Business Warrior Corp. (OTC: BZWR) stock is defying the bearish sentiment. Its stock jumped more than 14% after announcing its acquisition of Alchemy Technologies, a global FinTech Software-as-a-Service (SaaS) company. But the better news- once investors get more time to digest just how transformative this deal can be, the $BZWR rally may be far from over.
In fact, that's a likely scenario, with BZWR catching an impressive bid last week despite steep declines in the Dow 30 and Nasdaq, respectively. That selfish bull market showed that risk is not off when it comes to this micro-cap player. On the contrary, the move made by BZWR showed that whether markets are red or green, the path of least resistance may be the appreciable upside.
Video Link: https://www.youtube.com/embed/D0Hi1y08JNI
A Valuation Disconnect Too Good To Ignore
Those following PrimeTime Profiles were exposed to the investment consideration two weeks ago when the valuation disconnect was more pronounced. While that gap has tightened, a sum of BZWR's parts indicates plenty more room to trade higher.
In fact, BZWR just added more firepower, announcing its acquisition of Alchemy Technologies, a company that immediately strengthens Business Warrior's core marketing and lending software platforms. It also expands business opportunities, is timely, and meets a surge in global demand from small businesses that need what BZWR is selling.
Not only that; new revenues will be more than accretive, they should come quickly, which should drive shareholder value value higher in the process. Actually, it does more.
Adding Strength Through Acquisition
Like its partnership with Bottom Line Savings announced last week, this deal also increases BZWR's ability to deliver premium value to small-business clients through lending programs.
In particular to its acquisition of Alchemy Technologies, BZWR will tap into Alchemy's specialized services that include creating end-to-end, cloud-native lending experiences for other FinTech companies, merchants, and banks. And as a global FinTech software-as-a-service (SaaS) company, it further brings under the BZWR brand additional core solution verticals to clients, including personal loans, point of sale financing, health and beauty financing, construction loans, and solar and home improvement financing. That's not all.
Additional revenue-generating initiatives can drive shareholder value higher through Small Business Lending, Skillset Financing, and Crowdfunding Platforms. Simply put, with this acquisition following its deal with Bottom Line Savings, BZWR is better positioned than ever for a surge in growth this year. The better news is that results could come sooner than later.
Remember, BZWR worked with Alchemy to develop its Business Warrior Funding lending platform earlier this year, which because of their operational and financial performance, took the next step to acquire. By the way, Alchemy is no small company.
On the contrary, they are a global business with customers in six countries and territories, including the United States, Mexico, United Arab Emirates, Australia, United Kingdom, and Puerto Rico. Revenues in 2021 reached $2.8 million, but this year they expect to increase YoY revenues by 77% compared to 2021 from the expansion of its interests.
Shifting Into Hypergrowth
Thus, while BZWR was already growing at an impressive pace, this deal puts them in hypergrowth. It also puts into play the massive potential of capitalizing quickly on international market opportunities. And by combining its Business Warrior platform that provides premium marketing with a more substantial global lending technology presence through Alchemy, its mission to deliver solutions that accelerate the growth and success of its small-business clients is expedited.
Business Warrior noted that Alchemy will remain under its current brand name and continue supporting its clients and internal teams. Alchemy brings impressive assets and infrastructure, with more than 30 full-time employees and over 100 full-time contracted developers driving growth. Combined with the Business Warrior team, the company now has 157 professionals focused on a singular mission: to be the source of success and long-term growth for small businesses through marketing technology and unique funding solutions.
BZWR disclosed the terms of the deal, saying that the agreement closed with a price tag of $8.75 million with $2.25 million in cash and $5 million in preferred stock with a 7%, three-year cash dividend. In addition, $450,000 in restricted common stock will go to existing Alchemy employees that will vest over 24 months. That amount paid indicates one thing- value is inherent to the deal. Better yet, revenues are already starting to flow into the BZWR coffers.
Hence, while a bullish case for investment consideration was made for BZWR before the deal with Alchemy, the value proposition just became significantly more attractive. So much so that at roughly $0.025 a share, BZWR stock on a revenue multiple alone is simply too good to ignore. And seeing how its stock can react on a week when broader markets were down appreciably, when the bulls return, BZWR could be a top attraction for micro-cap investors looking for undervalued opportunities positioned to deliver potentially exponential returns.
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