4 Emerging Companies on TSXV: DGTL, Ridgeline, CloudMD & RIWI

Summary

• The TSXV is a breeding ground for early stage companies.
• The TSXV index has performed well in the face of pandemic, posting higher YTD returns than the broader TSX index.
• The first half of 2020 was strong for basic materials sector on the TSXV.
• We look at 4 early stage companies on the TSXV: DGTL, Ridgeline, CloudMD & RIWI

The Toronto Stock Exchange (TSX) Venture index has been on a tear in the year of pandemic. While the broader TSX index declined by 2.68 per cent year-to-date (YTD), the TSXV index advanced by 28.04 per cent in the same period.

The TSXV equity market has seen positive returns for several sectors in 2020. The first half of the year was particularly strong for the basic materials sector that posted a robust bounce back. Over 800 issuers raised capital which public and private financings by mid-August. Finance and technology sectors too did well on the junior equity market, with 97 and 56 deals being announced, respectively.

READ: Investing In Early-Stage Stocks On TSXV? Here Are 3 Filters To Narrow Your Options

Here’s are some emerging companies listed on the TSXV right now:

1. DGTL Holdings Inc (TSXV:DGTL)

Sector: Financial Services

Industry Type: Diversified Financial Services

One advantage of COVID-19 pandemic has been the acceleration of specific digital market trends that has led to a spectacular growth in technology sector.

DGTL (Digital Growth Technologies and Licensing) Holdings, one such tech firm, focuses on acquiring and incubating disruptive marketing and advertising tech such as Adtech, Martech and digital content. It aims to maximize shareholder value with a portfolio of growth stage companies dealing in Artificial Intelligence-powered SaaS technologies.

DGTL’s is operating in the multibillion-dollar digital ad space. Its strategic objectives include capturing the AI market trends and develop multiple revenue streams.

DGTL Holdings’ Future Plans

(Source: DGTL Investor’s deck)

SaaS AdTech space has seen some significant success with rise of companies like Constellation Software (TSX:CSU) and The TradeDesk (TSX:TTD). Other growth stage companies include Acuity Ads (TSX:AT) and MediaGrif Interactive Technologies (TSX:MDF).

DGTL Stats

Market Cap: 5 million

Volume: 2,000

52 Week Low: C$ 0.1

52 Week High: C$ 0.37

One Week Stock Performance: (minus) -10.64 %

One Month Stock Performance: +110 %

YTD Performance: +110 %

Read: Early-stage equity - Here are 5 new entrants on TSX Venture

2. Ridgeline Minerals Corp (TSXV:RDG)

Sector: Basic Materials

Industry Type: Metals & Mining

Ridgeline Minerals is a Nevada-focused gold explorer with three projects – Carlin-East, Selena and Swift – across Carlin and Battle Mountain- Eureka Trend.

For the first quarter ending 31 March 2020, the miner reported cash and cash equivalents of US$ 1.9 million. The company has not generated revenues from its operations to date and is yet to determine whether its exploration and evaluation assets contain mineral reserves that are economically recoverable. The management owns 17 percent of stocks, as per info on the company’s investor’s deck.

Ridgeline debuted on the TSXV on August 18.

Ridgeline Minerals Corp Capital Structure

(Source: Ridgeline Minerals)

Ridgeline Stats

Listed Shares Outstanding: 48,095,391

Market Cap: 27,895,327

Volume: 1,300

52 Week Low: C$ 0.55

52 Week High: C$ 0.73

3. CloudMD Software & Services Inc (TSXV:DOC)

Sector: Healthcare

Industry: Healthcare Providers & Services

CloudMD is a SAAS-based health technology firm connecting patients to doctors on its platform through mobile, desktop and tablet. The stocks of this company soared amid pandemic, as consumers shifted online. CloudMD stocks surged by 29 per cent since its TSXV debut in June this year.

CloudMD has an exclusive AI-based tech. The company recently entered the American markets with acquisition of US-based chronic care medical clinic.

CloudMD Stats

Listed Shares Outstanding: 114,391,636

Market Cap: C$ 106 million

Volume: 404,259

52 Week Low: C$ 0.55

52 Week High: C$ 0.99

One Week Stock Performance: + 13.10 %

One Month Stock Performance: + 58.33%

Read: 6 TSXV Consumer Staple Stocks to Hold For 2020 and Beyond

4. RIWI Corp. (TSXV:RIWI)

Sector: Technology

Industry Type: Software

RIWI is a global trend-tracking and prediction company, helping companies tackle data problems. It provides monthly /annual subscriptions for actionable insights through surveys, risk monitoring, predictive analytics and ad effectiveness tests. RIWI claims that it does not collect any “personally identifiable data” and follows EU laws.

The firm offers randomized recruitment and response data in all regions of interest across geographies. It aims to scale up data collection and monetize valuable data streams, allowing for large sample sizes in short and actionable timeframes.

Nearly 90 per cent of RIWI’s revenues were recurring in 2019 due to ongoing subscription-based services and long-term contracts. It has zero debt and aims to achieve US$ 30 million in revenue by 2024.

The firm reported a net income of US$ 615,582 in the six months ended 30 June 2020, an increase of 617 per cent compared to net income of US$ 85,848 during the same period in 2019. RIWI ended the ending the quarter ending on June 30 with US$ 0.49 million in cash from operations.

The Financial Times recognized RIWI among top 500 companies in its annual ranking of The Americas’ Fastest Growing Companies 2020. The company debuted on the TSXV in July this year.

RIWI Corp Stats

Listed Shares Outstanding: 18,004,428

Market Cap: C$ 65 million

Volume: 2,900

52 Week Low: C$ 2.85

52 Week High: C$ 4.31