KeyOn Communications Holdings, Inc. (fka KEYO)

[VortMax]

In a nutshell here....

40M O/S 45M A/S; http://www.nantworks.com ; Major holdings are iCOS and IDeye

Billionaire Dr. Patrick Soon-Shiong owns 80% of the shell. KEYO has $30M in NOLS to use. He invested $20M into KEYO in 2010/2011 in hopes of helping the fledgling Telcom company build out its rural wifi network, which Shiong could use for his national healthcare initiative; As you read along, its clear that his intention all along for KEYO was for this dream, and he even placed board members into KEYO and forced the existing management out.

“KeyOn will provide a vital piece of this information highway system,” said Dr. Patrick Soon-Shiong. “Connecting rural hospitals and clinics across eleven states with a high-capacity broadband service will enable us to complete the ‘last mile’ of a healthcare information infrastructure for the whole nation.”

Well, the company failed in its attempt to build out its network at no fault to Shiong, but Shiong quickly became the controlling interest in KEYO due to the failure. Yet Shiongs initiative remained clear;

Dr. Soon-Shiong, having built and sold two multi-billion dollar pharmaceutical companies in the past few years, is a physician, scientist and philanthropist who has made clear his intention to develop a comprehensive “health information highway system” throughout the United States. “Actionable information is the key”, stated Dr. Soon-Shiong, “Every American, in every community, should have access to the right healthcare at the right time. Rural communities, the so-called last mile, are losing out. These disparities in care must be addressed. Wireless broadband will give these underserved communities access to 21 st century healthcare, just as it will enable them to be part of the 21 st century economy.”

Having now about 80% ownership of KEYO, Shiong placed Tom Wittenschlaeger in control of KEYO in December of 2011 to handle the wind down of KEYO, leaving the shell for Shiong. What we've come to learn is that Shiong did this because he bought many patents, that were to be the backbone of Nantworks, off of Tom Wittenschlaeger and his Raptor Networks in 2011 and Shiong needed someone to take care of the SEC filings among other things, as listed in Mr Wittenschlaeger's Linked In Profile. In fact, Wittenschlaeger's patents continue to be assigned to Nant to this day, with the latest occurring on March 25th, 2014 just 2 days before KEYO got reinstated. That patent, among others, is in the IBOX. Mr. Wittenschlaeger is currently the CEO of Nantronics, which according to his Linked In says is a division of Nantworks. It would appear that Nantronics is just a place to keep Mr. Wittenschlaeger involved with the company, probably on the R&D side. What's interesting is that Wittenschlaeger has been retained by Shiong for SEC filings as well, which comes into play in a moment.

Since the December 2011 wind down of KEYO, this left Dr. Patrick Soon-Shiong to build out the infrastructure himself over the last 2 and a half years, investing $1B of his own money , and gather patents and acquire over 60 companies in the building of his initiative, which became one giant rollup called Nantworks.

Nantworks is private at this time, but Shiong has a history of taking his ventures public, starting with American Pharmaceutical Partners back in 2001. When you check out the link there, you will see that Shiong was not the best at being public, as he would announce results due to his excitement, among other things, in not the proper order. Shiong was criticized for nearly everything. Even though there was criticism, it appears that everything he announced was correct, and even better than expected in many cases. Nevertheless, it was a learning experience.

Which leads us to 2014.....and the retention of Wittenschlaeger, who is a notable inventor and expert at SEC filings. We all have now seen that KEYO was just reinstated on March 27th, 2014, which had to come at the order of Shiong. So the question is why now? Is he ready to IPO? How much money do they need? How big can his project be?

Well, if you read his Twitter and the Twitter of Nanthealth and check the Press and Video sections of all entities, it is clear Shiong is debuting publicly all that Nantworks has been working on. In any video you can see how cautious he is to not overstate things, and he even refers to learning from his past at 19:50 to 20:50 of this March 1st 2014 video:

http://vimeo.com/89076311

I put all these resources in very quietly to build a national health highway

In fact, it was in that interview from Larry King on March 1st 2014 that he actually goes public for the first time with what they have been working on. Its clear that he and his team are very covert, and as he says, "I've learned the best way to get things done is to just do it." The pet name for the whole project is "Rocket Ship." Why? Is that referring to the value of his new company after going public? Is it just a geeky way of explaining the leaps and bounds in health care he seems to be creating? Is it coincidence that 3 weeks after his Larry King interview he had KEYO reinstated? Would he place Nantworks into KEYO since he owns 80%, has $20M in it already, and it has $30M in NOLS?

Logic would say yes, and this man is a genious.