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BYND Cannasoft Speeds Mission To Bring AI-Empowered Wellness Products To Market ($BYND)
(Sponsored on behalf of BYND Cannasoft)
BYND Cannasoft Enterprise (NASDAQ: BCAN) (CSE: BYND), for many reasons, presents an attractive investment thesis. Foremost, they are working to exploit a niche market opportunity in the personal wellness products market. That's a multi-billion dollar market. But, more importantly, from an investor's perspective, they are doing so with AI-empowered technology, which in today's market is earning higher multiples. Combining those factors, the more appropriate method of appraising the BCAN value proposition is by factoring the sum of its parts. Doing so and accounting for intrinsic and inherent potential exposes a valuation disconnect worthy of immediate consideration.
In fact, with shares at $1.28 on Monday, off its 52-week high of $4.80, despite being better positioned today for growth compared to then, taking advantage of this disconnect sooner than later may be wise. That bullish sentiment is warranted, considering that BCAN targets a niche where others aren't. And better still, is leveraging AI-empowered technology to capitalize on revenue-generating potential from an expected $62.2 billion sensual wellness product sales opportunity by 2030.
Emerging From Under The Radar
Its IP could expand that potential, facilitating BCAN to seize broader monetization of its portfolio to earn a larger slice of an AI market expected to surge to $1.5 trillion by 2030. And with Yahoo! Finance statistics showing insiders owning over 74% of the company's shares, it exposes the alignment of insider's interests with its common shareholders, likely inspiring creating shareholder value sooner than later.
That's a mission in progress. And it's one where if the results from its sensual wellness products penetrate a device market opportunity faster than expected, BCAN stock could be on the pathway to matching the massive percentage gains scored by other companies from investors' interest in AI companies, including Advanced Micro Devices (NASDAQ: AMD), NVIDIA (NASDAQ: NVDA), and Palantir (NASDAQ: PLTR). Clearly, those companies target different market opportunities. But the common thread driving their valuations higher is their advancing AI-empowered technology. BCAN believes it can leverage its IP portfolio and products to score similar gains.
Maybe so. After all, BCAN does have the right ingredients to support a significantly higher valuation, including a compelling product, robust pipeline, and IP portfolio. They also have capital from a successful $2.6 million capital raise that puts BCAN in its best-ever position to expedite an ambitious 2023 agenda. Ironically, that capital raise, which strengthens BCAN, was the cause of its recent share price decline, noting the discounted share price needed to close the deal. Of course, that's not uncommon among microcaps raising money. But the terms provided do help to expose opportunity. In this case, investors paid roughly 15% more for their shares at current BCAN prices.
Supporting The Case For Higher Valuation
Still, they own only a fraction of the total shares outstanding. Additionally, outside of that deal, investors paid over double BCAN's current $1.29 price just two weeks ago, with the stock holding considerable support at over $3.00 throughout June. They, too, recognized value at higher prices. BCAN supports their calculus focused on a revenue-generating opportunity through AI that isn't more of the same. Instead, they target the income potential from AI-empowered, interactive wearables and technology that can revolutionize the sector. Better still, with impressive and accumulating IP, BCAN is doing more than seizing opportunities; it's strengthening the likelihood of keeping competitors at a distance. That's a value driver in and of itself. And considering that only about nine million shares trade in its public float, according to MarketWatch, the upside potential could accrue quickly from expected milestones reached, especially those that can preserve market share.
That's not all. Insider interest is significant. According to Yahoo! Finance on 7/28/23, insiders own over 73% of the outstanding stock, which, as stated, aligns management and insider interests with common shareholders. Notable, too, based on recent positive updates on patent applications, it's unlikely those shares will be separated from them anytime soon. In other words, an already small float and tightly held shares could create a supply and demand imbalance that favors LONG side investors.
Strengthening An Already Impressive IP Portfolio
And that case is getting stronger, most recently from the value inherent to BCAN's recently filed Patent Cooperation Treaty (PCT) application for their EZ-G. It's a game-changing device utilizing AI and sensors to provide a more sensual user experience. A positive update on that application could unleash significant upside potential, noting it could be a first-to-market product in an emerging category.
Remember, early movers are generally the best rewarded for supporting higher valuations. Modeling for higher BCAN prices would be no exception, especially with the AI-powered adult products market already presenting multi-billion dollar revenue potential and, as significantly, BCAN positioning itself as a leading sector player with IP-protected competitive advantages over later entrants. While already impressive, BCAN's IP arsenal is getting more robust.
Earlier this year, BCAN announced that in addition to the US Provisional Patent Application, 63/297,009 filed, they filed a full-scale PCT application PCT/IL2023/050016. The PCT application is based on its prototype of the EZ-G device, which is currently under development. The applications cover its EZ-G device's monitoring and controlling aspects, with further claims priority from the US Provisional application covering device design and structure. The company believes that besides potentially treating annoying phenomena in the female reproductive system, the EZ-G device's technological advancements will provide other benefits to heighten the user experience.
Differences Are Advantages That Exploit Potential
Product pipeline differences are advantages. The EZ-G device prototype uses innovative sensors to monitor pressure, temperature, conductivity, and heart rate to determine what enhances users' gratification. It then leverages artificial intelligence to transmit and receive data from those sensors related to conditions of the user's organs, including pressure variations due to muscle contraction. That's not all; the EZ-G prototype includes a Bluetooth component for controlling the device via an app installed on a smartphone or other portable device that collects user information about preferences to generate custom programs that are uploaded to the secured cloud, with the combined technology and product functionality supporting a positive user experience. Those differences are more than just advantages; they are value drivers.
And they have led BCAN to a place allowing them to capitalize on a multi-billion-dollar sensual wellness opportunity. That pathway is being paved by its EZ-G leveraging AI and machine learning algorithms to control its operational parameters based on the user's physiological data. It also records real-time user experience monitoring through integrated sensors, with its patent application covering claims that use AI to store user preference data, allowing it to learn general and current operation preferences. By collecting data on responses to different operation parameters, the power of AI streamlines its operation to provide a personalized and optimized experience for each user. Notably, the applications can benefit users outside of medical treatment.
Milestones reached support various interests. BCAN's groundbreaking EZ-G device could revolutionize specific uses of innovative sensors to treat multiple health and wellness conditions by delivering low concentrations of CBD oils, including hemp seed oil and other natural oils, to address specific women's health issues. Supporting broader use applications, BCAN conducted comprehensive experiments evaluating the functionality and performance of the integrated sensors, which detect indicators such as temperature, heart rate, and contractions.
That work led to the development of its capacitive sensor, which has demonstrated its ability to accurately detect the presence or absence of liquid, with the means to regulate the flow of oil or lubricating fluid during operation. These milestones reached are the type that turns into catalysts, in this case, from positioning BCAN closer to initiating human trials involving focus groups across different age groups.
A Value Proposition Exposed
All told, the sum of BCAN's parts justifies the investment proposition. To appraise BCAN properly, investors must factor in intrinsic and inherent value drivers already accelerating a mission to create sustainable value. Those include target market size, product innovation, and IP strength. The total from those alone exposes a valuation disconnect between BCAN's share price and assets, which many would call an unfair representation. Remember, investors paid more to get shares through a recent capital raise. Generally, there is plenty of due diligence before the deal is sealed. Thus, their willingness to invest at a higher price supports the bullish thesis.
And keep in mind that the capital raised along with its assets position BCAN to have its most productive period of growth in its history. Thus, as they did, it may be a wise and timely consideration to take advantage of BCAN shares at a discount. After all, BCAN is on the precipice of disrupting the sensual wellness market, not adding to the thousands of commodity-styled products currently available. Considering an over $9 billion direct product market opportunity in its crosshairs, current prices may be as bottom floor as they get. In fact, reclaiming its highs of June, well over 100% higher from here, may happen faster than many think. In other words, the window of opportunity may be closing.
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