Rockshield Capital – their seed investments are solid as a Rock.
We decided to take a further look at it as the trading volume and share price has increased in the last few days.
Rockshield offers investors exposure to early stage seed investment in companies that would traditionally be reserved for Accredited Investors or Institutions. Rockshield sees a lot of deal flow and pitch decks and choose their investments wisely based on potential for future returns.
They have made several key investments in a number of tech, Blockchain and cannabis companies and those seed investments are starting to bear fruit.
Highlights of their last 2 investments in November
- Invested in AKE at $0.35 – share price now ~$1.00
- Invested in MONT at $0.30 – share price now ~$0.50
Not too shabby of a return for 2 months.
- Helius Medical (TSX: HSM) US based medical device company, they are one of the largest Shareholder and investment made at $0.78 currently at $2.75. Took a tumble back in November… maybe they offloaded their holdings into more profitable ventures…Blockchain
- The Green Organic Dutchman Holdings Ltd (Private) – Participated in the seed round (~$0.50) of funding for this company a year ago and shown a significant increase based upon later rounds of financing and expected TSE listing in Q1 2018.
- Cognitivity (Private) – Healthcare and AI play, Rockshield provided growth funding 3 months ago at $0.25 per share.
- Plus Products (Private) – Manufactures cannabis infused edibles for Californiamedical cannabis market and has seen explosive growth in their product demand. Rockshield provided growth funding 6 months ago at US$0.96 per share, and the company intends to list on the CSE in 1Q 2018.
- DMG Blockchain Solutions (Private) – full service diversified Blockchain and cryptocurrency company that manages, operates and develops end-to-end digital solutions to monetize the blockchain ecosystem. DMG is strategically positioned in Japan(the world’s largest bitcoin trading center). DMG is launching the 2nd state-of-the-art blockchain transaction processing (bitcoin mining) hosting facility in Western Canada with plans to go Public in early 2018.
- Emblem (TSX-V: EMC) Rockshield provided multiple rounds of financing to Emblem with a weighted average cost of $0.66per share, Currently at ~$1.80.
- Rockshield Engineered Wood Products ULC (“REWP”) (Private) – Bought a hardwood plywood mill at a bankruptcy sale and brought the company back to life. (1/3 % ownership)
Their investments in Mid Sept had NAV of $0.33 (current share price $0.28) and their portfolio is worth around $7M with a cost base of $3.5M.
With total assets in the range of $10M and with very little overhead (~$160,000 a year) cutting into the NAV of the fund, this company is solid as a rock with only 45M shares outstanding.
Why we like this company:
If offers the smaller retail investor the exposure to the early seed round financing and all the goodies that go along with it Warrants and potential for massive share price appreciation. You get diversification into all of the hottest sectors and the team has an excellent track record of results.
They issued a news release earlier today talking about how they have invested in a number of Blockchain companies that it thinks are best positioned to capitalize on the booming industry…. They also announced that they are reviewing opportunities to unlock the value of its private holdings potentially by way of a spinout into separate public market vehicles in order to generate further shareholder returns.
Currently trading below its NAV back in September….once an update is out this stock could really move.
Fortune Favours the Bold