Golden Developing Solutions Inc. (OTCMKTS:DVLP) bills itself as an emerging fully reporting company in the Health, Wellness, Pharmacy and Medical Industry. However, a deeper glance suggests this is an aggressive roll-up model focusing mostly on the specialty pharmacy space, which is bigger than you might think and remarkable underserved.
In other words, DVLP is aggressively attempting to establish a foothold as perhaps the market leader in the space by tying together existing high revenue producing profitable small businesses in the relatively overlooked specialty pharmacy marketplace.
Indeed, in just the past few months, the company has quietly made major strides toward its objective with very little fanfare, which is why we point it out today – the stock still trades at a paltry market cap of under $8 million despite its recent moves to line up acquisitions the company has noted it believes could be worth over $100 million in annual recurring revenues.
That’s an enormous imbalance representing huge value in play if true.
Recent Moves
DVLP has been making aggressive acquisition moves over the past few months.
In its most recent release, the company announced that it closed its 3rd and 4th acquisition in the past two months. The Company announced it has acquired Bushnell Pharmacy LLC, a Florida LLC on October 7, 2022, and also acquired Sai Siva Healthcare, LLC, a Florida LLC, on that same date. According to its release, both transactions were Asset Purchase & Sale Agreements.
Stavros Triant, the company’s CEO, noted, “With 4 acquisitions now completed, the company projects revenues can be in excess of $100m per year. We believe that these acquisitions will provide an increasing growth of revenues in this and coming years.”
According to the release, the purchase Price for the Bushnell Pharmacy agreement was $2,250,000, which included inventory of $550,000, Prescription Files (RX Data) of $1,690,000 and the Seller’s non-compete contribution of $10,000.
The purchase Price for the Sai Siva agreement was $3,050,000, which included inventory of $650,000, Prescription Files (RX Data) of $2,390,000 and the Seller’s non-compete contribution of $10,000.
As discussed, the company had previously announced the first two acquisitions with COD Management, LLC d/b/a Orchard Trails Pharmacy on September 23, 2022, and with Jai Chamunda New Hudson, LLC on September 28, 2022. Management noted that these were also Asset Purchase & Sale Agreements.
An Underserved Market in Play
According to recent analysis from Research and Markets, the Global Specialty Drug Distribution Market is projected to reach nearly $4 billion by 2027, growing from just over $1.8 billion at a CAGR of more than 14% over coming years.
However, the industry is relatively unconsolidated and dominated by small businesses, with major pharmacy players seemingly uninterested given the lack of high-margin generic drugs sold through this channel.
That has left this space ripe for the taking, and DVLP appears to be making an aggressive move to chart a course toward future leadership.
What Lies Ahead
With a series of key acquisitions already in the books, you might be left to think the big news is already out. However, we would note that there has been no significant movement in the stock in response to its recent spree of acquisitions, so the news about them clearly hasn’t made it out into the world.
Even more importantly, though, is the notion that DVLP’s major announcements would seem to still be ahead of the company.
First, given the scale of the revenue growth that would seem to be indicated, the stock could quickly qualify for an uplist to a major exchange, which would help with financing a larger scale process and serve to put the stock on the radar of a far larger audience.
Second, the company recently hinted that its biggest acquisition move is still in the works: On November 8, the company put out a press release titled, “Golden Developing Solutions Inc (OTC:DVLP) Announces Execution of LOI With $106mil/Yr Revenue Acquisition”.
In the release, the company announced that its “next acquisition target LOI has been executed by all parties. Bringing this company into our family will more than double our size and place us with an important logistical revenue producing asset. The journey is exciting and continues at full speed,” said Triant.
