TAALF - TAAL Distributed Information Technologies (TAALF) - Initiating Coverage on TAAL Distributed - Blockchain for Enterprise

Initiating Coverage. We are initiating research coverage on TAAL Distributed Information Technologies with an Outperform rating and a $6.00 12-month price target. We believe the Company's focus on using blockchain for transaction processing will bring long-term value, while crypto mining services provide near-term revenue and an option on rising prices for BitcoinSV. A Differentiated Approach to Blockchain. TAAL's goal is to harness the power of blockchain processing for enterprise applications. The Company's proprietary cloud-based platform meets enterprise demand for real-time transactions, unlimited transaction scalability, ultra low transaction fees, and network security on the blockchain.Use of BitcoinSV. TAAL makes use of the BitcoinSV protocol as it provides the scale and cost advantage over other blockchains that makes use of BitcoinSV attractive for enterprise transaction application. TAAL has and is developing cloud based agnostic tools and services.Key Supporters. On the financial side, entrepreneur Calvin Ayre has accumulated a 44% stake in TAAL, most recently investing an additional $13.5 million in the Company's recent equity offering. In addition, TAAL has a close relationship with nChain, a global leader in advisory, research, and development of open blockchain technologies.Projections. Near-term results will be driven by mining operations and services as we do not expect transaction processing revenues until 2022. However, it is important to recognize that TAAL will have multiple revenue streams going forward. Given its reliance on mining revenues in 2021, results will be heavily influenced by the price of BSV. We are projecting 1Q21 revenue of CAD$3.05 million and a net loss of CAD$4.3 million, or $0.12 per share. Read More >>