NEW YORK, NY / ACCESSWIRE / January 17, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Reign Sapphire Corporation (OTCQB: RGNP) and updated its target price to $0.70.
The report is available here: RGNP January Update Note.
Headquartered in Beverly Hills, CA, Reign Sapphire Corporation (OTCQB: RGNP, "Reign") is building a premium direct to consumer custom and branded jewelry company. The company has three divisions: Reign Brands jewelry collections, Reign Ventures for jewelry technology, and Reign Blockchain to authenticate sapphires as conflict-free. At present Reign's revenues are led by the Reign Brands jewelry division. Reign Brands includes 1) Reign Sapphire's ethically-processed, Australia-mined sapphire jewelry targeted towards millennials; 2) the Coordinates Collection line of custom jewelry inscribed with location coordinates to commemorate life's special moments, 3) Le Bloc classic customized jewelry, and 4) athleisure jewelry brand ION Collection by Jen Selter. Reign is differentiated in the market both by its vertically integrated source-to-retail business as well as by its technology-driven consumer marketing programs. The company's recent announcement that it would incorporate blockchain technology to authenticate conflict-free gemstones and to create a rewards-based cryptocurrency also adds an intriguing new technology element considering the rapidly growing interest in blockchain technology.
Reign provides encouraging update on business initiatives
On January 8, 2018, Reign CEO Joseph Segelman provided an upbeat investor update highlighting the company's expanded jewelry offerings, as well as new direct to consumer marketing initiatives and the recently announced decision to enter the blockchain market. As part of the announcement, management cited an improvement in marketing efficiency, the integration of its jewelry brands into one technology platform, while stating that the company expected improvements in revenues and profits in 2018. Specific growth initiatives recently undertaken, which are expected to support growth in 2018, include the entry into the $15 billion bridal jewelry market, the launch of the ION Collection by internet star and model Jen Selter, and an optimized online marketing strategy. Specifically, management cited attractive customer acquisition costs through affiliate, email, and social media influencer marketing that have generated new customer ROI of over 100%. We now expect 2017E revenues of $1.7mn with 2018E revenues of $5.2mn, and believe management is targeting profitability in the future as the company scales.
Reign to use blockchain technology for authentication
In January 2018, Reign announced that the company would incorporate blockchain technology into its business as a means to authenticate ethically sourced gemstones, as well as through a new rewards program using crypto-currency. Blockchain is a rapidly emerging decentralized and distributed database technology in which transactions are recorded chronologically and publicly. Reign's decision to utilize the technology to validate ethically sourced gemstones should provide a significant layer of trust with consumers, which is appropriate for an industry in which providing evidence of ethical sourcing is a key differentiator. Additionally, the use of blockchain for a new cryptocurrency-based rewards program positions Reign among a group of new entrants seeking to leverage the growth of cryptocurrency to accelerate their business. The company is exploring an initial coin offering (ICO), which could benefit from surging interest in cryptocurrency and serve as a marketing tool/differentiator for its online jewelry platform.
Updating target to $0.70
We are updating our target to reflect recent announcements at Reign and the company's anticipation of robust growth in 2018E. We see Reign as a speculative company in the high growth online consumer space.
Please review important disclosures on our website at www.seethruequity.com.
About Reign Sapphire Corporation
Reign Brands featuring, Reign Sapphires: Ethically produced, millennial targeted sapphire jewelry, Coordinates Collection: Custom jewelry, inscribed with location coordinates commemorating life's special moments, and Le Bloc: Classic customized jewelry and athleisure jewelry brand ION Collection by Jen Selter.
Reign Ventures, the Company's joint venture platform for investment and development of jewelry technology related products.
Reign Blockchain to authenticate Sapphires as conflict-free. Entries on the digital record can include attributes for each sapphire including the color, carat, and certificate number. Reign's Blockchain website will be Reignbc.com and cryptocurrency and blockchain-based loyalty program website Reigncoins.com.
About SeeThruEquity
Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.
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