Okay, good morning, everyone. Your hosts today are Ghassan Halazon, Founder and CEO of EMERGE Commerce, and Maurice Finn, COO of EMERGE Golf. Before we begin, I'm required to provide the following statement with respect to the forward-looking information which is made on behalf of EMERGE and all of its representatives on this call. Certain statements made on this call will contain forward-looking information which is based on our opinions, estimates, and assumptions in light of our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors that we currently believe are reasonable in the circumstances. Actual results could differ materially from a conclusion, forecast, or expectation in the forward-looking information. We caution investors not to rely on the forward-looking information, and during today's call, all figures are in Canadian dollars unless otherwise stated.
With that, I'll pass the microphone to Ghassan Halazon.
Thank you so much, Dasha. Good morning, everyone, and hello from wherever you're tuning in. I am Ghassan. For those of you who don't know me, I'm the Founder CEO of EMERGE. I'm joined by Maurice Finn, the CEO of EMERGE Golf. He'll spend a bit of time talking through our latest acquisition and our golf portfolio shortly. We're happy to be here. We're happy to be back. We haven't done this sort of thing in some time. As many of you know, we've been heads down in recent years, really zoning in on cleaning up the balance sheet, doubling down where we're winning, and really zoning in on fewer, bigger, more compelling opportunities. We're excited to share our progress and our plans. Let's jump right in. Let me sort of lay the foundation here, sort of where the portfolio sits today.
This is, inclusive of the latest Tee 2 Green acquisition, which we'll talk about shortly in the presentation. EMERGE. as many of you know by now, is a Canadian e-commerce brand portfolio across grocery and golf verticals. We count about CAD 25 million or so in pro forma revenue, inclusive of T2G, and excluding any of the businesses that we had sold in prior years, of course. We're fortunate to say that we've seen three consecutive quarters of organic revenue growth. That was a big theme last year, following the multi-year decline from the peak pandemic highs, which we viewed as an artificial, artificial level. We've been able to reignite that growth and, at an accelerating clip, I might add. Of course, Q1 has not yet been reported, but we have shared positive signs along the way.
If Q1 were to be another positive quarter, that would make it our fourth consecutive quarter. Of course, as we've recently announced as well, profitability has continued to improve and move in the right direction. We gave some preliminary guidance on Q4, and as you can see, with the addition of Tee 2 Green, which brings about $1 million or so in EBITDA, that is most, most certainly going to put us in a position of adjusted EBITDA positive moving forward. We count four brands across our two verticals in the portfolio, and they're a mix of grocery, which we'll go into shortly with our flagship brand, truLOCAL, as well as now, as well as now three golf brands, on the discounted experiences, apparel, and equipment side. Our primary focus is Canada.
We think there's a tremendous opportunity to build and brand ourselves as a Canadian market leader across these verticals. We are heading in that direction. Let's start with a quick update on truLOCAL, our flagship meat and seafood subscription brand for consumers. It's a direct-to-consumer business. We are the market leader in Canada for what we do. We deliver, on average, a monthly meat subscription box filled with your grass-fed beef, your organic chicken, your wild-caught salmon in a box refrigerated with dry ice straight to your doorsteps. This is a model that has a lot of good tailwinds right now. Frankly, we'd seen this progress in earlier years, and we believe this is, you know, an outsized brand opportunity. It's a strategic play for us. We're obviously based in Ontario.
We have BC and Alberta hubs and with service across Canada, so we're national presence. It is EMERGE's largest brand by revenue. There's a lot we like about the metrics. If you, if once you deep dive into our ability to acquire customers and bring them on for, call it $100 and sub $150, we're seeing these customers go on to spend $1,700 or more in customer lifetime value at very reasonable gross profit margins as well, with solid pricing power, a high propensity on the loyalty side. We have the really good community angle. We encourage folks to spend some time, see how this brand is reviewed and how it's loved online. We think there's still continued tremendous opportunity here. As I, as I've shared a few times, Butcher Box is the market leader in the category in the U.S.
They are a bootstrapped $500 million revenue business. You know, truLOCAL is sub 15 million right now, obviously growing, obviously, you know, growing both top line and profitability. We think these are still very early days. This is a chance for us to really, really supercharge the truLOCAL business and ultimately build around it in the food tech space. Speaking of tailwinds, as you're all probably familiar with and aware of, truLOCAL is really at the forefront of this support local or buy Canadian movement sweeping the country. Importantly, we really don't view this as a moment in time only. We don't think this is a passing thought. You know, with the pandemic, for example, truLOCAL grew from $8 million in revenue, shot up to $20 million in revenue in a single year, on the back of everyone being locked up.
The world was going to end. Everyone was shopping online, but that was because they were forced to shop online. Once the world opened up, as we were proven wrong, frankly, we were making the bet that the online way of living would lead. It turned out to be a much more balanced approach where, you know, 20 came down to a low of 13 or 13.5. As I say, we're pushing, you know, closer to 15 now as we start growing again. We expect that this new sentiment shift is here to stay. That's very important. As you look at all the surveys, you know, there's one yesterday that we saw, it was BMO estimating CAD 10 billion annually being spent in Canada by Canadians supporting local.
We believe, with a name and brand and community like truLOCAL, there isn't a better business in Canada, better business position, than we are in terms of this opportunity. We think we are not only going to participate in this movement, but we want to be one of the faces of the support local movement. That is the direction we're heading in. That is not just talk. As we've indicated through some of our updates along the way, we've seen a tremendous surge in net new subscriptions to the platform, i.e., new subscribers joining versus those leaving. That equation is our net new subscriber count. We saw a triple-digit, 193% increase in February. Obviously, that warranted us going stronger on marketing, doubling down on our creative, doubling down on our Canadian messaging and positioning.
You can see on the right-hand side of the slide, some of the examples of media coverage we've received, an ad that we've pushed out, a bit of a provocative ad, if you will, saying that truLOCAL is retaliating with a 25% off, Canadian meat and seafood. You know, obviously tongue in cheek campaign with what's going on in the tariff situation and the 25% tariff at the time, in the headlines. We are very excited about this progress. We're building around it, and we are really zoning in on this idea of us being a nationally loved, locally sourced business and community straight from local farmers. We're seeing some great, great early signs. I won't spend too much time on the industry, but needless to say, meat and seafood and food tech at large is a massive, massive industry.
It's growing fast, and it's really at the intersection of multiple huge trends, whether that's convenience, whether that's transparency, you know, getting understanding where your food source comes from, your health and wellness, you know, doing it ethically, you know, customizing your needs, and obviously kind of delivering it straight to your door in building that habit. We love a lot of things about this model. Let me zone in here before Maurice jumps in on, you know, a deep dive into the golf vertical, including our latest acquisition. Let me just highlight from a transactional perspective what we've accomplished here and what we've announced recently. As many of you have gathered, we closed the Tee 2 Green acquisition, which is a profitable bolt-on golf products business, i.e., apparel and equipment business.
We've done so in what we believe are very favorable, flexible terms, and it's coming with immediate synergies. To highlight Tee 2 Green from a financial perspective, last year their revenue exceeded $ 6+ million. Adjusted EBITDA was around $ 1 million, a net income of $ 700,000 in 2024. And, you know, I think this brand has stood the test of time, safe to say, and has been around for a long time. We are not buying this business for growth. We are buying this business for its consistency, for its EBITDA, for its cash flow, and for what it does for the overall portfolio. This business is expected to bring EMERGE overall to cash flow positive in 2025 moving forward.
We paid $ 2.2 million for it, including $ 1.1 million in cash, $ 900,000 over five years in deferred consideration, and $ 200,000 in EMERGE shares, which is just north of 3+ million shares at $0.065 per share, which is a premium to market, in support of our big picture plan around golf and around building this leading portfolio of brands. We were able to do this acquisition with no additional proceeds. There was no dilution here, obviously other than the shares as part of the consideration, but we did not have to raise any capital. The reason we were able to do it is we got scrappy. We rolled our sleeves up. We were able to sell our shop domains to Shopify.
As some of you may have heard, earlier this year, we announced that along as well as the non-core sale, asset sale of Carnivore Club, which was a small and declining business for us, and, you know, did not really fit the bill. We wanted to double down where we are winning, where we are growing, where we have big brand appeal like truLOCAL, and obviously the golf businesses. Essentially what we have done here is we have replaced two non-performing, non-productive assets with zero EBITDA or thereabouts between the shop domains, which we were sitting on idly, as well as Carnivore Club. We have replaced those two idle businesses or non-productive businesses with a flexible creative deal that brings us $ 1 million or so in EBITDA from Tee 2 Green at these, you know, the flexible arrangement that we have set up.
This is very exciting for us. For a deeper dive on what our golf business looks like today, I'd like to introduce or reintroduce Maurice Finn, who I've come to know and work with for almost 14 or 15 years now, through various ventures. He joined EMERGE earlier in around 2018 heading up our sales and partnerships, and he's done phenomenally well, specifically with Just Golf Stuff, which is really where he shined and that business shined. Now Tee 2 Green is the perfect bolt-on acquisition for the golf portfolio. Maurice now is COO of Golf. He heads up the full division. Without further ado, Maurice Finn, please jump in and give us the intro on golf.
Yeah, thank you, Ghassan. Good morning, everyone. Thanks for joining. I'm gonna give everyone a quick overview of our EMERGE Golf brands and talk a little bit more about our latest acquisition, Tee 2 Green. As Ghassan had mentioned, Tee 2 Green has a, you know, 38-year track record of profitability, mainly focused on the discounted golf apparel and equipment space here in Canada. They have two retail stores, you know, one in Barrie, Ontario, the other is in Orillia, Ontario, which serves as their headquarters. It's where their warehouse is based as well. Those retail stores make up about 20% of their overall revenue. Another 40% of their revenue comes from three-day roadshow events they have across Ontario during the golf season. They tend to focus on more rural locations, which are underserved in a retail capacity, and these are very lucrative weekends for the business.
The other 40% comes from a mix of their own Shopify store, which is teetogreen.net. They do custom fittings at their stores. They have simulators in their stores, and also they are a retailer on the Just Golf Stuff marketplace. You know, being in the industry for so long, they've got significant relationships in place and licensing agreements with all the major manufacturers in golf, like Taylor Made, Callaway, COBRA, adidas, and many others. As part of those agreements, they also have significant lines of credit with all these brands, which do allow us to, you know, receive goods today that we order and pay for them maybe 150 days down the line, which gives us that cash flow advantage. As Ghassan had mentioned on the previous slide, as part of this transaction, we are receiving $ 2.4 million in, I would say, excellent inventory.
The vast majority is less than 12 months old. The great thing with that inventory is we're paying it down over eight years. We do expect a sell-through rate of about 75% in year one on that existing inventory, and the expectation is about an 80% markup on that inventory. That also is giving us a significant cash flow advantage in year one. They also have their own private label brand, Northern Spirit, which leans in again to that Canadian movement right now. That's primarily focused on golf bags and accessories. It's actually a significant part of their business. It contributes up to about 10% of their revenue. Really, really high margin brand and something we wanna lean more into going forward. As Ghassan has said, Just Golf Stuff, something that's a part of the business that's growing extremely fast for EMERGE.
It's got 10x GMS growth over the last five years, and that's basically a Shopify marketplace for retailers across Canada to post, you know, different golf apparel equipment offerings. We're of course offering nationwide delivery throughout that brand. Tee 2 Green has actually been on that marketplace since 2020 as well. On the other side, we have our UnderPar business, which is focused on discounted green fees across North America. Our two biggest markets being Ontario here in Canada, and California in the U.S. This is a business that's really enjoyed a lot of success over the last 12 months. We saw double-digit organic revenue growth in 2024. We're actually seeing similar trends in 2025. This business was something that was impacted by COVID.
Obviously, as the, you know, demand for golf really boomed during COVID, courses had less desire to, you know, offer discounts on their green fees, and that did impact UnderPar. We are seeing in the last 12 months, a lot of courses who hadn't ran in three, four years start to come back on the platform. We're really seeing a significant interest in our stay and play, as well as international travel and curated travel golf experiences, which is something quite new for us. We're really seeing some good numbers there. We're excited for that. Recently, two of the biggest names in golf worldwide, Pebble Beach and Torrey Pines, also joined the platform and did significant numbers. Really excited to kind of lean into that space and grow that in 2025 and beyond.
Another thing to note, obviously, with a bit of a weakening economic climate and a bit of volatility out there with the tariff situation and the stock market situation, it's important to note that, you know, people are always gonna play golf, and we think UnderPar is well placed as a place that offers discounted green fees for people to go to if there is a downturn in the economy. We also see that similar thing on the Just Golf Stuff Tee 2 Green side, as they're of course focused primarily on discounts, whether it's equipment or apparel. UnderPar itself was actually born out of the recession in 2008. So it's something we think we're well positioned for if there is a downturn moving forward. Next slide, Ghassan. Thank you.
I think one thing I think it's important to state, I myself have had a management contract in place for Tee 2 Green for about 12 months or so. I've been pretty much operating the business day to day, doing the majority of the procurement. I've built key relationships with all their staff. We were really de-risked in this acquisition, the fact that we know this business inside out. There really are some instant synergies we can avail of from day one. I think a big thing for us right off the bat is EMERGE Golf has access to, you know, over 400,000 golfers, and we are gonna use those to drive traffic to Tee 2 Green's roadshows across Ontario, as well as to Tee 2 Green's retail stores.
On the inverse, you know, Tee 2 Green, they have a smaller email list, but it's a highly engaged email list that they get at their golf roadshows that they do. We can use that list to obviously drive traffic to our Ontario golf deals on UnderPar. We're gonna use the same model we use for Just Golf Stuff, which again is hosted on Shopify, which is very similar to tee2green.net, which is hosted on Shopify as well to scale that business. That involves cleaning up the site, using the email program we use for Just Golf Stuff, and using our in-house digital marketing team to provide that same scalability to Tee 2 Green's own online platform. We are expecting some significant savings for the business as well.
One of the first things we're gonna do is fold in Tee 2 Green's shipping volume into Just Golf Stuff's account, which will avail us of some discounts right off the bat. We've also secured discounts on shipping earlier this year. With the elimination of the carbon tax, we expect to save about 10%-20% per package shipped in 2025. We're also gonna use the existing EMERGE resources to help power some of Tee 2 Green. There will be some further OpEx savings as well. I think one other thing to note is as part of the Tee 2 Green transaction, as I mentioned, Tee 2 Green has all these licensing agreements in place with all these major brands. Some of these brands, like Taylor Made, are yet to be on the Just Golf Stuff marketplace.
Part of this transaction allows us to, in time, get these bigger brands like Taylor Made and others onto the platform, which is gonna give us another GMS boost for Just Golf Stuff. Lastly, to mention the Just Golf Stuff case study, as we mentioned, it's EMERGE's fastest growing business. You know, we acquired this as part of the UnderPar transaction in 2019. It was basically a $ 500,000 GMS business, not something we were really focused on as we were really zoning in on UnderPar. When COVID hit in 2020 and the supply on the UnderPar side diminished, what I did was basically utilize that UnderPar email list to drive traffic to Just Golf Stuff. After some initial success, we were able to onboard a lot more retailers across Canada. All of this was done by using existing in-house EMERGE resources, using that UnderPar team.
We didn't need any outside investment to scale this 10 x We've been very smart in terms of different partnerships we've put in place with the likes of American Express, which is a big partner of ours, [Bengo], and many others. I think the last thing to note is what we see with Google Trends as people are continuing to search for golf equipment, golf apparel. The demand is high. Given the climate right now, we're well positioned as a discounted golf apparel, golf equipment provider to really scale further during this time. We're really excited about the Tee 2 Green transaction. You know, it's something that's close to my heart. As I said, I've been working with them for many years. They've been on Just Golf Stuff for many years.
We're excited to use, obviously, those relationships that they've built to help scale their business and in turn, obviously, drive further growth for the Just Golf Stuff business. With that being said, thanks everyone for their time. Ghassan, I'll pass it back to you.
Thank you, Maurice. It is indeed really exciting and remarkable what you've been able to do over the last four or five years with JGS and with our partnership with Tee 2 Green. I for one, I'm really excited to see how you scale up the vertical and leverage EMERGE resources and marketing and data. This is coming at exactly the right time for the overall business. Moving on, I just wanted to recap a little bit what this 2.0 strategy entails.
As many of you know, EMERGE has come from a world of being super decentralized with middle management, you know, a larger HQ team and, and staff to support all of our various verticals. At the time, you know, we were sitting on five different verticals, nine or 10 brands at the peak. The idea at that time was relatively minimal synergy between these verticals, that these businesses would be run in a certain way. We would not be as hands-on at the time. Obviously, we were hit with very unfavorable macro, both from declining revenue from the peak pandemic highs, at the same time rising interest rates, and just a weakening e-commerce environment, post-pandemic. We see ourselves, where we find ourselves in, what we call the EMERGE 2.0 era, which is all about a streamlined, focused strategy and approach.
It means us being centralized, hands-on, roll our sleeves up, run our brands. So, you know, I view myself and Maurice as operators pretty much parachuting from the EMERGE HQ team into both the grocery and golf verticals, with Maurice focused on the golf side. I'm focused on the grocery side, and, and of course, in addition to, you know, sort of our investor and public, you know, capacity. Big picture, we are more centralized. We've streamlined these businesses. We're focused on these two compelling opportunities. Obviously, everything we're doing now is synergy-driven. For example, Maurice just laid out very specific synergies that would not have necessarily been available had you owned, for example, a meat and seafood company in Canada and a pet business in Virginia that was B2B, for example, right? We did not have that type of synergy over here. That's much clearer.
We've obviously done a big job on cleaning up the debt. Fortunately, between reigniting our organic revenue and the improved interest rate climate with all the rate cuts, you know, we feel like this is all starting to shape up really nicely. Let's look at a preliminary report card for 2024. We kind of came up with our preliminary Q4s. We'll be announcing our official full year audited statements in late April, as usual. Safe to say high level, the key headlines here for the year are, we have managed to go ahead and reignite organic revenue growth. We've talked about that, three consecutive quarters of growth. That is both grocery and golf growing again. We've reduced our debt, as we've spoken about. We've improved our profitability and streamlined our business.
We're now expected to be adjusted EBITDA positive, inclusive of Tee 2 Green's sub, million bucks or so in EBITDA. Of course, we were able to grow our cash position year- over- year without a capital raise, obviously creatively in part, due to being able to sell some of our assets to Shopify, as I mentioned, but also that the business itself has grown and generated better cash. That left us with about $ 3 million in cash at year end, which subsequently, obviously, we've used some of that cash to pay down, to pay for the upfront Tee 2 Green portion. We feel that we've hit on all cylinders from an operational perspective to line ourselves up in 2025 to go out with strength here.
We certainly have done some really good things in Q1 that I have shared with you guys, but more to do once we announce Q1 later in May. In terms of just pure play, big picture savings and growth opportunities for the business, we are wrapping up. We talked about these, I guess theoretically in the past, but a number of these projects are well underway and a lot of these unlocks are live or about to be live. You know, we put basically most of our brands are now on a payment processor that gives us shared savings or bulk savings, if you will. We have managed to secure email service provider savings. So all of our brands send emails.
We have about 500,000 members on our email list and we've struck really, really compelling deals versus what's out there in the market. Of course, I'm not gonna go through each of these one by one, but needless to say, you get the idea. A number of these different areas are ones where we have actively rolled our sleeves up, created tenders, created competitive pressure, and landed deals that gave us some savings. One of our biggest areas of savings has been tightening up the HQ team overall, as I've mentioned, tightening up any non-focused brand presence and staff members. We've been able to do so aggressively without impacting revenue and with improving profit. To go into growth in a bit more detail, there are a couple of opportunities I just wanted to highlight.
You may have heard in Q4 we announced that we secured close to $500,000 in corporate orders for truLOCAL, i.e., sending meat and seafood subscription boxes to employees and clients during the holidays, with this idea that, enough with the chocolates, enough with the wine, you know, let's gift healthy, let's support local. We had quite a bit of success last year and we expect with the environment we're in, with the support local mindset that again, we believe is here to stay, we think there's gonna be a really amazing corporate order year, specifically holiday season. Of course, beyond that, potentially build on the corporate vertical, both for grocery and golf, over time. There are other opportunities in terms of partnerships. Maurice mentioned AMEX , UnderPar is now on Travel zoo, which is a popular travel website.
We are pretty much there, I wouldn't say exclusive, but we are definitely their largest provider of golf course experiences. You know, we're striking partnerships with work organizations, perk organizations. We really are excited about getting our great offering out there to as many Canadians as possible, as well as the U.S. market for experiences, as Maurice mentioned. We've done a couple of acquisitions in the past, but this one with Tee 2 Green is really kind of an eye opener in terms of what an accretive, synergistic acquisition can look like, what type of flexibility we can get. We feel very excited about future acquisitions along these lines that bring that cash flow enhancement, bring that EBITDA improvement, add synergies, add scale all at once.
Of course, right now, for the time being on geography, Canada is our front and center primary market. We will not rule out international markets down the line, but that is just not the focus now. I think we are really happy with our presence and our positioning, as of late. Just a quick update on the debt side. As you all might have seen as well, when we announced the closing of Tee 2 Green, we also announced a refinanced debt facility with our existing lender for up to 24 months. This gives us until April 2027, inclusive of the extension option built in with lender approval. We feel really good. We have been with this lender since 2019. We have brought the debt down by 77%, from $ 25 million, the senior debt facility, down to $5.85 million. We have an excellent relationship with our lender. They continue to support us.
Obviously, that was a vote of confidence in the Tee 2 Green transaction in terms of re-upping, giving us another couple of years of visibility. Our note is variable. With the recent as well as upcoming interest rate cuts, we expect continued meaningful interest savings, which are as good as cash. You know, these are cash savings straight to our pocket. Just to kind of, we still have a few slides left and then we'll take a few questions if any of you have them. Just to recap, sort of, we are on the track here. We've talked about not only last year, we talked about reigniting organic growth. We now have organic growth. We wanna accelerate it, right? We were talking about reactivating our accretive M&A program.
We have taken action already here, from the start of the year to now. We closed Tee 2 Green, practically, you know, got it in the best time of the year, by the way. Q2 is an amazing time for golf, amazing time for Tee 2 Green to be with us and include them. Q2 will really be our first quarter inclusive of Tee 2 Green, both revenue and profit expected. Of course, we will continue to be opportunistic. We will think through ways to improve cash flow, reduce interest. Those might include debt discussions or, you know, right now we are happy with what we have landed with our lender. There are a couple of years of visibility. We are focused on the business, but we will always be opportunistic. You know us by now quite well.
Wanted to point out, in addition to Maurice and myself, Dasha is heading up as CFO. She joined as interim CFO earlier in the year. Things are flowing. We're gonna be wrapping up our audit later this month. We've also seen that, with this tighter management team, our focus has gone much deeper into the brand level, with the golf side and the grocery side. This is kind of the core management team at this point. On the board side, no changes. We have three independent directors in addition to myself: Drew Green, the CEO of INDOCHINO; Ian McKinnon, who was formerly a board member at Constellation Software for, I think, 16 or 17 years; John Kim, who was, continues to be a director at WELL Health, among other boards. This is our cap table today as it stands, for reference.
You know, we will keep you updated on any material changes. We are sitting at a $ 11.7 million enterprise value, share price at $ 0.045, and a market cap at about $ 6.4 million with 142+ million shares outstanding. That includes the shares that the Tee 2 Green shareholder received. Just to recap everything at a very high level, there are a couple of takeaways from today. One of them has to be that we are performing, right? That the operating metrics of the business are strong. They are improving. We have had the growth in top line. We have had the improved profitability. We are now talking about cash flow positive moving forward. We feel great about pure and old school operational execution. We also are uniquely positioned.
We have what we consider to be one of Canada's best portfolios and businesses, frankly, at this time from a tariff proof perspective, as well as from a recession proof perspective. I think the word proof maybe undermines the fact that in some ways, some of this is actually strengthening us. You know, truLOCAL is actually not just tariff proof, it's actually blossoming further as a result. On a recession side, you know, UnderPar was founded during last great recession in 2008. Those were the years this model was made. We think this weakening climate, particularly in Canada, will be conducive to our golf business as well. We're really proud, and I think one of the reasons we made it through the storm is that we actually sit on amazing loved brands, right?
A lot of companies jumped on the bandwagon, bought different businesses on Amazon, little stores that had no real brand, but just a bit of EBITDA or that sort of thing. We really, really focused on brands. If you go look back, we've always talked about loyal communities, sticky behavior, amazing metrics, you know, proper customer lifetime value to CAC, very favorable, as I mentioned earlier. These are the things that help these brands have, you know, durable win streaks, if you will. We believe we're sitting on some of the best brands in digital and in golf and grocery overall in Canada. Our debt, we've talked about a bit already, but we've reduced it by 77%. We've done so by selling off mainly non-core businesses and doubling down where we think we can win.
Where management at EMERGE has parachuted in under our EMERGE 2.0 model, we are running these businesses directly with discipline and we're seeing those results directly. And then just in terms of pipeline for acquisitions, you know, and again, you've got to know me and Maurice on the management side. There are other great people around us. On the acquisition side, you know, we're really changing our philosophy. As I said, we're zoning in on that extreme synergy, that day one synergy, if you will. We're really, really focused on amazing pricing, right? You know, really good businesses that are durable, that have stood the test of time, that are maybe longer duration, have been around for five, 10, 20 years rather than a couple of years, and have, you know, a setup that allows us to get amazing terms.
'Cause as important as execution is, it's so key to get these businesses at a reasonable price, right? In Tee 2 Green's case, almost 2.2 x EBITDA versus a historical average on our end of 4x to 5x to 6 x EBITDA, even in some cases when at the peak of the market. Getting a great price, getting flexible terms, but also getting synergy, that is very exciting.
We find ourselves in the fortunate position at this point where we have two multi-hundred million dollar vertical opportunities with, with truLOCAL and the meat and seafood business at the center of our food tech vision, as well as the golf vertical that now encompasses UnderPar, Tee 2 Green, and Just Golf Stuff, both on the experiences and product side, apparel and equipment, both online and offline, where we have great strength, 400,000 + members, one of the biggest and most interesting golf portfolios here in the country, of course, with a presence, a growing presence in the U.S. , I might add. With that, we are done on the presentation, but we are happy to take any questions if you have them, and I'll give everyone a chance to drop questions in the box as well. Okay. The first question, can you comment on valuation?
How do you see fair market value? Okay. I mean, it's obvious, it's obvious that this is a situation with EMERGE where once upon a time, we were essentially valued at much higher levels with probably less meat on the bone, if you will. We found ourselves essentially in a world where everything's come back down to earth. As I said, we've seen our revenue come down a while back and we saw interest rates go up. That really took, you know, our equity value down low to depressed levels. I think that as we've come out of that, as we are gaining health, as we're growing, as we're profitable, as our debt's going down, as interest rates are coming down, now we gotta start looking at what fair, fair is the right word.
I look at this and say, look, like we are a $ 25 million revenue business based on last year, excluding, you know, organic growth. We are now a profitable business on an EBITDA basis. You know, we are a cash flow positive business from that perspective. When we look at businesses that command all three of those, it is not unusual to see valuations of two times revenue or even three times revenue at scale, at scale, right? Let's call it $ 100+ million . What I think is that, you know, it's very hard to peg a strict valuation. The market's gonna do what the market's gonna do kind of thing. We do believe that one times revenue levels are realistic for a healthy, growing, profitable digital portfolio of assets.
I would also say, you know, sitting at a $6 million or $ 7 million market cap right now is probably a function of the fact that not enough people have spent time educating themselves on the actual changes that we have implemented, of the power of this acquisition, for example, of the power of our growth and profitability. It's very hard for me to peg a number. We leave that to the market to do what it's gonna do. We certainly feel that in our category, you know, if we are achieving, you know, the three pieces, the revenue growth, the EBITDA, the cash flow, then we are one of the premium businesses doing so. We don't have enough scale yet to command two or three times revenue, but I think one times revenue is fair game.
Let's not forget a lot of digital and e-commerce companies do not even have EBITDA, let alone cash flow. I see another question. How do you envision growing your grocery business? Are you actively pursuing opportunities to expand your TAM into adjacent fresh food and grocery verticals? It's an interesting question. Thank you, James. I think realistically, the grocery business, as I look at just a standalone truLOCAL opportunity, and vis-à-vis sort of the Butcher Box, $500 million revenue opportunity, that is just in meat and seafood delivered to those customers. If we are delivering to something like 6,000 customers, and the AOV is $ 225, first things first, before we get excited about all these other opportunities, we are looking at this saying, how do we bring 6,000 to 10,000 to 14,000 to 22,000 members, right?
We think there is a path, frankly, of a, call it a 10x of what we're doing based on how we're doing it. We are actively looking at growing average order value, i.e. the checkout value people leave. You know, we are doing that through adding things on the sites, things like extra points, member offers. By the way, we have a newly minted site for those of you who haven't been on trulocal.ca that I definitely would love for you to check out. We are seeing AOV go up, but not only are we seeing AOV go up now, but we're also seeing the cost per acquisition go down in part because of this buy Canadian movement. If you think of our levers, we got on the revenue side, we're improving AOV.
On the gross margin side, we have pricing power. If some of you are members, you may have received some of our emails around pricing. We are able to increase price. These are members who care deeply about the community. Unlike in many other services that I'm aware of, if you raise prices, customers are angry at you. In some cases, with truLOCAL, what I've seen, the feedback is customers are saying, thank you for what you do. We are more than fine paying a bit of an extra price. We do so, obviously, with a mindful approach to give great customer experience, support local, but also make our business viable and able to grow.
You got your, you know, growth at the top, you know, growth at the gross margin level, the team and the approach is streamlined so that we are profitable and we can reapply that over time. There are multiple tuck ins within the truLOCAL segment. There are over eight to nine pure play direct to consumer meat and subscription type businesses that we can acquire. As I mentioned, we are the largest business to do so here. I think to, to long story short, I think the 10x is in what we're doing with the focused approach we're doing. As you heard me say, we will also add corporate ordering, which we're seeing more promise in. We're getting structured around. We think that that is going to be a big move. Next question, is there any tariff impact expected on the golf product side?
Maurice, would you like to take that one?
Yeah, good question. We do not expect any impact in Canada in 2025. You're talking to the manufacturers, you know, when the first discussion of tariffs came out in the news, they actually imported a lot more product into the Canadian market. In most cases, they imported two years' worth of product that is currently warehoused in Canada. We actually think this could open up significant opportunities for us. You know, when brands like Callaway and others have unsold inventory in Canada or stuff that is slow to move, generally what they do is ship it back to the U.S. and sell it through their U.S. retailers or U.S. websites. In this case, the tariffs will make it very difficult for them to do that.
We anticipate actually a lot more deals being available in Canada later this year and much better terms on those deals. I actually think for our Canadian business, this is actually gonna be a significant opportunity for us this year.
Thanks, Maurice. We'll have time for two more questions. We're aiming to end at 11:45, but we'll just go with these. Real quick, next one is why was Tee 2 Green willing to sell, for such flexible terms? I can give you very quick context on this one, because it is, you know, an incredible multiple, flexible terms, you know, and we hope there are more out of these structures we can land. The founder and shareholder that's been around for 38 years was retiring, moving to Florida. It was a time, it was the right time for him.
He knew with Maurice spending time with the business, with our teams integrated already through our partnership and relationship and management contract, that we would be the right custodian for the business. There is a lot of intricacy and a lot of dependency between the brands. We got a sweetheart deal. I will not lie. I do not know that we can match that sort of structure many times over, but it was certainly one that we were very happy with and we think it is going to be a big impact both to our revenue as well as our profitability and ultimately cash flow. One more I will take right here. It says Butcher Box has announced today that it is now selling its products on the Target Plus marketplace. Is that something truLOCAL would consider in Canada?
Are you looking at additional acquisitions this year? Yes, I think to your point about partnerships, it is something we're looking at, and, as I said, we've been looking at all sorts of partnerships on the golf side, on the Travel zoo, and the, you know, the work perks, you know, AMEX, over here on the corporate side. We are speaking to the Targets of the world in Canada and the usual suspects. It is not easy to strike something like this. This stuff takes time, but there's more interest than ever, I will say, and more outreach to us than ever in the local opportunity in being the market leader in D2C. We're excited. We're gonna be looking at these different opportunities. There's nothing imminent on that side. We're just encouraged.
We're really, really encouraged and emboldened by the fact that these tailwinds are all coming together at the same time. It's ironic a little bit because a few years ago we couldn't get a good card, you know, we couldn't, you know, everything was coming down no matter what we bought. All of these e-commerce companies and the whole segment was coming down. Interest rates were going up, you know, our debt was high. Finally we're seeing all of this excitement around our brands, our business, our buy Canadian trend, you know, and the fact that even before the buy Canadian trend, all of last year quietly, we were growing organically, we were streamlining, we were improving so that we can go back on the offensive now and we feel like we are just about ready to do that.
With that, ladies and gentlemen, we wanted to thank everyone here, all of our attendees. I think there have been, I see about 27 now, but I think there's a total of about 40 or so tuned in today. Thank you very much. We really appreciate you, continuing to support and learn more about EMERGE Commerce. We look forward to giving you more updates starting with our Q4 audited financial statements at the end of April and then our Q1s later in May. Thank you everyone. Have a great day. We appreciate it.
Thank you.