Massive opportunity for early entry........ What's up investors and welcome back to
the channel. Today I want to talk about two hands corporation this stock is
listed on the OTC with the ticker TWOH and is in the process of attaining its
dual listing on the canadian securities exchange so today we'll be looking at
who exactly are two hands corporation we will look at their investors
presentation look at their projections on the total addressable market
management teams are vital for this type of microcap stock so i will look at the
management team here and finally i'll look at the most recent
financials and give you my conclusion on two hands corporation
before we get into the video it takes a lot of time to do this research so if
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you known about this company have you invested and what price target do you
have leave a comment down below i want to point out that i'm not a financial
advisor and this is not financial advice now let's get into it
two hands corporation is a food distribution company through its three
on-demand food brands go-cart city grocery originals and coor food services
go-kart city is an online grocery delivery marketplace that services the
greater toronto area delivering fresh and high quality produce meats pantry
items bakery and pastry gluten-free and organic items their line of high quality
products come from the long partnerships with local and international suppliers
grocery originals is the brick and mortar retail experience
that was recently launched in ontario fully equipped with a deli cool storage
and a stone pizza oven that offers a wide variety of fresh and speciality
meals created by corporate executive chef
grace De Fede food is a food importation, distribution brand that
operates in a wide range of channels including food service retail chains
hotels and restaurants and online direct to consumer sales core offerings
include a range of italian themed oils past the sauces
dry packed goods to exclusive wines coffees and desserts the company got its
name from several slogans such as we use two hands to prepare all things
food to perfection and two hands to drive two hands to
deliver the company operates a pay-as-you-go
business model of which averages 108 dollars per sale
the global online grocery shopping market has been growing for the last few
years but it has been fairly slow and steady growth
until 2020 between february and april 2020
food and beverage stores experienced a 107 increase in e-commerce sales in
canada the pandemic has given good reasons for canadian shoppers to switch
to e-grocery with about 65 of canadian shoppers expressing concern about
in-store food shopping during the pandemic we can see from this graph the
compound annual growth rate for online grocery shopping from 2018 up to 2025.
you can see the huge jump and beyond that the steady growth that
is expected over the coming years but we could also see that there was
expected growth from pre covert expectations
the fact is that this segment of the market has been growing for years 2020
just accelerated the process and although things will return to
normality the online grocery market will still have a much larger share of the
market than it had pre-2020 this presentation estimates the total
market size to be greater than 1 billion us dollars so looking at this milestone
page of the company presentation we can clearly see the level of growth over the
past year from the soft launch of the website in q2 2020 which had sales of
less than eight thousand dollars q3 had sales of 54 000 and total sales
for 2020 was 159 000. in q1 of 2020 alone the company beat the previous
whole year sales revenue growing sales by a massive 100 quarter
over quarter and we can also see here that the
company completed financing and listing onto the canadian stock exchange
meaning that two hands will be listed on both the csc and the otc pink sheets
it says here the twoh has an insanely low
market cap of only four million dollars but the share price has gone up since
then and occur and it is currently closer to eight
million two hands released huge news early last week that instantly seen the
share price rise they announced that the company has reduced its current debt by
67.7 percent now the important word here is current
they have not fully paid this debt nor have they had it forgiven
they have just extended its maturity so that it is not falling due within the
next 12 months they have been working with current debt holders to extend the
maturity dates for debt valued at 1.1 million
out to december 31st 2025. so this is a really good sign if you
think about it these debt holders were owed money within the next 12 months and
they have extended it out for the next four years
if they suspect that two hands would not be able to pay this in four years time
then the debt holders would probably try to forgive a portion of the debt now in
order to receive as much as they possibly could
as soon as possible so this is a very clear sign that they have no worries
that this company should be able to pay their full debt by the end of 2025.
i see this as extremely positive news and the company is making big progress
this year and has now developed a strategy that is
working in august two hands announced that it is
continuing to expand its strategic this to focus exclusively on the grocery
market this will help the company to align with partners that can help scale
the business and continue to grow in the market
two hands has seen record revenue growth in a business that is scalable and
offers a broad range of products and they look forward to the return of
schools and the continuation of feeding many university students with their
exclusive grocery delivery programs and just a few days after that announcements
they announced that it continues to expand
its goal meal kits by go-kart city's corporate executive chef
grace defede goal meal offers a wide variety of
recipes customers can mix it up with feature categories such as bbq
power bowls and salads to name a few recipe selections range
from one to four servings the kids provide generous packaged portions with
tips and suggestions on how to use the extra ingredients to get the most value
out of your meal kit which is a really great idea
with gocat city you can order your groceries and meal kits together in one
convenient place delivered right to your door i really like this idea i think
this is something that will work in most countries whether there is a pandemic or
not so i feel quite confident about this company going forward
something that is always important in this type of microcap company is having
a management team on board that is able and experienced enough to grow the
business in the manner that it needs to grow
nadav eli tov
is the company president ceo and director
he is also the president and founder of imaginate a developer of hand and body
motion motion-based interactive digital technologies
he is the results-driven leader of innovative digital technology enterprise
for over 20 years with the track record of building developing and motivating
high performance teams and is an expert in high-tech systems he has built a
solid career and has experience driving strategic initiatives and meeting
critical business mandates then we have independent director ryan wilson who has
an extensive career in the digital field spanning more than 20 years with a track
record that speaks for itself including digital marketing digital strategy and
digital transformation through innovation
for financial services ryan has been involved in all aspects of digital
development currently focusing on technology such as blockchain nlp
ai and machine learning he has worked with many top canadian
brands ranging from media conglomerates banks mutual funds
and one of the largest pension plans in the world to put them on the map
digitally bradley southam is another independent
director he too has more than 20 years of experience
where he has been the owner and creative director at linus
creative services he previously served as the creative
director at otg technologies group for five years
the management team is led by corporate executive chef
grace defede grace brings over 18 years of hospitality and diverse culinary
experience to go-kart city as well as international experience having worked
in both the netherlands and italy she will be creating
speciality recipes and meals for the online grocery marketplace and grocery
originals the fede was awarded the chef to cuisine certification sanctioned by
the canadian culinary federation known as some of the highest
achievements and honors for a canadian chef
and a mention also here for stephen graf who is the chief financial officer again
he has over 20 years of experience and also had a prominent role at otg
while at otg mr graf was instrumental in its growth from revenue of only 91 000
in 2003 to over 30 million dollars in 2006.
that is a compound annual growth rate of nearly 600 percent which is absolutely
incredible now i don't want to focus too much on
the financials of this company as we already know this is a very early growth
stage company and as we've already seen q2 and q3 of 2020 seen the launch of
their website and mobile apps looking at the income statement for the
six months into june 30th we can see that the company had sales of 364 000
which is more than a four thousand percent increase over the same period of
2020 giving a gross profit of 38 000 or roughly a 10 margin we can see the
total operating expenses were quite high at 1.3 million
and there was also a large loss on the settlement of debt
of three and a half million giving a total loss for the six-month
period of 4.8 million dollars now this is quite a sizable loss
considering the size of their revenue but we need to take into account
that they have been developing their mobile app and they have been developing
their website as well as their business as a whole and
the largest cost of all here is a settlement of debt
which is the sort of expense that we're not going to see in every quarter
looking at the balance sheet we can see that they have total assets of 1.6
million which is primarily made up of prepaid expenses of 1.4 million and cash
of 120 000 while on the liability side we have
current liabilities of 584 000
long-term liabilities of 1.2 million which gives us total liabilities of 1.8
million dollars so overall they have slightly more liabilities than assets
but this has been greatly improved on the december 2020 figures so they are
going in the right direction and as we know since june 30th they have also
reduced the amount of these debts that that were going to fold you within the
next 12 months when we looked at when we look at the notes to the accounts
we can see that there is no going concern issue here
in the section on page 24 liquidity and capital resources
as of june 30th we had cash of 119 000 and total liabilities of 1.8 million we
believe that our current cash balance is sufficient to fund our operations during
the next 12 months and as the company will not be required
to outlay cash for advertising in the next year as there is 1.1 million in
advertising credits with spax inc looking at the two hands chart over the
past year we can see that on several times the
price has spiked up and then dropped back down
and like every penny stock in february this stock reached all-time highs
and quickly dropped back down again but i believe that at its current price
of 0.002 given the level of progress that the
company has been making over the past year
and with the market cap being so low i see this as a fantastic opportunity to
get into this stock at the ground floor so guys that brings us to the end of the
video before i give you my final thoughts if you've watched all the way
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join the facebook group all links below so what do i think i think the two hands
is a company that has a lot of potential and they're showing this with the
revenue increases where they are growing quarter over quarter at an exponential
rate i like this as a business model and i think they will do very well
at the moment the market cap is only about six or seven million
dollars which makes this a really tiny company
this might even be the smallest company that i've covered on the channel to date
and so getting in here now is getting in extremely early the main risk here is
just how much growth will this company have post pandemic they will need to
have sizable growth quarter after quarter for quite some time
and it will be very interesting to see how this goes
overall i would rate this as a low risk high reward play there is far more
upside potential here than downside risk at the current price but most
importantly what do you think of two hands corporation and what is your prize
target leave a comment down below as i said before i'm not a financial advisor
this is not financial advice thanks for watching the video and i'll catch you in
the next one