Introducing…The MicroCap Review Index (MCRI™) by Robert Kraft, MBA, SNN Network

intRoduCing….thE miCRoCAp REviEw indEx (mCRi™)

The MCRI™ is as pure an index for microcap stocks as can be. We believe the MCRI™ provides a much more accurate, in-depth,

benchmark of the microcap stock universe, with equal weighting given across the board, regardless of size.

Most of the other microcap indices are market cap weighted, giving preference to larger companies with higher trading volumes, and are reconstituted bi-annually or annually, versus quarterly.

Source: microCap Review index, as of January 3, 2022

Source: microCap Review index, as of January 3, 2022

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“While you may expect most, if not all, the Top 30 for each sector will have positive share price appreciation for the quarter, that’s not always the case.”

• U.S. (NYSE/AMEX, NASDAQ, OTCM) or Canada (TSX, TSX Venture, CSE, NEO) • Primary Listing only (meaning, primary symbol of dual-listed companies • On the final day of the quarter, all public companies: • Between $10 million and $300 million in Market

Capitalization • Share price equal to or greater than $0.10 • Filed a 10Q or 10K in the preceding quarter

From there, the index comprises the Top 30 companies from each sector based on 90-day share price appreciation. At most, MCRI™ will consist of 330 constituents, from 11 sectors, all equally weighted.

Q1 2022 BrEakDown

While you may expect most, if not all, the Top 30 for each sector will have positive share price appreciation for the quarter, that’s not always the case. This last quarter, here’s a chart that breaks down the average price performance (%) by sector:

Basic Materials sector far outperformed the second highest sector, Healthcare, at an average company performance of 151% and 68% respectively. The only sector that had negative average performance was Utilities at -8%. The top performing company for the quarter was North Peak Resources (NPR:CA) - the stock appreciated 621.52% during Q4 2021 following the company’s announcements on the acquisition of the Black Horse Gold Property in Nevada. 9 of the Top 20 overall performing stocks for the quarter were Basic Materials, likely due in part to inflation fears and gold being a traditional store of value and anti-inflation asset.

From Q1 2022, we were able to derive quite a bit of information. MCRI™ constituents had a total aggregate market capitalization totaling: $38.9B; an average market capitalization totaling: $121.2M; a median market capitalization totaling: $100.9M. Additionally, the image below showcases the breakdown of constituents by exchange listing.

The exchange distribution is an interesting statistic that I’ll be following closely because one of our criteria is searching for “Primary Listing Only”. Many of the 321 MCRI™ constituents are listed on a secondary exchange, OTC Markets in particular. We wanted to use a company’s primary listing for MCRI™ to prevent: multiple stock tickers representing the same company and secondary listings (OTC Markets in particular) only require regulatory disclosure on the primary listing.

whY Mcri™

When we went back into the lab to re-imagine what we wanted to do with our magazine, including going digital only, no longer printing the MicroCap Review, in conjunction with the launch of our new website, SNN.Network, the number one problem I wanted to solve was: how do we make the discovery process easier for any user interested in wanting to dig deeper into the MicroCap universe? The MicroCap

The goal of MCRI™ is two-

fold: First, to curate the user experience by helping them get their start in the discovery process in a universe of stocks that can be extremely overwhelming. Second, to have a benchmark that MicroCap individual investors and fund managers can use to track their own performance against.

Review Index™ I believe answers that question in the following ways:

• The MicroCap universe, just in North America alone, consists of more than 10,000+ publicly traded companies • MCRI™ includes the top 30 performers across every sector; any user now has (at most) 330 companies to explore and understand why and how they performed the way they did, as well as Sector breakdowns to understand why that sector as a whole performed the way it did • MCRI™ can be that first easy-to-understand screen of companies

SNN Network will provide news, resources and information covering the entire global MicroCap universe, however, a curated index helps us as news providers and content creators to better understand what’s happening in this universe on a day-to-day, week-to-week, quarter-to-quarter, year-to-year basis. The goal of MCRI™ is two-fold: First, to curate the user experience by helping them get their start in the discovery process in a universe of stocks that can be extremely overwhelming. Second, to have a benchmark that MicroCap individual investors and fund managers can use to track their own performance against. We believe our simple to understand, clear criteria for the MicroCap Review Index™ combined with our expertise in producing entertaining and informative content revolving around MCRI™ , will provide value for new and experienced investors looking to hone their MicroCap investing skill set.

Robert Kraft is the CEO of SNN Incorporated, publishers of the SNN Podcast Network, SNN.Network, MicroCap Review Magazine, Hosts of the Planet MicroCap Showcase investor conference and SNN Network family of virtual investor events. Since joining SNN in 2011, Robert has transformed the company into a fully-integrated digital media enterprise providing the best in-class news, information, resources, analysis and data covering the Small, Micro and Nano-cap markets. He is the host of the #1 podcast in the MicroCap space, the Planet MicroCap Podcast, which has garnered more than 520,000+ downloads, which he’s parlayed into guest appearances on legacy media networks including appearances in 2021 on “Making Money with Charles Payne” on Fox Business. Robert received a B.A. in Communications from the University of California, San Diego and his M.B.A. from the Pepperdine Graziadio Business School with an emphasis in Finance. He is most proud of being the father to his daughter and son, and husband to his amazing wife.

For more information about SNN Network and the MicroCap Review Index, please visit: www.SNN.Network

Furthermore, we feel that MCRI™ can ultimately become a great benchmark for MicroCap investors and fund managers to measure their performance against. Now you can ask yourself, did my portfolio perform better than the top 30 performing companies across 11 sectors in any given quarter?