Intermap Technologies Corp. (ITMSF)

[nanoll]

A failed pump and dump

[nanoll]

What worries me is that management owns very few shares now.

[AssetsBird]

There's a chance that ITMSF gonna be even bigger.

[Capt_Smith77]

Personally I'm not worried about Vertex or the warrants.

The only thing that I have any real concern about is the fact that this company is dealing with a lot of third world countries for it's SDI projects, most of them being located around the equator where it's warmer and you have denser cloud cover. There's also the risk that they can add personnel, equipment, etc before hand and then the deal falls through. I'm unsure if the company plans to add any additional modified aircraft to it's fleet, though that's a possibility as well. Based on what we know, it sounds like the company already has what it needs for the most part to begin the first SDI project, if not the first two. That tells me that the company has already dedicated plenty of resources to this project, so we need payment.

I think once the company receives the initial payment that we'll hear about the second contract being negotiated shortly after, possibly a neighbor of Congo, but that's just speculation.

[nanoll]

The pink sheet listing is a problem for the American institutions and the penny status another for the Canadian ones. What is your take on the warrants and the holdings Vertex has in Intermap?

[Capt_Smith77]

I'm sure that some won't even touch the stock until the royalty is removed. Once it's been announced that the royalty is no longer in play those interested will likely buy in.

[nanoll]

Iope even with 20 or 50 million more in the float that people will see the real value of Intermap.

[Capt_Smith77]

Depends what it will take to get rid of the royalty.

[nanoll]

How many more will they need to sell if they exercise all their warrants ? And then there is also a compensation for the royalty. Any thoughts?

[Zelda Capitals]

Can they make solution out of these?

[Capt_Smith77]

They have to as they already owned 20% of the company's shares and cannot own a greater percentage.

[nanoll]

Vertex sold 4 millions shares. Its in the SEDAR filings.

[Capt_Smith77]

If the company and Vertex negotiate or have already done so to get rid of the royalty, then it can only be for good reasons. It may be a bit early for any other company to buy them out, but if they are indeed entertaining offers or general interest, then I could see a need to get rid of the royalty immediately.

It would seem to be a bit early to get rid of the royalty with the company still waiting to receive initial payment for the first SDI, and before the second SDI contract is announced, but it's conceivable that both parties may wish to get rid of it before these are announced, as the royalty does nothing to increase shareholder value.

Either way I think good news is definitely coming, and any chance that the royalty could be going away can only be seen as a positive at this point.

[nanoll]

Vertex sold 4 million shares. Tthey have another 20 mil warrants and will probable get millions more if they are to be compensated for the royalty. That would mean they would have to sell another 20 mil shares into the market.

[Capt_Smith77]

Waiting for funds to clear to buy some more of this one.

[Capt_Smith77]

It's a fair question and I asked myself the same question, as you would expect quite a few job postings.

I think the answer is probably simple, in that they're likely going a different route than posting jobs to their website. They likely already have everyone in place for their first deal with the DRC outside of Jakarta, and the next hiring phase could be for their second deal that's expected to be announced soon. Just some random thoughts, and it's a good question to ask in their next CC.

[Mitshu35]

Below are a couple of posts (from another message board) which provides some insight on the Jakarta staffing that ITMSF has in place and is about to further ramp-up:

The Indonesia office is a hidden asset, and it is hard at first to appreciate its true value. While the fusion of the collected data is done in Canada and the US, the 70 people working in Jakarta are editors looking for anomalies in the 3D data using Intermap’s proprietary software.

Several competitors and Intermap have tried to automate the process over the years, but no one has been able to do so; it is impossible! You need a human cleaning the data, there is no way around it. None of their competitors have such an extensive operation, and this represents a significant competitive advantage for Intermap. It would take years for a competitor to (1) hire a team of 70 workers and (2) train them.

Additionally, the salary these workers are paid is a fraction of what a similar worker would be paid in North America. While 70 workers seems to be much, they are probably paid $5,000 a year, which is only $350,000. Definitely a great investment and not by any means a huge expense. Even if Intermap has to double their headcount in Jakarta to properly service the SDIs, that won’t move the needle.
Prokofiev
====
"Jakarta will include a large increase of people for software editors. Intermap increases or reduces the staffing in Jakarta as needed for data editing. The important factor here is that Jakarta staff are 1/12th the cost of North Americans. It’s a very cost effective facility. And so that is where the bulk of the hires will be."

The Intermap office is registered as PT Exsamap and per LinkedIn profiles, they have employees that have been with them for 11+ years (HR Manager). The Examap office runs 3 shifts (or did in 2008). Indonesia is a great low cost region and Intermap did well to place a team in this area vs say China. In addition, the exchange rate has gone from about 8000 Rp per USD 4 years ago to currently 13005 Rp per USD due to the strength of the dollar. Jakarta minimum wage is 3.1M per month which equates to $238 per month. Higher skill university graduates would make around $500 per month and people that stick with you for many years are at about $1000 per month. Minimum wages have risen 20-30% per year the past three years as well, but wage wise, Indonesia is considerably cheaper than China, Philippines, Thailand, and Malaysia. I'm a bit biased as I moved to Indonesia in 2003 and run our US Corp office here. ; )
Intermap's Indonesia office could double or triple, and the OpEx difference wouldn't move the needle in a big way. You are right, that is a big advantage to have such an experienced staff.

[MostActive]

I am a long here and took a position last week. Curious as to why the website does not have any offers for employment. .....

[bababooyah]

I guess street wants to see the down payment hit ITMSF's balance sheet.

$143 million contract over 3 years is $47 million per year. Add in other business. Conservatively $3 million per year. That equals $50 million per year. 2X sales with 100 million OS would equate to a $1.00 share price.

Those are conservative numbers. It's my understanding the contract will be about 2.5 years....or $57 million per year + $3 million = $60 million per year. 2X sales gives $1.20 per share.

Now with all the new hiring (note how in CC they said they wouldn't need to add many employees to service the $175 million contract) it points to another mega deal imminent. The 2nd mega deal will just add to the revenues, profits and eventually share price.

An absolute market gift (30 cents) if you believe these 2 deals will be in progress within a year.

I will keep adding as much as possible until it starts getting past .50

[nanoll]

Don't know why we are still under 1$ ....

[Capt_Smith77]

Global 3D Mapping and 3D Modeling Market 2015-2020

3D Projection Mapping Has Emerged as Attractive Medium for Enterprises

DUBLIN, IRELAND--(Marketwired - March 02, 2016) - Research and Markets announced the addition of the "3D Mapping and 3D Modeling Market -- Forecast to 2020" report to their offering.

The overall 3D mapping and 3D modeling market size is expected to grow from $1.90 Billion in 2015 to $16.99 Billion by 2020, at an estimated CAGR of 55.0%.

The 3D mapping and 3D modeling market can exist independently, but the playing fields are still the same. Nowadays, vendors are providing 3D mapping and modeling applications for various industry verticals such as healthcare, automotive, transportation, and logistics, aviation and space, building and construction, defence and public safety, media and entertainment, and lastly for the retail sector.

This application is often used by artists to attract their customers. Presently, 3D projection mapping has emerged as an attractive medium for enterprises to advertise their offerings and target as well as retarget the audience.

Another application of 3D mapping is mapping and navigation, which is specially designed for mobile devices. These applications are widely being used by organizations that provide 3D content of urban, semi-urban, and rural environment.

The Year-over-Year (Y-o-Y) growth rates of 3D mapping will be on the higher side throughout the forecast period. A few high growth markets are:

Media and Entertainment: Mapping (real-world images) and Modeling (merging 3D effects)
Construction Purposes: Mapping (neighborhood location) and Modeling (to construct buildings)
Healthcare Industry: Mapping (human anatomy) and Modeling (surgery process)
Automobile Industry: Mapping (assembly line) and Modeling (prototype)
Transportation Industry: Mapping (streets) and Modeling (smart transportation)

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

6 Industry Trends

7 Analysis, By Type

8 Analysis, By Application

9 3D-Enabled And 3D-Enabling Devices And Its Influence On 3D Mapping

10 Analysis, By Industry

11 Geographic Analysis

12 Competitive Landscape

13 Company Profiles

Airbus Defence And Space
Autodesk
Cybercity 3D
ESRI
Google
Intermap Technologies
Saab
Topcon Corporation
Trimble

For more information visit http://www.researchandmarkets.com/research/h6qvln/3d_mapping_and_3d

[bababooyah]

This could be a biggie.

I'll be adding next week :)

[Capt_Smith77]

Intermap Technologies Corp., a mapping technology company, received a $175 million contract in February. The company currently employs 55 people and has another 105 at offices in Jakarta, Indonesia; Calgary, Canada; and Prague, Czech Republic. The company expects to double its headquarters work force, triple staffing in Jakarta, and add about 10 percent to the staff in Canada and Europe.

http://www.metrodenver.org/do-business/news-deals

[nanoll]

Intermap Announces Debt Restructuring





Denver, Colorado, March 3, 2016 – Intermap Technologies Corporation (“Intermap” or the “Company”), (TSX: IMP), (ITMSF: BB), a leading provider of geospatial solutions, today announced that it has entered into an agreement with its senior lender, pursuant to which two of its outstanding promissory notes, which became due in February 2016, were restructured and consolidated into a new promissory note that bears interest at 15% per annum, with a maturity date of August 24, 2016.

The material terms of the debt restructuring are as follows (all $ amounts shown are in USD):


- Promissory note dated February 23, 2015 (“First Note”), in the principal amount of $1,500,000, bearing interest at 25% per annum ($375,000 in accrued interest), was cancelled.
- Promissory note dated February 24, 2015 (“Second Note”), in the principal amount of $5,800,000, bearing interest at 25% per annum, ($1,450,000 in accrued interest), was cancelled.
- The principal amounts and accrued interest due under the First Note and the Second Note were restructured and consolidated into a new note dated March 2, 2016 (the “Restructured Note”), effective as of February 24, 2016, in the principal amount of $9,125,000, bearing interest at 15% per annum, with a maturity date of August 24, 2016.
- The Restructured Note is secured by way of a first priority lien on all of the assets of the Company.


"We are pleased to report the restructuring of a material portion of the Company’s outstanding debt," said Todd Oseth, President and CEO of Intermap. "Coincident with SDI work preparations and other business developments, we continue to work towards the simplification of the Company’s capital structure."

[bababooyah]

I can see that happening also.

I like to be conservative and be pleasantly surprised if expectations are exceeded

[Capt_Smith77]

If everything falls into place, it could go much higher than that.

I'm hearing that they'll soon announce a complete restructure of their debt, including the possibility of getting rid of the royalty, which would make perfect sense for all parties.

They're very close to getting that 12M down payment from the Congo deal, and it sounds like April is the month that they'll see this payment, which is the catalyst for upcoming deals.

Then there's the second mega deal the company has been working on, and there are leads on that as well that it could be announced in the same time frame as these other two events.

We have the possibility of seeing three grand slams in the same inning. It wouldn't shock me if the PPS shot up to $2+ if they can deliver on all three.

[bababooyah]

Have I mentioned I like this one to hit $1.00 by summer?

weeeeeeeeeeeeeeee

[CashCassone]

Watching closely. this could head higher

[Capt_Smith77]

Bought some more shares Monday morning, so I'm done buying for now. Wish I could afford more at these prices.

[Capt_Smith77]

Looking to buy some shares of ITMSF this morning.

[bababooyah]

Must see video on ITMSF. I'm not the only one who thinks stock is undervalued.

https://drive.google.com/file/d/0B9mr6S-GkVLWem84ZVJJT1NiYXc/view

[bababooyah]

Reloading on any weakness.

weeeeeeeeeeeeeeeeeeeeeeeee

[AlexSwiss]

thanks to share! I bought my position in the 0.60s, but I averaged down in the 30s

[Mitshu35]

Mark Gomes bought almost 1M ITMSF Shares. His email is below:

On February 9, Invesco announced the departure of Ian Hardacre, portfolio manager of Invesco's billion-dollar Trimark Canadian Fund. Trimark owned approximately 8 million shares of Intermap (ITMSF). According to my sources, Invesco did not attempt to contact Intermap. Instead, they simply hit the sell button.

So, 8 million shares flooded of Intermap the market. Incredibly, this happened on the heels of Intermap executing a $175 million megadeal.

For those who recall, ITMSF topped 60-cents after announcing the original Letter of Award. Obviously, a completed contract is more valuable. Initially, the market responded properly. Intermap instantly doubled... and I was still buying.

However, Invesco's shares were too much for buyers to quickly absorb. The stock lost momentum and buyers (including me) lost conviction in the near-term direction of the stock. Surely, many of us said, "If someone is selling, let them sell. I'll buy when they're done."

With the buyers sitting on the sidelines, Invesco's selling drove Intermap's stock price down.

With the confirmation of Intermap's $175 million megadeal, I believed that the stock would move toward $1 per share. Instead, Invesco rained on that parade. However, selling shareholders doesn't mean that a company is worth less. Most of the time, it just makes the stock more attractive (cheaper). That is especially true when the selling is forced or blind, as is the case here.

Nonetheless, based on what I have gathered, the selling is done (or very nearly done).

Further, there were/are a number of investors who have been monitoring this situation. It became something like a high-stakes game of chicken. Nobody wanted to buy the stock if Invesco is going to push it lower. However, if everyone waited until Invesco's shares were gone, there could be an incredible rush to buy the shares. Considering that the stock's fair value could be triple its current price, I suspected that "a rush for the shares" was exactly what was going to happen.

My philosophy is to not play those games. I like to buy stocks when they're cheap (even if it's a little early)...

...so I stepped in and bought close to a million shares between Thursday and yesterday.

I have more information to share, which I'll provide in a video later today. For those who want the short story now, I have seen some of the contract paperwork. The structure gives me confidence that the deal will be funded in relatively short order. I also believe that this deal will put pressure on other potential customers, because Intermap can only handle one more of these deals without expanding its capacity.

Because of these things, I view Intermap as a less speculative stock with very attractive potential reward relative to the risk. Many risks still exist, but I'm comfortable with them. If I lose, I lose... but considering the progress that has been made, there's no way I could sit on my hands without increasing my position.

More later. Stay tuned!

[Mitshu35]

Excerpts from an old (2013) interview below, just for a reminder of what we have, potential opportunity and outlook:

Next comes the new innovation of what do you do with the data? When you start to think about applications, they need a contiguous database for processing. Most of the countries in Europe have different formats for their geospatial data. France is different than Germany which is different than Italy. The challenge becomes, if you're doing a large-scale flood model, you need that contiguous database that doesn't care about whether you're in France or Germany because you need consistent data across the area of evaluation.

Today there's no one else that has a contiguous database for all of Western Europe. No one, not even the U.S. government, has it for the United States. Intermap does. So the database is a unique asset that is now being monetized through the development of software applications.

I've heard you talk about the cost savings your solutions can bring to customers.

Todd: In each industry it varies. But in industries that use surveying it can save large amounts of dollars. For instance, for a telco application to determine if two towers can see each other they survey two locations. They would typically deploy 4-5 people and evaluate if the two towers have a clear line of site. In today's labor rates, it takes about $1,100 to evaluate one link or two towers, two sets of people climbing to the top of each tower with a laser and sensor.

With our application it will take about 20 seconds to do the computation, and you never leave the office. That saves, maybe, $1,000. I mean, it's a huge savings for the companies that have to put together the backhaul network since they no longer have to send out crews to do the survey. A large city may have 60,000 to 70,000 towers to evaluate.
That's a $60 million-plus bill for a telco in order to get those measurements manually for each city?

Todd: We're charging a few pennies but otherwise it would cost them millions of dollars. You've got companies like Verizon, T-Mobile, Vodaphone, and DragonWave that need these networks.

What we are building is unique in the industry and is extremely powerful technology. My focus is on monetizing these incredible assets through customer wins. But to answer your question, do I anticipate that what we are creating will be the envy of a larger company that could seek to acquire us? I do. That would make a lot of sense for them, innovation is the key to all businesses.

[Mitshu35]

Nice stead buying, including some large blocks. Apparently at least 3 brokerage houses have been buying pretty steadily over the past few days. I picked up more shares myself this week. Market cap is so low compared to the value of just the first SDI contract...just an incredible buying opportunity. I think we'll see the second SDI deal announced by/in early Q2, but that's just a total guess on my part.

[Jp111]

This will now start to pick up momentum- by April we should see this at .75-$1. Once the financing is complete and a press release is put out and the $12m is in the bank acct.

[514]

Liking this

[nanoll]

The trend was brining it above 60 cents until that big seller . I hope it can at least break that soon

[Jp111]

This is also now the largest position by far in my portfolio. Im probably responsible for all the buying at .239c on Friday. I'm going big or bust with Intermap.

[Jp111]

Agreed - we should see the $12m before the 1st week of April - as that is when the $3.5m note is due as per their other press release

[nanoll]

It should have a nice bump once they get the 12 mil $ . Don't know what the share price will be by then but momentum should have brought this to 1$ by now. Maybe this spring

[Mitshu35]

Large seller(s) seems to be done now. Looks like people are stepping up to buy. Still a little risk here but seems like a no brainer to buy at this price if you don't mind holding for a while to see how things work out.

[nanoll]

Its less than 30 cents on this huge deal.

[Mitshu35]

Bought another chunk of shares today. Price is really cheap given the derisking that is now in place. Just a matter of time before we start moving up...either with the $12M financing in hand and/or the second contract being executed - either of these could happen at any time. I would buy more if I had more funds available.

[Jp111]

I have personally tripled my position in ITMSF at this price. Hopefully it moves up over the next few weeks and it definitely will once the $12m check gets deposited on the closing of this deal.

[Jp111]

The reason why it's not $1+ already is because Invesco is selling all of its position for this one PM. I don't think they are aware of the deal or the lucrative potential.

Invesco shakeup
Hardacre out at Invesco
SEAN SILCOFF, CLARE O'HARA
00:00 EST Tuesday, Feb 09, 2016

Streetwise

One of Canada's longest-serving mutual-fund investment managers has been shown the door.

Ian Hardacre, head of the Canadian equities team at Invesco Canada (previously Trimark Financial) and a 19-year-veteran of the firm, was let go in late January after a poor showing by the flagship $1-billion Trimark Canadian Fund and other funds under his watch over the past 18 months.

Mr. Hardacre declined to comment but sources in the investment industry say the value-style manager was stung by the same thorn that hurt many value managers in the last year - an overweighting in the oil and gas and gold sectors.

Though gold has rallied recently, the price of oil has not only failed to rebound but sagged to much lower levels than when value managers invested in 2014 and 2015.

An Invesco spokeswoman declined to comment, referring to a news release in which the company said Mr. Hardacre had been "replac[ed]" and had left "to pursue other interests."

The firm thanked Mr. Hardacre for his service and said "he has played a significant role" in developing its talent and "instilling the values of collaboration and accountability."

"Every money manager goes through performance slumps," said Dan Hallett, vice-president and principal with HighView Financial Group. "Over the last full cycle, [Mr. Hardacre's] funds were one of the best performers and one of the few to outpace the benchmarks." He added that "investors and advisers have come to expect funds with the Trimark label to outperform in down markets," which wasn't the case in 2014 and 2015. "So, delivering returns that are in sharp contrast to expectations help to add context to this situation - and are less likely to be tolerated because the performance pattern is out of character."

Some observers noted Mr. Hardacre succumbed to a similar fate to his predecessor, Vito Maida, a deep-value manager who was turfed by Trimark in the late 1990s after the funds under his watch underperformed. Mr. Maida had bet heavily on undervalued commodities and gold instead of the banks and Nortel, which he thought were overvalued. History ultimately proved he had made the right call, but he was long gone.

Interestingly, Mr. Maida, who now oversees about $1-billion in assets at Patient Capital Management Inc., has invested close to one-quarter of funds in energy equities since December, 2014, up from about 5 per cent before.

Although the value of those stocks have dropped by about 25 per cent, Mr. Maida says he's "absolutely" content with his decision, based on his belief that the price of oil will return to its long-term average of $60 (U.S.) a barrel within three to five years.

Mr. Hardacre - whose medium- and long-term returns were also hurt by the sharp fund value declines since mid-2014 - apparently didn't have that amount of time given recent management changes at Invesco Canada, including the promotion last year of his new boss, chief investment officer Rob Mikalachki.

Mr. Hardacre kept a low public profile during his days at Trimark/Invesco but played an active role on behalf of shareholders in closed-door meetings with corporate Canada. He helped to secure a better bid for Molson Inc. shareholders when the Montreal beer giant merged with Adolph Coors Co. in 2005.

He also helped lead a successful bid to overhaul the board of hardware retailer Rona in 2013 after it rebuffed a takeover offer from U.S. giant Lowe's Cos. (The Quebec company finally agreed last week to a takeover bid by the U.S. company.) Mr. Hardacre escaped most of the carnage other fund managers felt with the explosion of the dot-com bubble and the implosion of Nortel Networks Corp.

In Mr. Hardacre's place, Invesco's Canadian equity team will be led by Trimark vice-presidents Alan Mannik and Clayton Zacharias, and vice-president Brian Tidd will take over the Canadian equity income team. Mr. Mannik, lead manager on two funds, takes over from Mr. Hardacre as lead manager of the Trimark Canadian Fund and Invesco Select Canadian Equity Fund.

[Arboset]

We are all making a similar conclusion, so today may give us a thrill.

[bababooyah]

1.00+ by summer :)

[nanoll]

Hope to see 1.50 soon.