Santo Mining Corp (OTCMKTS:SANP) is an extreme deep sub-penny player that has floated from sector to sector depending on which theme is hot at that time. We’ve seen gold mining, cannabis, and now Bitcoin. The latest move into the cryptocurrency space has been fostered by dint of a merger with the Chinese Canoe Bitcoin Mining Pool.
The upshot, or so we understand, is slated to be the creation of the Canoe Pool America. “Under the terms of the LOI, upon execution of the definitive merger agreements, SANP shall issue to Canoe Pool 150 million shares of preferred stock of SANP, representing approximately 35% of SANP’s post-merger preferred stock, and 50 million additional shares of preferred stock upon achievement of certain Bitcoin Mining technology goals, representing approximately 40% of SANP preferred stock.”
Santo Mining Corp (OTCMKTS:SANP) is now doing business as PODWERKS, which is a co-working space for cannabis entrepreneurs in the United States, providing the necessary framework to grow, market, and sell all cannabis-related products.
However, the company’s latest release suggests it is trying to move into the cryptocurrency space as well. We would point out to readers that this has all the red flags one could ever hope to pile together in a single company. Buyer beware, caveat emptor, and all that.
The company states that “Our aim is to create a sustainable and community-driven workspace by providing an affordable, scalable and a safe business environment for our tenants. All PODWERKS spaces will feature three types of pods: 1-Growing pods o Nursery, Production and Drying 2-Office Space pods o Desk space, Wi-Fi, printers, copy machines, meeting rooms, snacks 3-Retail Space pods o Coffee Shop, Hardware Supply Shop, Co-op Shop PODWERKS spaces will be located in urban designated zones permitting the commercial cultivation, and sales of cannabis-related products. Each site will have an average of ten modified steel shipping container pods with an onsite manager overseeing day to day operations. Working with local and state agencies, PODWERKS container pods will comply with all building code requirements to ensure the safety of our tenants. Community is an essential part to PODWERKS mission of Grow for Life. PODWERKS tenants can benefit from a series of social and professional events designed to foster collaboration and create a strong and expansive community. Some of these events will include speaker series, investor panels and local governments outreach, among others.”
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As noted above, shares of SANP have been on the pop of late as the company attempts to make a strategic pivot into the bitcoin mining space. Hence, while the value has perhaps increased, the company is also likely going to now be levered to the wild gyrations of the bitcoin market – easily the most volatile major asset market on the planet. That introduces both positives and negatives.
Assuming this deal is for real, we also need to take a little bit of a look at the juxtaposed entity: Canoe Pool (Chongqing Yuhuan Technology Co., Ltd ), led by its founder Li Ang since 2013, is one of the fastest growing bitcoin mining companies in China with two large-size mining farms in Sichuan and Xinjiang, China; and with a total capacity of 75 thousand kilowatts, accommodating up to 50 thousand of the latest Bitmain S9 mining machines. Canoe pool has a total hashrate potential of 700P. Miners can choose between PPS or PPLNS payment systems with fees of 2% or 4%, accordingly. Canoe Pool currently supports Bitcoin Unlimited and represents 1.7% of the global cryptocurrency mining market share.
We’ve witnessed 1600% added to share values of the name over the past month of action. The situation may be worth watching. SANP is a stock whose past is littered with sudden rips. Furthermore, the company has seen interest climb, with an increase in recent trading volume of a bit less than 510% over the long run average.
At this time, carrying a capital value in the market of $5.6M, SANP has virtually no cash on the books, which compares with virtually no total current liabilities. SANP is pulling in trailing 12-month revenues of $45K. However, the company is seeing recent declines on the top-line on a sequential quarterly basis, with revenues falling as of its latest reporting period. As more color becomes clear on the name, we will review the situation and update our take. Sign-up for continuing coverage on shares of $SANP stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SANP, either long or short, and we have not been compensated for this article.