RDE, Inc. (OTCQB: RSTN) is having a tremendous start to 2021. The company’s stock is roughly 200% higher since January, and its Reg A offering is now priced approximately 20% below the current stock price. That’s great news for investors who either own the stock or those considering a purchase through the proposed Reg A filing.
Several partnerships have put the company’s stock on the radar screens. The most recent is that renowned chef Fabio Viviani has been appointed as RSTN’s first member of its Advisory Board. And his service is likely the first of several planned additions to an Advisory Board that will focus on strengthening RDE’s relationships in the restaurant and food industry. Chef Viviani is expected to add tremendous value to the RDE team by allowing RSTN to capitalize on his industry relationships and experience as a restauranteur and chef to help direct RSTN’s mission to generate effective digital marketing services.
Chef Viviani certainly adds clout. He has fast earned his name as a Celebrity Chef, Hospitality developer, best-selling cookbook author, and TV Host. Since coming to the United States in 2005 from Italy, Chef Viviani appeared on the reality television competition series Top Chef, where he was voted “Fan Favorite.” He has also opened three dozen food establishments, restaurants, bars, and event spaces and served as a spokesperson for several international brands. His passion for quality has made him an established industry presence, and his company serves more than 10 million meals a year through his namesake venture, Fabio Viviani Hospitality, which has become a leading restaurant group in the United States.
His expertise could help accelerate what is already a busy year for RSTN.
Deals For Restaurant.com Accrue
As noted, Restaurant.com has been busy making deals since the start of the year. Shares have responded in kind, advancing more than 200% since January and more than 54% in March ($3.00). The gains come after RSTN announced several new partnerships expected to help drive revenues higher over the coming months. Its most recent partnership is with AMAC, the Association of Mature American Citizens, and its 2.3 million members that provide a targeted pathway for RSTN to reach the senior adult population.
A second deal with MemberHub, the largest and fastest-growing community engagement software company for K-12 parent groups, also puts RSTN in an enviable position to target millions of customers through an array of digital deal offerings. MemberHub currently serves over 12,800 organizations that engage with more than 2.8 million K-12 parents. A third partnership rounds out a busy and productive few weeks of client expansion.
That deal has RSTN partnering with Rosebud Restaurants to provide marketing services on its digital deals platform for their six Rosebud and two Carmine’s locations across Chicagoland. The three agreements add momentum to its report of solid earnings in 2020.
A Strong Start To 2021 Financially
The partnerships come after the company reported strong operating results for 2020. Thus, 2021 is setting up to be even better. On March 1st, RDE, Inc. announced unaudited financial results for the year ending December 31st, 2020. According to RSTN, it recorded revenue of $2.9 million with a net income of $332,000, or $0.06 in earnings per share. Those results compare to a loss per share of ($1.37) in 2019.
RDE noted that the revenue figure reflects business recorded from March 1st, 2020, the effective date of RDE’s acquisition of Restaurant.com, rather than the full year 2020. Thus, the twelve months revenue for Restaurant.com was $4.4 million. All financial results are subject to the audit.
After an audit, results could have RDE, Inc. swinging into a profit. A breakdown of the results showed income from operations of $531,000, showing substantial improvement compared with a loss of $2.1 million in 2019. On a per-share basis, RDE delivered EPS of $0.06 compared with a negative EPS of ($1.37) in 2019. Notably, the 2020 net income and EPS include a positive non-cash change in derivative liability due to convertible notes’ accounting.
Bullish as well is that Shareholder’s Equity for the year also had a significant turn for the positive. According to its update, Equity jumped from a ($7.8 million) deficit to $1.1 million in Equity for the year. Further, with the removal of all institutional convertible debt, management expects balance sheet improvement and bottom-line growth to continue to demonstrate meaningful increases going forward.
As noted, investors are starting to feast on the growth opportunity. Since the start of 2021, shares of RSTN have increased by more than 200% from a base of roughly $1.00 each. Volume has increased substantially as well. At the start of the year, trading was sporadic. Now investors exchange approximately 13.6K shares of stock per day, a more than 13,000% increase from the trading volume lows. That increase in liquidity could help shares trade in an orderly manner.
And with its bullish trend, coupled with investor’s apparent hunger for shares, the recipe is in place to sustain higher valuations.
Disclaimers: Hawk Point Media is responsible for the production and distribution of this content. Hawk Point Media is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Hawk Point Media was not compensated to research, prepare, or syndicate this content. Hawk Point Media has no working relationship with the company featured. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by Hawk Point Media is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall Hawk Point Media be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by Hawk Point Media, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. Hawk Point Mediastrongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.