Golden Triangle Ventures, Inc. (GTVH) Small Cap Report

Globe Small Cap Research, LLC – Golden Triangle Ventures Inc. (OTC Pink:GTVH) – May 2021 11 May 2021 – Golden Triangle Ventures Inc. Report Health : Global Health Services did over $1 million in revenue in 2020, which were impacted by COVID- 19 pandemic. With the US economy opening up, it will provide a boost to the growth. Further, launch of new product lines, website, payment processing, product portal and marketing division will enhance growth prospects in 2021. Entertainment : Lavish Entertainment did $200,000 in revenue in 2020, which again were impacted by COVID-19. We think 2021 is likely to see much higher revenue given the overhaul and expansion initiatives and new catalysts such as new “big name” artist to drive interest and exposure. Overall, GTVH expects to deliver a revenue of ~$30 million in 2021. This is a conservative estimate as it factors in pandemic level revenues for both GHS and Lavish Entertainment and assumes that HyGrO will achieve the minimum conservative estimate for all their products. It also assumes that new acquisitions will not add any revenue in 2021. To put this into valuation perspective, we use a peer group multiple approach. Given the diversified nature of Company’s business, there are limited pure-plays and it becomes difficult to apply a multiple to revenue. However, we consider companies in each of the three sectors (Entertainment, Health and Technology) to assess a working multiple for valuing GTVH. According to data provided by GTVH, Entertainment sector companies have an average revenue multiplier of 6.24x, Farming/Agricultural has a multiplier of 0.96x. Meanwhile, Healthcare Products trade at Price to Sales of 6.96x while Healthcare Services trade at 0.55x. Using this, GTVH is valued at ~2.48x 2021 sales of $30 million. This implies an equity value estimate of $74.4 million or $1.40 per share, which represents an upside of 637% based on the current market price of $0.19 as of June 3, 2021. The Balance Sheet The most recently released balance sheet for GTVH was dated March 31, 2021. The balance sheet showed cash of $285,736 as against total liabilities of $875,557. The total assets were again minimal at $656,363 representing the small size of the firm and the current stage of its projects. Cash used in operations for the three months ending on March 31, 2021, was approximately $0.6 million and approximately $0.9 million was inbound during the same period in the form of proceeds from issuance of common and preferred shares. The March balance sheet is included below as Exhibit Eight. Exhibit Five -Balance Sheet as of March 31, 2021