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PI Financial has Initiated Coverage on RediShred Capital (TSXV:KUT)

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Analyst Bob Gibson gives the company a buy recommendation along with an above average risk rating and a 12-month target of $1.30, a premium of 17% to the $0.60 price on August 2nd, the day the report was issued.

Additional Information:

Company: RediShred Capital
Website: http://www.redishred.com
Stock Symbol: TSXV: KUT
Date Published: Aug 17, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Today’s buy recommendation comes from PI Financial.

PI Financial has initiated coverage on RediShred Capital..

Analyst Bob Gibson gives the company a buy recommendation along with an above average risk rating and a 12-month target of $1.30, a premium of 117% to the $0.60 price on August 2nd, the day the report was issued.

RediShred Capital is the owner of Proshred Security, a provider on on-site shredding services.

As of March 2017, there were 29 Proshred locations in the U.S., of which 22 are franchised, for which Proshred gets a franchise fee.

The company operates seven corporate Proshred locations, which generate shredding service revenue and recycling revenue.

Redishred also has one international master license with 7 licenses in the Middle East, for which it receives a 1.25% royalty.

The company has a history of delivering relatively stable, growing revenue from a business that
customers will increasingly need over time.

It has delivered same store revenue growth in excess of 15% over the last five years.

Analyst Bob Gibson stated: “The market size itself will grow as government regulations to protect privacy and prevent identity theft become more stringent. More surprising is that in the digital age, 36% of C-Suite Executives say they expect paper use to increase.”

In the U.S., the document destruction business is a US$3.6 billion business, which is highly fragmented with many independents.

Management believes there are 20 to 25 more major markets, mostly west of the Mississippi,
where they could add a new franchised location.

The company recently announced a $4 million of senior secured credit facilities from Bank of Montreal.

Kasia Pawluk, CFO, stated: "The new credit facilities from Bank of Montreal are part of RediShred's on-going plans to manage and strengthen our Balance Sheet. The new facility is indicative not only of our past performance, but more crucially, will set the foundation for growth going forward."

InvestmentPitch Media first featured RediShred in September 2016, when the shares were trading at $0.40.

The shares are currently trading at $0.67, well below the $1.30 price target, and with 47 million shares outstanding, the company is capitalized at $31.5 million.

For more information, please visit the company’s website www.redishred.com, contact Jeffrey Hasham, CEO, at 416-849-3469 or email Jeffrey.hasham@redishred.com.

For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.
I’m Samantha Deutscher for Investmentpitch Media