Southern ITS International Inc. (OTCMKTS: SITS) is a holding company with a unique position in 4 of the fastest growing sectors on the market, that you should put on your radar today. Continue reading to learn why SITS may be the best holding play on the market.
INVESTMENT HIGHLIGHTS
Holding Company Advantage: Holding company structure allows SITS to target high growth opportunities while maintaining high margins due to lowered costs associated
Current Holdings Are In High Growth Industries: Currently, SITS, has 3 focus companies, in CBD, Gold, and Water Conservation respectively
BREAKING NEWS: SITS enters the Oil & Gas market with its first wholly-owned subsidiary, Pure Oil & Gas.
SITS MARKET
SITS through its 3 interests and 1 subsidiary is competing in 4 of the highest growth industries on the market:
- CBD
- Gold Mining
- Water Conservation
- Oil & Gas
CBD Market Opportunity
The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028 according to Grand View Research.
The CBD-infused Products Market is expected to reach $216.8 billion by 2028, at a CAGR of 45.6% during the forecast period, 2021-2028 according to Markets and Markets
Reason for Growth: Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, which is the major factor driving the market growth. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products. Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation.
Gold Mining Market Opportunity
The global gold mining market is forecast to grow from $214.1 billion in 2021 to $249.6 billion by 2026, at a compound annual growth rate (CAGR) of 3.1% for the period of 2021-2026 according to ResearchandMarkets.com
Water Conservation Market Opportunity
According to MarketsandMarkets, the global smart water management market size is expected to grow from USD 11.7 billion in 2019 to USD 21.4 billion by 2024, at a Compound Annual Growth Rate (CAGR) of 12.9% during the forecast period.
The water and wastewater treatment market is expected to grow at a CAGR of 6.5% from 2019 to 2025 to reach $211.3 billion by 2025.
Reasons for Growth include the rising demand for quality water services, the need to replace aging water infrastructure, rising digitalization of utilities sector, and government regulations favoring the development of smart water management solutions.
Oil & Gas Market Opportunity
The global oil and gas market is expected to grow from $4677.45 billion in 2020 to $5870.13 billion in 2021 at a compound annual growth rate (CAGR) of 25.5%.
Crude prices continue to reach new highs and prices at the pump are climbing. Domestic opportunities are going to be big for the market moving forward.
SITS Competitive Advantage
As a holding company, SITS has quite a few advantages over companies focused on one vertical and/or industry:
1. Liability protection
Placing operating companies and the assets they use in separate entities provides a liability shield. The debts of each subsidiary belong to that subsidiary. A creditor of the subsidiary cannot reach the assets of the holding company or another subsidiary.
Say our entrepreneurs’ horse farm is struggling and has been unable to pay its trainer and veterinarian. They can sue and reach the assets of the subsidiary that owns the horse farm but not the assets of the subsidiaries that own the restaurant and apartment building, or the holding company.
2. Control assets for less money
A holding company needs to control its subsidiaries but doesn’t necessarily need to own all shares or membership interests. That allows the holding company to obtain control of another company and its assets at a lower cost than if it had acquired all of the subsidiary’s ownership interests.
3. Lower debt financing costs
A holding company that has financial strength can often obtain loans for a lower interest rate than its operating companies could themselves, particularly where the business in need of capital is a startup or other venture considered a credit risk. The holding company can obtain the loan and distribute the funds to the subsidiary.
4. Foster innovation
Because operating companies are separate entities, there is less risk in investing in startups or other ventures that seem risky. In fact, when Google restructured and formed Alphabet as its holding company, one of the reasons cited for doing so was that Google shareholders were concerned about the company’s investments in areas like robotics, Google glass, life sciences, and medical research. By restructuring, those investments were separated from its core and profitable functions such as its search engine and YouTube businesses.
5. Day-to-day management not required
A holding company can own businesses in a variety of unrelated industries. It doesn’t matter if the owners and managers of the holding company don’t know about those businesses because each subsidiary has its own management to run the day-to-day operations.
SITS OVERVIEW
Creating Corporate Growth By Acquiring Innovative Businesses and Providing The Financing And Sales Expertise To Increase Brand Identity, Buyer Recognition, Sales and Revenues
Southern ITS International, Inc.’s strategy includes owning and/or controlling a portfolio of highly successful businesses and will focus on being a multi-national conglomerate. As a holding company, Southern ITS International will be in the market to acquire a stake in various companies both public and private.
It will also focus on building a direct sales network of various e-commerce internet applications, manufacturing, and internet sales of various products which will give the company an advantage in fostering the growth of its holdings.
The company is currently focused on 4 companies:
- Restorative Health & Wellness, Inc. (a CBD opportunity)
- Smarter Flush Marketing LLC. (a Water Conservation Play)
- Atacama Minerals Inc. (a Gold Mining opportunity)
- *NEW* Pure Oil & Gas Inc. (first wholly-owned subsidiary)
SITS HOLDINGS
Restorative Health & Wellness, Inc.
SITS’ CBD Opportunity
SITS entered into a Letter of Intent with Restorative Health & Wellness, Inc., to acquire a One-Third ownership interest in the Newport Beach, CA based-company known for its all-natural RESTAURA line of skin, health, and wellness products, which incorporate cannabidiol CBD as a primary active ingredient.
James Shipley, SITS’ CEO, on the acquisition:
“We are excited at the prospect of our investment in Restorative Health & Wellness and look forward to finalizing the stock for stock transaction. The RESTAURA product line is an example of unique innovation. We believe that it will become a leader in the skincare and wellness industry with products that restore and rejuvenate the human spirit.”
Smarter Flush Marketing LLC.
SITS’ Water Conservation Opportunity
SITS has entered into a Letter of Intent with Smarter Flush Marketing LLC for Southern ITS International to acquire a Forty percent ownership interest in the Nevada limited liability company.
James Shipley, CEO of Southern ITS International, Inc., commented, “We are excited at the prospect of our investment in Smarter Flush Marketing and look forward to finalizing the transaction.”
Mel Kanar, founder of Smarter Flush, said, “Over the past 13 years we have sold thousands of our kits to homeowners, hotels, motels, and apartments. All of our customers were interested in saving money, reducing wasted water, and improving performance of their toilets, without the expense of purchasing and installing a new toilet. Through most of the United States, especially the West, many states are running out of water and the cost of water is increasing. With the toilet being the biggest user of water in an average home, it only makes sense to replace the outdated 1950s flapper and chain mechanism with the water-saving and cost-effective Smarter Flush kit. Most of the Smarter Flush products can be installed without tools and can pay for themselves within a short period of time. Smarter Flush products are available at Lowes, Amazon, Walmart, Wayfair, Ace, and True Value and will be coming soon to Home Depot and Ferguson Plumbing. Smarter Flush is excited to become a part of the Southern ITS International.”
About Smarter Flush Marketing, LLC
Smarter Flush was founded by Mel Kanar in 2008 with the primary focus on water conservation. Through his travels around the US and abroad he became acutely aware of the need for better water conservation practices. During trips across Europe and in Asia he became aware of dual flush technology which was created to reduce water consumption and eliminate the flapper and chain mechanism that was prevalent in nearly all toilets. Mel was the first manufacturer to bring the lever handle activation to the dual flush system that Americans are now familiar with. Today, Smarter Flush is one of the fastest growing companies in the industry and continues to develop and bring to market new and innovative water conservation products. Please see www.smarterflush.com.
Atacama Minerals Inc.
SITS’ Gold Mining Play
SITS will own a thirty percent (30%) interest in Atacama Minerals, Inc.
Mr. Daniel Miroli, Chief Operating Officer of Atacama Minerals and its wholly owned Chilean subsidiary, Minera Los Apires SpA, said, “We are 100% owners of the Flamenco Gold Mining project located in the world-renowned Atacama Desert Fault, regional home of several major gold and copper mining operations and exploration projects. Our mineral leasehold is 1830 hectares, approximately 4500 acres.”
He went on to say, “The Flamenco Project is located in the coastal Chilean mountain range some 15 kilometers from the ocean, surrounded by a number of world-class mining operations. Twenty kilometers to the East is Mantoverde Mine, a major copper-gold mining operation in the process of a billion-dollar production and processing expansion plan. South and West next of our Flamenco project, is El Zorro, a large exploration project headed by Tesoro Resources which is an Australian public company. They recently announced an initial maiden gold resource estimate of 660 kilo ounces representing a dollar value of around $1.15 billion. These estimate results only represent less than 1/3 of the 60,000-meter drilling campaigns completed.
The announcement by Tesoro Resources is a confirmation of Flamenco’s own geological study findings and results since both projects are in the same mineralized geological structural body. We are extremely excited about these new developments, and we are looking forward to commencing our own initial drilling campaign to establish proven and inferred gold reserves. Since the commencement of the El Zorro project which started approximately two years ago, we have been closely following and analyzing their strategy as a model to our Flamenco project.”
Pure Oil & Gas, Inc.
SITS’ First Wholly Owned Subsidiary
SITS’ latest announcement was their launch of Pure Oil & Gas, Inc., a Wyoming corporation, as a wholly-owned subsidiary, to add to their growing family of energy solutions and products. James Shipley, President of Southern ITS International, Inc., said of the opportunity, “The global transition, which the energy world is experiencing, is moving fast, adding new components to the energy puzzle, and reducing others. The growing demands and need for oil and gas exploration and production is growing here in the United States, as well as around the world. Also, new innovative, green, cost-effective, energy saving technologies are in more demand now than ever before.” Mr. Shipley went on to say, “We intend to use our new platform to acquire and or joint venture oil and gas exploration. We also plan to position our platform to expand and multiply corporate growth by acquiring and forming joint ventures with select, innovative companies that have unique, new technologies involving conservation of water, gas, and power, new batteries with longer life spans, renewables, and emissions.” www.pureoilgas.com.
SITS Due Diligence Links
Corporate Filings and Disclosures
This Southern ITS International Inc profile is part of a sponsored investor education program.