Capsalus Corp. (OTCBB:WELL)
has received a Buy rating from Opus Group Financial, an upgrade from its
Speculative Buy recommendation issued last February. The independent
financial advisory firm based its new rating on the ongoing roll-out of
Capsalus’ expansion plans, highlighted by the acquisition of GeneWize
Life Sciences, Inc. and the development and launch of Guava Healthcare,
Inc.’s franchising business model. GeneWize
Life Sciences (http://www.genewize.com/)
is the first beauty and wellness network marketing DNA customized
nutritional supplements, skin care and gene modulating weight management
products; now as a franchisor, Guava
Healthcare (http://www.guavahealthcare.com/)
offers customized in-home, non-medical and medical staffing and services
to clients across the age spectrum.
As the report indicates, Capsalus’ acquisition of GeneWize represents
the company’s third deal in less than a year, each with early stage
enterprises in the health and wellness arena that have demonstrated the
potential to generate accelerating cash-flow and rapid margin growth.
GeneWize, which over the past three years has generated more than $25
million in revenue at a run-rate of $400,000-500,000 per month, will
enable Capsalus to report revenues in Q4 2011 for the first time in over
a year since the company set out to reposition itself.
"The GeneWize acquisition offers Capsalus an established business model
that will make an immediate contribution to its revenue line in Q4
2011,” said Opus Analyst Robert Sassoon. "It also will positively impact
Capsalus’ operating income in Q1 2012, generating gross margins of
approximately 30 percent in the absence of the overhead costs that
supported GeneWize’s former parent.”
In addition, after Guava Healthcare’s transition from an owner-operated
business to a franchising model over the course of 2011, it has begun
selling franchises in select markets in the current quarter. Opus
expects this move will also start to enhance substantially Capsalus’
revenue line in Q1 2012 if not sooner.
Concurrent with its corporate development campaign, Capsalus has
executed a major asset overhaul since early 2010, involving the
replacement of underperforming assets and reductions in operating
expenses and debt. While Opus acknowledges the probability of future
stock dilution, the prospect of relatively quick returns from new
investments should considerably improve financials and reignite interest
in the stock in the near term as well as point to significant upside
over the longer term.
View Opus’ full Capsalus
Corp. Update report (http://www.capsalus.com/sites/default/files/uploads/Capsalus_Corp_Update_Nov_2011.pdf).
Capsalus
Corp. (www.capsalus.com)
partners with and acquires visionary, early stage enterprises offering
innovative consumer products and services in fast-growing segments of
the health and wellness arena. Capsalus provides companies with the
operating infrastructure, strategic pathways and financial support to
get them to the mass market quickly and efficiently to achieve rapid
revenue growth while maintaining a low operating cost structure. Its
current companies range across the consumer products, media and
technology, biotechnology and healthcare industry spectrum. Capsalus™ is
a trademark of Capsalus Corp.
Forward-looking Statements
This news release may contain "Forward-looking Statements” within the
meaning of Section 21E of the United States Securities Exchange Act, as
amended.
All statements in this news release, other than
statements of historical fact, are forward-looking statements that
involve various risks and uncertainties.
There can be no
assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated
in such statements.
This notice expressly qualifies all
forward-looking statements in this news.
