The highlight for Hygrovest Ltd (ASX:HGV, OTC:MMJJF)’s portfolio for the month of November 2023 was Delivra Health Brands Inc. (TSX-V:DHB), which posted strong quarterly results suggesting its turnaround may be on track.
Hygrovest is Delivra’s largest shareholder with a 22% shareholding.
Delivra’s goal is to help people take control of their health with alternative wellness solutions. The company’s portfolio features innovative brands like Dream Water and LivRelief, which deliver relief from common everyday issues like chronic pain, anxiety and sleeplessness.
It achieved first quarter fiscal 2024 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of C$683,000, compared with negative adjusted EBITDA of C$154,000 during the same period last year, driven by an increase in sales volume.
The health and wellness consumer packaged goods company's net revenue for the period, meanwhile, rose 112% year over year to C$3,671,000, due mainly to an increase in sales of Dream Water in the US.
Hygrovest’s investment manager is HD Capital Partners Pty Ltd. HD was appointed to that role for a term of five years starting 1 July 2023.
HD is both the manager and the largest shareholder in Hygrovest, ensuring an alignment of incentives and a shared outcome.
With a current market cap of just C$2.85 million (as at 30 November 2023), it is HD’s view that the market is undervaluing the extent of Delivra’s recent progress.
Hygrovest also acquired shares in two more Australian-listed small-cap stocks in November. One is a special situation trading at HD’s estimate of net cash while the other is a takeover target, with a potential acquirer recently taking a 20% stake.