June 18, 2015 9:00am
New York, NY--(Accesswire) -
SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of Breathe eCig Corporation (OTCQB: BVAP) with a price target of $0.35.
The report is available here: BVAP Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Based in Knoxville, TN, Breathe is driving innovation in the large and rapidly growing e-cigarette industry, and is the process of its commercial launch in New York, online, and in Tennessee. Inspired by a drive to create a high quality, socially responsible product made with flavors made from natural and organic ingredients, Breathe has developed a novel e-cigarette with a sleek design and proprietary patent-pending technology that differentiates it from industry competitors. The company has clearly taken great care to create a high quality, feature-rich product. Breathe has designed over 40 hand-crafted flavors made from organic and natural. In addition the Company's next generation devices (which will incorporate the Company's pending intellectual property) will reproducibly and precisely dispense the recommended amount of nicotine per puff and offer an optional childproofing device-both firsts in the industry. Breathe became a public company through a merger transaction with DNA Precious Medals, Inc., completed January 1, 2015.
"We are attracted to Breathe not only due to its proprietary products and unique approach to the multi-billion dollar ECIG industry, but also because we see several near-term commercial catalysts with the potential to add substantial value. Breathe is currently commencing its commercial launch in the New York City metro area, and is also offering product directly to consumers online and in Tennessee retail locations though distributor AMPA Group (covering Eastern Tennessee). The company recently shipped 100,000 units and 500 displays to the New York area for distribution in hundreds of convenience store and gas station locations, and we expect it to report its first quarter of meaningful revenues in 2Q15E. The company has been in discussions with retail and distribution partners globally, and we see the potential to invest in an innovative product with large market potential at the earliest stage of its commercialization," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $0.35 per share."
Additional highlights from the report are as follows:
Compelling high end product line
Breathe is competing in the large and growing e-cigarette market with a product differentiation strategy we think has the potential to resonate with consumers. Inspired by a drive to create a high quality, socially responsible product made from all-natural ingredients, Breathe has developed a revolutionary e-cigarette with a sleek design and proprietary patent-pending technology that differentiates it from industry competitors. The company has clearly taken great care to create a high quality, feature-rich product. Breathe has designed over 40 hand-crafted flavors made from organic and natural flavors and has incorporated two patent-pending industry-first product features in its e-cigarette- a child safety lock and a proprietary mechanism that "reproducibly and precisely" dispenses the recommended amount of nicotine per inhalation.
Massive potential for new leaders in eCigarettes and vape market
We see significant potential for Breathe as it enters the multi-billion dollar market for e-cigarettes and vaporizer products. There are over 42.1mn smokers in the United States, and Breathe management believes its domestic market opportunity is over 2.1Bn. The global opportunity is much larger. According to Euromonitor, the global market for e-cigarettes is expected to grow rapidly, increasing from $3.5Bn in 2013 to $51Bn by 2030, when it is predicted to represent 4% of the global tobacco market. Longer term, we also expect Breathe to benefit from therapeutic applications of its technology, as the company has a budding partnership with Pfizer and recently formed a wholly-owned subsidiary, Breathe MD, which will develop medical technologies using the company's intellectual property.
National launch commencing with product arriving in NY, TN
Breathe is currently transitioning form a research and development company to a commercial stage company with the national launch of its second-generation Breathe eCig, supported by distribution in New York and Tennessee, as well as an online website and intriguing social media campaign. The company confirmed that 100,000 units and 500 display cases have arrived for distribution in hundreds of retail and dispensary outlets in New York. The units will also be used to fulfill online orders and a $0.3mn purchase order from Tennessee-based distributor AMPA Group. We expect the company to report its first meaningful revenues in 2Q15 as a result of the June product launch. Assuming the initial uptake of the product is successful, we expect continued expansion at retail and dispensary locations, as the management team has identified over 22,000 target retail locations for its product globally and recently announced a new major distribution partner, TNG (a division of the Jim Pattison Group), which should enable the company to cover most of North America by year-end.
Please review important disclosures on our website at www.seethruequity.com.
