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Blue Diamond Ven Rg (OTCMKTS: BLDV) On An Acquisition Spree

Blue Diamond Ven Rg (OTCMKTS: BLDV) On An Acquisition Spree
Written by
Jarrod Wesson
Published on
April 24, 2017
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We found a new company driving investors' attention. It is called ‘Blue Diamond Ventures, Inc.’ (OTCMKT:BLDV), and it is an opportunity seeker in emerging growth industries, such as agriculture, renewable energies and natural holistic products. If your first thought was that it is a holding company. Yes, you are correct. The business executives running this business will use this business entity incorporated in Colorado to acquire another business with outstanding growth, obtain the returns derived from their operations and sell them once the industry becomes mature. In this article, you will find an analysis of the recent acquisitions. First of all, have a look at the recent price action.Source Subsidiaries and business divisionsThe following companies are part of the Blue Diamond family:

  • Blue Diamond Consulting, LLC and Michigan Plant Technologies, LLC: both sell and distribute products within the field of "Green Agriculture, Renewable Energies, Traditional, Industrial and Medicinal Crop Cultivation and Commercial and Consumer Products". Additionally, both companies are also involved in Cannabis Industry and expect to profit from its legalization in California, Colorado and Canada. Hence, this stock, like many others noted on this website, has very interesting catalyst. The holding company owns 100% interest in both companies.
  • Clean 1st LLC: it provides Janitorial Services to cannabis producers to kill and prevent mold, mildew, and bacteria. The company is the owner of the brand ‘Cannabis Clean’. Blue Diamond Ventures, Inc. owns 20% interest in the company.
  • United Sustainable Technologies, which is a business division of Michigan Plant Technologies, markets and sells products from Green Earth Nano. These products consist of natural organic plant based cleaners, plant nutrition and insecticides. Additionally, this partner acquired rights to market the Energy Saving Software & Hardware of ZENO Controls and VERVE Living Systems.

Source

  • Bot Bakery is another division of Michigan Plant Technologies specialized in the manufacturing and marketing of Vegan / Gluten Free products on a wholesale basis. In the last annual report, the company announced that it was opening up its first retail store in Chicago.

Acquisitions and use of sharesWe saw in the annual report that the company is growing at a high pace, acquiring a large amount of businesses, most of them related to the growing cannabis industry.First, in 2015, the company acquired KICKIN’ GRASS LLP; a holding company buying, selling and leasing commercial real estate in Utah to agricultural-related companies. The company paid five million restricted shares of common stock to acquire this business unit. The deal was quite successful, as some months later, it was announced that the company had sold a 13,000 square foot warehouse in Utah, owned by its subsidiary Kickin Grass, LLP. We believe that the company saw an arbitrage opportunity and bought the subsidiary for less than the value of its real estate properties:

"The company will provide details of these measures, along with the finalization of the sale of a 13,000 square foot warehouse in Utah by its subsidiary Kickin Grass, LLP in its Annual Report to OTC Markets." Source

In 2015, the company also issued 15 million shares to sign an agreement with 510nano, Inc. Under this agreement, 510nano and Green Power Partners will provide, in collaboration with Blue Diamond, Commercial Rooftop Solar Power and Solar Thermal Generation Systems. It is a joint venture between the three companies. We researched for the information about the project and saw that the person is charge has a lot of expertise in the field:

"The joint venture is named Your Energy Solution-Solar (YES). YES-Solar is led by Dr. Reginald Parker, Sr., PhD, and MBA. Dr. Parker holds a BS and Ph.D. in Engineering from MIT and Georgia Tech, respectively, and a MBA from Florida State University. Dr. Parker has led 510 Nano for the past 10 years and has developed new technology and deployed renewable energy power plants on both coasts." Bloomberg

In 2016, the number of acquisitions was larger and the company prefered to acquire the whole business instead of collaborating with other stakeholders. In April 2016, the holding acquired assets of Blue Diamond Consulting, LLC. formerly Green Science Inc., for 20 million shares. The same month, other businesses are acquired and paid using shares:

  • 40% Equity position in Now Brands LLC for 14 million shares.
  • 100% of Michigan Plant Technologies, LLC for 20 million shares

Finally, in September 2016, the company acquired the rights to commercialize products from Zeno Controls, Inc., for 7 Million.The market reaction to these announcements was not substantial. The company seemed to be quite unknown in the years 2015 and 2016. We believe that it was in 2017, when traders started to take more seriously the acquisitions made by the company. Another thesis is that the Cannabis sector exploded in the second part of 2016 and 2017 and traders did not realize that the company had made investments in this sector until now.SourceRecent news and market reactionThe most recent news was announced on April 20, 2017. The company did a joint development agreement with Alternative Medical Solutions Inc., under which both companies will start to import and export medical cannabis products to and from Canada. Alternative Medical Solutions is close to obtaining the license to grow and market medicinal cannabis products in Canada. BLDV is helping the company and will provide financing for a 50 thousand square foot cultivation facility. Joshua B. Alper, CEO of BLDV stated the following about the project:

"This new effort will ensure that AMS, when licensed, will be a Global Project, with their products being available worldwide and with access to the ingredients and technology that will continue to make AMS a leader in the Canadian market." Source

ConclusionBlue Diamond Ventures has been working on new acquisitions for the last three years, but it seems to be now the market is taking the company seriously. It has acquired a large amount of assets and subsidiaries operating in the Cannabis industry and has, therefore, developed a large expertise in the field. The new joint venture with Alternative Medical Solutions Inc. will give the Colorado company exposure to the Canadian market. Hence, the potential revenues have largely multiplied. We recommend you to have a look at the firm's website or subscribe to our email services as BLDV looks to be a compelling story among small caps. We will be updating our subscribers as soon as we know more. For the latest updates on BLDV, sign up below!Disclosure: We have no position in BLDV and have not been compensated for this article.

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