l’égard de tout ce qui précède (sauf en ce qui concerne tout recours de réparation ou de remplacement choisi par Microsoft à l’égard de tout manquement à la garantie limitée) se limite au plus élevé entre les montants suivants : le montant que vous avez 07/27/2001 54834.1 réellement payé pour le Produit ou 5,00 $US. Les limites, exclusions et dénis qui précèdent (y compris les clauses ci-dessus), s’appliquent dans la toute la mesure permise par le droit applicable, même si tout recours n’atteint pas son but essentiel. La présente Convention est régie par les lois de la province d’Ontario, Canada. Vous reconnaissez irrévocablement par la présente la compétence des tribunaux de la province d’Ontario et consentez à instituer tout litige qui pourrait découler de la présente auprès des tribunaux fédéraux ou provinciaux ayant juridiction pour la ville de Toronto, province d’Ontario.