SeeThruEquity Issues Update
on Reign Sapphire Corporation (OTCQB: $RGNP)
NEW
YORK, NY - March 6, 2017 (Investorideas.com Newswire) SeeThruEquity, a leading
independent equity research and corporate access firm focused on small-cap and
micro-cap public companies, today announced it has issued an update on Reign
Sapphire Corporation (OTCQB:
RGNP)
Headquartered
in Beverly Hills, CA, Reign Sapphire Corporation (OTCQB: RGNP,
"Reign") is attempting to build a new premium consumer brand in the
jewelry sector focused on ethically-processed, Australia-mined sapphires. The
company is pursuing this with a unique approach to the supply chain supported
by an intriguing technology-driven consumer marketing program. Successful
execution would position Reign as what management has called the "world's
first vertically integrated source to retail model" for sapphire gemstones
and fine sapphire jewelry. As part of the consumer strategy, Reign plans to
leverage technology acquired in a recent acquisition, as well as its supply
chain, where it purchases rough commercial sapphires in bulk directly from
commercial miners in Australia, and then control the supply at each step along
the way to retail, enabling the company control over quality, costs and design.
In our view the strategy is intriguing given what appears to be an
underrepresentation of sapphires at retail in the US jewelry market – only 8%
of total sales include colored gemstones and the potential financial and
quality benefits that could be achieved by controlling the process from the
miners-gate to retail.
Highlights from the
report are as follows:
Reign to acquire Coordinates Connection, Inc.
On
January 9, 2017, Reign CEO Joseph Segelman issued an update to investors in
which he outlined recent developments at Reign, including the recent
announcement that Reign acquired custom jewelry company Coordinates Collection,
Inc. ("Coordinates Collection"), a transaction that closed on
December 1, 2016. Headquartered in Los Angeles, California, Coordinates
Collection is a customized jewelry company founded in 2012 by Owen Devries.
Coordinates
Collection's flagship product line includes rings, bracelets, and necklaces
that display the latitude and longitude of places of significance to the
customer. Products are made from precious and semi-precious metals and stones,
as well as ceramic coatings. Coordinates Collection is predominantly sold
through online channels (90%), and also has wholesale distribution with an
international retail presence in Dubai. Importantly, the deal is expected to
add a differentiated technology enhancing the company's data driven approach to
marketing.
Coordinates Connection adds revenue-generating platform
Reign
sees a key advantage of the move to acquire Coordinates Connection as the
addition of a revenue-generating, online consumer technology platform. Indeed,
the acquisition provides Reign with an established online consumer sales
platform, which management sees as being synergistic with Reign's mine-gate to
consumer model. Coordinates Collection also brings revenues scale, with sales
primarily through online sales last year, according to the acquisition
announcement. Terms of the deal included the issuance of 7mn shares of Reign,
and a cash payment of $500,000, contingent upon a future offering, as well as
earn-out payments based on the performance of certain agreed on products.
Target unchanged at this time
We
are leaving the price target for Reign unchanged at this time. Reign is still
an early-stage developing company with an intriguing approach to a large
market, with resulting risks and opportunities. Our expectation is that we will
learn more about the company's ability to execute on revenue growth during
calendar 2017.
About Reign Sapphire Corporation
Based
in Beverly Hills, California, Reign Sapphire Corporation (RGNP) is a
fully-reporting, DTC-eligible company, originally established as a "source
to retail" model for fine Australian sapphires - rough sapphires to
finished jewelry, a color gemstone brand, and a jewelry brand featuring
Australian sapphires.
Reign
Sapphire Corporation now includes Reign Sapphires, Le Bloc Jewelry, and
Coordinates Collection.
More Ways to Reign
It's
not just about sapphires, but the moments the precious gemstones represent.
Reign Brands focuses on elevating products into personal keepsakes that are
built on quality with a unique, customized point of view.
Reign Brands
Reign
Brands, including Le Bloc and Coordinates Collection, combine quality
craftsmanship and timeless designs to provide a personalized shopping
experience to commemorate life's most memorable moments.
About SeeThruEquity
Since
its founding in 2011, SeeThruEquity has been committed to its core mission:
providing impactful, high quality research on underfollowed small-cap and
microcap equities. SeeThruEquity has pioneered an innovative business model for
equity research that is not paid for and is unbiased. SeeThruEquity is the host
of acclaimed investor conferences that are the ultimate event for publicly
traded companies with market capitalizations less than $1 billion.
SeeThruEquity
is approved to contribute its research reports and estimates to Thomson One
Analytics (First Call), the leading estimates platform on Wall Street, as well
as Capital IQ and FactSet. SeeThruEquity maintains one of the industry's most
extensive databases of opt-in institutional and high net worth investors. The
firm is headquartered in Midtown Manhattan in New York City.
Contact:
SOURCE:
SeeThruEquity
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