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http://epsteinresearch.com/2019/04/11/tower-one-wireless-the-blue-skys-the-limit/
Tower One Wireless, the Blue-Sky’s the Limit!
by Peter Epstein, MBA | posted in: Argentina, Colombia, Mexico, Tower One Wireless | 0
**Figures in C$ unless otherwise noted, tower valuations & financial metrics are estimates only**
In a past life, I was a corporate bond analyst. The Big 3 wireless tower leasing companies, American Tower [NYSE: AMT], Crown Castle [NYSE: CCI] & SBA Communications [NASDAQ: SBAC] were low-rated entities, even by junk bond standards.
Here’s a quote from Moody’s initial bond rating of Crown Castle in 1997,
“Moody’s has assigned a B3 rating (low end of junk credit) to Crown Castle’s US$100M notes due 2007. The ratings reflect the high level of debt relative to near-term cash flow; revenue concentration with 2 customers; and the expectation of future acquisitions, which will likely maintain high debt leverage… “
Tower One Wireless, [CSE: TO] / [OTCQB: TOWTF] is a telecom infrastructure company with a market cap of $7.5M (as of April 8th, 93.4M shares outstanding, < 96M shares fully-diluted). This Company reminds me of Crown Castle 22 years ago. As of the end of March, Tower One had a total of 82 towers in Argentina, Colombia & Mexico. 18 had 2 tenants on them. So, there are 100 paying tenants. On average, each tower has 1.22 tenants. Therefore, the “co-location” rate is 22% or 1.22x. Another 31 towers are under construction.
Tower One Signs Blockbuster Development Deal for 150 New Towers
Management recently generated $3.4M in non equity-dilutive working capital by selling 23 towers in Colombia for 15 times Tower Cash Flow (“TCF“). Tower One built them for US$900K, and sold them for US$2.6M. The Company just signed a development deal with a Third Party for the construction 150 towers in Colombia & Mexico. This is perhaps the biggest event in the Company’s history. US$1.8M has already been advanced. Funds drawn down have a 0% (zero) interest rate and there are no debt covenants. Instead, milestones dictate the release of funds. There’s no cap on how much the Third Party will advance.
The Third Party will purchase towers from Tower One at 15x TCF in the first year. Then, for a period of 2 years, the Third Party will pay 10x TCF for every additional tenant that lease the towers. TCF is 80%-85% of gross tower rent. It costs Tower One $85K to build a tower. It can sell it to the Third Party for $148.5K ($1,000 rent x 12 months) times a 82.5% TCF margin = $9,900 in annual TCF. $9,900 times a 15x multiple = $148.5K/tower. Plus residuals, or earn-outs of 10x TCF for additional tenants. If on average the sold towers were to have 1.2 tenants after 24 months, that would be an incremental $19,800/tower, for a total of $168,300. At 1.3 tenants/tower, it would mean an extra $29,700/tower.
This is an attractive deal for both parties, the Third Party gets cash-flowing towers where the heavy lifting has already been done and at an attractive price. Tower One benefits as it could end the period (after selling 150 towers) with several million in cash & minimal debt. Management will then be in a position to obtain longer-term, lower-cost funding from a wider range of entities. Tower One will keep the towers it builds using its longer-term funding, allowing those assets to grow more valuable. {see What Might a Tower be Worth? section below}
Despite my enthusiasm, it’s far from certain that this Company will thrive. Management needs to execute, which has been a big problem because Tower One has been underfunded & understaffed. If management can arrange steady, multiple-year funding from this Third Party and other sources, they will be able to focus on what they do best… building & leasing towers!
?Co-location Offers Huge Incremental Margins
Co-location is the secret sauce of the tower leasing model. 90%+ of the total cost for 2 or 3 co-located tenants, is incurred at the time the tower is built. The incremental margins are huge. Unused space available to host a 2nd or 3rd tenant is a valuable intangible asset. Tower One’s structures cost $80,000-$90,000 and can accommodate up to 3 tenants. Each tower is, “built to suit,” meaning that an anchor tenant is in place when the structure is completed. Contracts are long-term; 5-10 years, plus multiple 5-yr. options. Contracts are typically, “take-or-pay.”
Argentina, One of the Best Markets in the World
Argentina has a lot of tower infrastructure catching up to do. The economy languished under the previous government that was unfriendly to foreign enterprises (including wireless carriers, like Claro – Mexico and Telefonica – Spain). As a result, Argentina is one of the best markets in the world to be a builder of telecom infrastructure. Consider this commentary from last year….
Quote, Olivier Puech, CEO – LatAm, American Tower:
“Two critical factors pushed American Tower to enter Argentina. We are talking about a country which is lagging behind in the deployment of 4G, the densification of infrastructure & fibre connectivity. With about 15,000 existing sites, we estimate that at least 10,000 more are needed in the next few years to bring the level of coverage & capacity up to regional standards.”
10,000 new towers, split among 8 builders, over 3 years… that’s 417 towers per year, per builder. If Tower One could build 10/month in Argentina, (120/yr.) that would be a tremendous accomplishment, potentially setting the stage for a higher valuation. Mexico is also a strong telecom market, consider what a senior executive from American Tower said at a UBS event on 12/4/18,
“I think Mexico has probably been our best international market over the last couple years from a growth rate perspective, driven by the deployment of 4G… So we think there’s a solid trajectory there, where you’re going to be able to sustain mid-teens organic growth…”
And, from American Tower’s February earnings call,
“…In Latin America demand remains strong with carriers focusing on improving & extending 4G networks…. we expect new business additions to increase by ~10% year-over-year. Given the acceleration of network densification needs for 4G, we’re excited about our build-to-suit program. Our outlook implies new builds in LATAM will increase by > 50% versus last year. International growth was supported by significant network spending by tenants across our footprint, especially in key markets like Mexico…Our teams down in LATAM are really excited about the levels of investments that are being made all over the region…“
What Might a Tower be Worth?
How much might a tower with a lifespan of 20+ years be worth? It’s reasonable to assume that the co-location rate will increase over time, but by how much and how quickly? In the chart below, I show that at $1,000 rent per tenant, per month, annual revenue is $12,000. For (an average of 1.1 tenants / tower, a co-location rate of 10%) annual revenue would be $13,200/yr., and it would be $14,400/yr., for (1.2 tenants / tower, a co-location rate of 20%), etc….
With annual revenue per tower currently $14,400, we can estimate the value of the Company’s towers. $14,400 x a 82.5% TCF margin x a 15x TCF multiple = $178.2K. The Company has 82 towers x $178.2K = $14.6M, just shy of twice the current market cap. {See chart below). Look at the valuation metrics for AMT, CCI & SBAC. The average multiple of (trailing 12-month) EBITDA, a proxy for cash flow, is 24.5x.
I assume an annual 2% rent escalator increases rent to $1,061 / month / tenant in 3 years, and the towers have an average co-location rate of 1.4x (40%) at that time. In 3 years, a tower at a 15x TCF multiple might be worth $220.6K {see chart above}. Three more years of +2% increases and the rent might be $1,126/month, and the co-location rate 1.6x (60%). In that scenario, a tower could be worth $267.5K. The point of this exercise is not to precisely say what a tower will be worth, but to show that increasing rents & co-location rates have a multiplier impact on tower valuations over time.
Despite the compelling math of potential tower valuation, timing is a big risk factor. If management were to take down a lot of debt, but then was delayed in their tower buildout, that would be a BIG concern. There have already been delays over the past 18 months. Some towers that were in backlog fell out of backlog. Luckily, the Company has a modest debt balance.
Tower One’s Mgmt. Team & Select Board Members
Alejandro (Alex) Ochoa, President, CEO & Director
Mr. Ochoa is co-Founder of Tower One Wireless. He has > 18 years’ experience in financial services, working at Morgan Stanley Dean Witter, Prudential Securities & Raymond James. Most recently he served as consultant to Mackie Research Capital Canada’s Investment Banking Practice with a LATAM focus. Over the past 6 years, he helped start 2 other Tower companies. Dedicated to LATAM, his areas of expertise include mining / energy transactions in advisory, capital raises & strategic asset sale roles with transactions in Colombia, Mexica & Peru. He has covered Telecom Infrastructure Companies from the U.S., Argentina & Colombia. Mr. Ochoa is fluent in Spanish and understands South American Capital Markets.
Luis Parra, COO
Mr. Parra was a Co-Founder of Ingeant SA. He currently co-manages the operation of Ingeant SA iColombia and advises companies on the development of infrastructure projects. Parra worked at Ecopetrol with responsibility for the Barrancabermeja refinery and managed the operation of QMC-TELECOM in Colombia. Luis has worked throughout South America, managing various operations in the Dominican Republic, Peru, Costa Rica, Panama & Colombia. He has a civil engineering degree and a degree in Finance & Project Evaluation.
Santiago F. Rossi CFO
Mr. Rossi is a senior financial & business development executive with a history of success in challenging global business environments. He has > 20 years’ experience in demanding positions with international telecom, tech and oil & gas corporations. He’s recognized for his sound decision-making ability and a proactive approach. Mr. Rossi has a solid record of success in M&A, including leading negotiations & managing people, processes & systems integration. He has managed equity financings & exit transactions with PE firms & international financial firms. He has been a key contributor to the buildout of the world’s leading provider of global satellite-based connectivity & media services for mobility markets on land, sea & air, serving > 400 corporate clients in > 120 countries.
Rolland Bopp, Advisor
Mr. Bopp has an extensive background at senior levels in telecom, including as Chairman, President & CEO of Deutsche Telecom Inc. New York, and Executive VP, and member of the operating board of Mannesmann Corp. in New York, NY and Düsseldorf, Germany, a US$ 20 billion global engineering & telecom service company.
Octavio De LaSprilla, Country Manager (Colombia)
Octavio De LaSprilla was formally COO of Continental Towers. He helped expand the portfolio to over 200 towers in a 2-yr period. His role today is the interface of Tower One with the 4 principal wireless telecom operators of Colombia.
Carlos Reyes Regional Director – Latin America
Mr. Reyes has extensive telecom-related operational experience including building BTS towers throughout Colombia. A former C-Level executive at LatAm based wireless & satellite communications companies. Mr. Reyes’s previous work experience includes managing Torres Unidas infraestructura Colombia – a subsidiary of Torres Unidas Group.
Robert “Nick” Horsley, Director
Mr. Nick Horsley has > 13 years’ capital markets experience in finance, investor relations, marketing management, merchant banking and M&A. Mr. Horsley has served as a Director and a consultant to several public & private companies and has worked in a variety of industries including: consumer goods, energy, nutraceuticals, pharmaceuticals & technology.
Fabio Alexander, Director
Mr. Alexander is Founder & CEO of Executive Investment Partners LLC; a diversified investment company based in Miami, Florida with holdings in various industries including Aviation, Mortgage Banking, Technology, Insurance, Real Estate & Retail Services.
Conclusion
Data usage is soaring the world over, analysts forecast it doubling or tripling in 5 years. The wireless business is booming. But, there can’t be a boom without substantial growth in underlying telecom infrastructure. The upcoming switch to 5G might be a few years off in Tower One’s markets, 4G upgrades are in full swing. Argentina is in great need of new towers. Tower One Wireless [CSE: TO] / [OTCQB: TOWTF] is an up-and-coming leader in Argentina.
The Company signed a very important development deal with a Third Party to build and sell 150 towers, an attractive deal for both parties. Will 2019 be the breakout year for Tower One? Will there be months where 20 or 30 towers get built? If so, a market cap of $7.5M is far from aggressive. A company that could get taken out in 2020 or 2021 by a growing list of potential suitors. Top on the list could be the Third Party who has done their homework and has committed a considerable amount of time & capital to Tower One.
Disclosures: The content of this article is for information only. Readers fully understand and agree that nothing contained herein, written by Peter Epstein of Epstein Research [ER], (together, [ER]) about Tower One Wireless, including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered implicit or explicit investment advice. Nothing contained herein is a recommendation or solicitation to buy or sell any security. [ER] is not responsible under any circumstances for investment actions taken by the reader. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. [ER] is not directly employed by any company, group, organization, party or person. The shares of Tower One Wireless are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.
At the time this article was posted, Peter Epstein owned no shares in Tower One Wireless and the Company was an advertiser on [ER]. Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he’s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful. [ER] is not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. [ER] is not expected or required to subsequently follow or cover events & news, or write about any particular company or topic. [ER] is not an expert in any company, industry sector or investment topic.
they moved on from that, too dilutive. they got a better deal via JV, no dilution and interest free financing.
$TOWTF
Towers Sold - 23
Cash Received - US$2.6M
Actual Sale/tower - US$113,043.48
No. of towers currently - 82
Value of Towers based on actual sale price - 82 * 113,043.48 = US$9,269,565.22
Cash received - 2.6M
value of company excluding debt - US$11,869,565,.22
Estimated amount of debt - US$3,007,518
Value of TO less Debt - US$8,862,046.42
Cash flow from 100 tenants - US$602,669.17/year
Fully diluted shares - 102,004,647
Value of TO/share - US$0.09/share, including cash flow - US$0.093/share
convert to canadian - 1.33*0.093 - $0.123/share.
so, that's my current valuation as of now. this does not include the 1.8M infusion by the third party or the 150 plus towers to come in the near future.
i am a buyer at any price now. this company has just validated itself by actually selling real towers and by having a third party fund them to do a Joint Venture.
Tower One Appoints New Chief Financial Officer
https://finance.yahoo.com/news/tower-one-appoints-chief-financial-130000142.html
VANCOUVER, British Columbia, March 01, 2019 (GLOBE NEWSWIRE) -- TOWER ONE WIRELESS CORP. (CSE:TO) (TOWTF) (1P3N.F) (“Tower One” or the “Company”) announces it has appointed Santiago F. Rossi to the position of Chief Financial Officer (‘CFO’).
Mr. Rossi is a senior financial and business development executive with a history of success in challenging global business environments.
He has over 20 years of experience in highly dynamic and demanding positions with international telecommunications, technology and oil and gas corporations. Described as a persuasive and tenacious business partner, he is recognized for sound decision making ability, a proactive approach to support and motivate others, and has led consensus building initiatives in diverse multicultural environments.
Mr. Rossi has a solid record of success with M&A roles, including leading several negotiations and managing people, processes and systems integration. He managed equity funding and exits transactions with PE firms and international financial institutions.
He has also been a key contributor to the successful build-out of the world’s leading provider of global satellite-based connectivity and media services for mobility markets on land, sea and air, serving more than 400 corporate clients with 6,500 aircraft, 1,600 vessels, 100,000 cruise ship cabins, plus thousands of land based sites in more than 120 countries.
“We are excited to welcome Santiago as our new CFO,” said Tower One’s CEO Alex Ochoa. “Santiago brings extensive financial, operational and strategic experience. This, combined with his knowledge of the telecommunications industry and experience scaling high-growth global companies, will be a huge asset to Tower One as we enter our next phase of growth.”
Notably Mr. Rossi’s relevant telecommunication experience includes the role of CFO at Emerging Markets Communications, now Global Eagle Entertainment, for seven years. His role included overseeing all accounting, financial planning, treasury, legal and IT functions for EMC and its subsidiaries in Europe, North and South America, the Middle East and Africa. He joined EMC in 2006 as Corporate Controller. With a strong background in Corporate Finance, Accounting, Planning and Control and a passion for Business Development, Mr. Rossi has managed transformative industry programs and multiple acquisitions, resulting in notable business growth for EMC.
Additionally, Mr. Rossi was Impsat Fiber Networks, Inc., now Century Link Corporate Finance Manager. Impsat was a leading Latin American telecommunications provider and in his role he was responsible for the financial supervision of the HQ and operating subsidiaries across Latin America.
Mr. Rossi will succeed Abbey Abdiye, who will be taking the role of Chief Accounting Officer.
Join the club 2late. however, i have been adding at current prices. to me the company seems undervalued here.
Insider buying has begun
October update has us at 63 completed towers now. 16 towers going up in Mexico. $TOWTF
Two more towers in Colombia going up and it seems 3 or 4 towers have started in Mexico!! $TOWTF
https://www.facebook.com/pg/toweronewireless/photos/?tab=album&album_id=805387776298105
ok, seems i might be the only one here now then. i might be adding more.
New Investor deck for $TOWTF https://www.sedar.com/CheckCode.do
TowerOne raising $30M with Raymond James as sole booker
Not alot so far, but better than nothing.
https://webfiles.thecse.com/Tower_One_-_CSE_Form_9_October_2_2018.pdf?mBySonZY7MIuE5r1wIDk5faqg3NI5Jnv
$CAD 274,900.00 in funds raised so far for $TOWTF.
Revised Annual Information Posted on $TOWTF
https://webfiles.thecse.com/investorx/TO/1810011622147689.pdf?BHmYZpPG60BvcdY92AL7JVg8J9PaM9Sj
$OPRX
Their 8K says alot!! Change of control bonus!! what are they hinting at?
“As a universal and new change, the Company’s bonus plan was amended to include a change of control bonus ranging from $0 to up to $750,000, depending on the transaction price, for each of these four executive officers, if a change of control transaction occurs in either 2018 or 2019.”
At present TO has 490 in MLA backlog. Assuming US$75K/tower, then thats US$36.75M to buildout the backlog.
Lets say they get the $10M Bond, now i have no idea if this is Canadian or a USD bond. i will assume canadian. so, 10M CAD is around US$7.6M.
this then leaves US$29.15M left to find.
Assuming the worst case financing at say US$0.10/share or CAD$0.13/share, then that will be 291.5M more shares for a total of 384.84M shares (sounds horrible).
So, now that the financing is complete, with the backlog of 490 towers, add that to the 50 we have currently, then over time gives us 540 towers. Assuming, 30% colocaiton, then out of the 540, we have 162 colocated.
So, assuming we have no more build outs or additional financing or backlogs and just work with this for now, then TO's value works out to be around US$0.323/share when using the 15 times TCF valuation.
this assumes that when they have all this dry powder they still build towers for 75K, which i doubt. i am sure with mass buying of materials, they could drop tower builds to 65K.
i dont think financing will be done below 15cents/share canadian. cause if that was the case, we should have raised money a long time ago. so, this dilution count could improve, which in turn improves the future value per share.
just my thoughts on equity financing if it comes.
$TOWTF
Lots of posting by TO on SEDAR, AIF, Intent to file short form prospectus and something on warrants.
$14.5K moved this stock 18.8%. imaging if someone wanted $100K worth? LOL, illiquidity.
$TOWTF 50 towers now and 15 Colocations
https://finance.yahoo.com/news/tower-one-september-120000749.html
Big moves now, Raising 10M in bonds https://webfiles.thecse.com/Tower-33801571_1_Tower_One_-_Final_CSE_Form_9_-_August_2018_.pdf?VDMA5t1nQ2yy1GCNduOG0k6vEhrd2f1C
Should be market moving.
i think their days of updating every second is over. Right now, i think the CEO's only focus is raising capital for the backlog of towers they need to build. He pulls this off in a shareholder friendly way, you will be kicking yourself on the opportunity being offered currently.
And even if he doesnt pull off the financing, the market is pricing the company for less than it is worth anyhow. So, i think downside here is limited and upside could be religious if Alex gets it right.
i keep in dialogue with Nick and occasionally the CEO. When you email them they respond.
While that person is selling i am adding occasionally. The stock price is below their IPO price basically. Their first initial raise as TO was at $0.15 canadian when they had no revenue and no towers. Now, they have 42 towers, over 400 towers in backlog and monthly revenues.
To me, using their simple numbers in their Investor presentation of 15 times cash flow valuation then
30 towers with no collocation would be valued at US$5.4M
12 towers with 2 tenants would be valued at US$4.32M
Current BV of TO on towers only now would be US$9.72M/93M shares is US$0.10/share on their towers only.
Currently they have another 30 being constructed.
Now, i know they borrowed $1M recently, so take that out which brings it down to US$0.09/share
I assume no value to their MLA agreements, so thats $0
I was told that TCTS revenue run rate is around US$3,000,000.00, lets say half that to be safe, so US$1.5M, lets value that at 1 times revenue, so TCTS is US$1.5M, we own 70% of that company or US$1.05M or $0.01/share
There should be some value put on the towers under construction, so i gave that around US$10,000/tower times 30 towers which is US$300K
tallying all of that would give me a BV of TO of US$10.07M or $US0.108/share or $0.11/share.
Now, i looked at the average Price/Book of the big three towers and that turns out to be 3.21 * BV.
i am not even including a multiple on TO as they need to prove themself.
so, at the current price of US$0.0894/share, i am a buyer.
Another quarter of over promise and under deliver it seems.
Seems Alex is being patient on getting the right type of financing for current shareholders and wont rush into one that would wipe us out.
Seems the Spinout of TCTS isnt going as expected due to the long overdue announcement. Not as easy at it seems i guess.
In terms of tower count, it could be safe to say that we have close to 60 towers assuming the 5 towers/month build out rate.
Based on that number and assuming no additional collocations and using the 15 times cash flow valuaiton method.
then 49 single towers would be valued at - $8.82M
and the 11 collocated towers would be valued at - $3.96M
total value would be around - $12.78M
Assuming a bank wants to be conservative and say value the towers for half that value, then we should be able to borrow $6.39M if we commit the 60 towers.
with $6.39M and building towers for $75K/tower, then that would be 85 additional towers.
i am not sure what the interest rate would be, but i am being conservative, say the bank lends that at 10% for 10 years, then that would be a monthly payment of $85K, adding 85 towers to the 60 towers and assuming no collocation apart from the 11 done already, then the monthly revenue would be 156K/month from 145 towers.
So, lets say we get that loan, we committed the 60 towers for that, that gives us 85 more towers for a total of 145 leading to enough funds to cover the first loan. now we have 85 towers to leverage, with 85 towers we can possibly go back to the same bank and rinse repeat.
and this doesnt include the additional benefit of collocation.
i figure a bank would be willing to lend at 10% interest and sit on assets that is worth twice the value its lending out with that value possibly increasing should they get collocated.
maybe my approach is way too simple and i am missing out on many things.
but its clear leveraging TO isnt as simple as Alex thought. i am doubting we will be at 100 towers by end of 2018. lucky if we make 80. Seems this will take a tad longer in terms of growing based on the missed targets of Q2.
Read more at http://www.stockhouse.com/companies/bullboard?symbol=c.to&postid=28251195#JQdmZYW4appzB6F5.99
Lets see if Alex once again over promises and under delivers, or maybe Under promises and over delivers.
Last week to announce a financing if he is to stick with his Q2 financing announcement.
The TCTS spinoff is already overdue.
Lets see if the tower count rate of 5 towers/month has increased or decreased come next news release.
yes, i also emailed them about that crap. Nick said he would resign if that was to occur again.
Q1 2018 Results are out
March 31 2018 Lease income is $551,858 when compared to March 31 2017 Lease income of $22,849. Looking forward to March 31 2019.
Losses still growing as expected. losses mainly from stock based compensation and alot of one time expenses.
Hope they curb their expenses significantly.
Really looking forward to their next news release. Hope it has some info on number of towers generating revenue and also the collocation growth.
Curious to know if any of the collocated towers have more than two tennants.
Hoping we are also close to getting some form of decent debt financing. Only debt we are able to access if from Alex's father at 24%/annum along with a company associated with one of the directors also at 24%/annum, however, these are unsecured debts.
We need access to larger debt at a more reasonable rate. Hope we can achieve this very soon.
Curious to also know where we are with the spinout of TCTS which in a previous news release said a definitive agreement is expected to be completed on or before June 1st 2018.
So, i suspect that they are holding back on the monthly 5 tower construction/month news releases for a news release with serious substance. (I hope)
Doubled my holdings this week
Doubled my position this week as the math was too tempting. My resoning is below.
And that was just based on figuring out its potential BV on 75 towers at most by end of June.
My quick math is based on the Investor presentation.
they value two ways
3 times the cost of constructing a tower - 3 * 70000 = $210,000/tower
or 15 times cash flow of tower (collocation makes the tower more valuable)
last news release has them at 40 towers of which 11 are collocated. so, the value is
29 single client towers * 210,000 - 5.22M
11 double client towers * 15 * 2 * 12000 = 3.96M
TO as of last news release is worth at least 9.18M, divide that by 92M diluted shares gives a value of US$0.09/share.
This news release was back in March 2018, in it it also said 15 towers were under construction, it could be safe to say that they should have 55 towers completed by now, i will assume no additional collocation
44 single client towers - 7.92M
11 double client towers - 3.96M
my value assumption based on 55 towers is 11.88M/92M shares = US$0.13/share.
Moving forward, they got 2.1M from the warrant exercise, this could build out 2.1M/75000 = 28 towers. However, lets say they just build 20 additional towers with the funds, that would bring us to 75 towers in the near future, assuming that we still have 11 collocations, then
64 single client towers - 11.52M
11 double client towers - 3.96M
Assumption based on 75 towers is 15.48M/92M sahres = US$0.17/share.
This doesnt include the aquisition of the mexico company released today, i have no idea how many towers it has. i didnt include the shares they used to aquire this company today either.
This is why i doubled my holdings this week, the company BV is growing rapidly, and they should be able to build out 75 towers on equity and personal debt which i believe the cash flow from these 75 towers can pay back comfortably.
This valuation assumes only 11 collocations so far and also assumes only two clients are on the collocated towers.
This does not value the TCTS company they plan to spin out either.
Read more at http://www.stockhouse.com/companies/bullboard?symbol=c.to&postid=28054749#ka0lMOlFQ10DLcRv.99
$TOWTF
Nice news release today, moving in the right direction.
https://finance.yahoo.com/news/tower-one-wireless-completes-acquisition-183050643.html
Cell Tower REITs: Analyzing The Impact Of Potential Merger
https://seekingalpha.com/article/4170038-cell-tower-reits-analyzing-impact-potential-merger
Capital raise at $1.80 and the stock does not even budge from plus $2.00. then we uplist to the NASDAQ, patience is paying off for this multibagger.
Just read it, looks decent. as expected, revenue is growing. still losing money, but we are growing. with this infusion of cash, this should help build out more towers and bring in more cash.
In addition, looking forward to more collocations. thats gravy
$TOWTF
Nibbled on some more shares today. Company has 40 towers so far. 15 under construction and sitting on 2.16M bucks for more buildouts. So, using some recent tower transaction data, 1 tower is worth around 181K/tower. Should TO have built out those 15 additional towers soon, they will have 55 towers. It costs them say 80K to build a tower, so they have cash to build 2.15M/80K = 27 more towers for a total of 82 towers by say June 2018. So, it could be safe to say that the value of TO would be around 82*181K = 14.842M. using their fully diluted shares of 92M that would equate to $0.16/share in value. In addition, those 82 towers will be safely spitting out $1.16M/year in cash and that's assuming they dont have anymore collocations.
$TOWTF
Back of the envelope
Current - 40 towers
Being built - 15 towers
cash on hand 2.16M
cost to build towers - 80k/tower
say 1.8M in cash to build more towers - 1.8M/80K = 22.5 towers additional
on equity alone we should be able to have 77 towers cash flowing which is 77K/month excluding collocation.
if we do leverage this in this quarter, then i do believe we could be up to $1.00/share by end of the year. if even half true, this could also trigger the warrants at $0.40 which brings in an additional $5.8M.
things should start to look up in the near future. i think i need to add more shares at these levels.
BusinessWire, GlobeNewswire and PR Newswire News
Tower One Wireless Corp $TOWTF:OTC Pink - Current Information
Tower One Receives Warrant Exercise Proceeds of $2,166,300.00
GlobeNewswire
8:30 AM ET
Tower One Wireless Corp (CSE:TO) (OTCQB:TOWTF) (Frankfurt:1P3N) ("Tower One" or the "Company") announces it has received gross proceeds of $2,166,300.00 CDN through the warrant incentive program (the "Program") previously announced on April 4 2018.
A total of 8,665,201 warrants were exercised to acquire 8,665,201 common shares of the Company at a price of C$0.25 per warrant. The warrant incentive program ended as of April 6 2018 and a total of 14,620,745 warrants at a price of C$0.40 are eligible and listed for trading on the CSE at this time.
Alejandro Ochoa, CEO of Tower One, states: " The success of our warrant exercise program demonstrates the strong support we have from our current shareholders. This additional capital will allow Tower One to continue to execute its business plan to build out its portfolio of over 350 tower sites with 40 towers completed in Colombia/Argentina and 15 additional towers under construction in Argentina. Our next critical step as a Growing Tower Company is to secure a permanent credit facility for this stage of our development. We intend to announce such facility this Quarter. All current towers have been financed on a combination of equity and director loans."
About Tower One Wireless Corp.
Tower One builds, owns, and leases a portfolio of wireless infrastructure assets to wireless carriers on long term contracts. Tower One is one of a few publicly traded small cap companies in the tower and wireless infrastructure industry. Tower One is operated by a team of telecom and finance professionals with a long history in the telecom and wireless infrastructure business. Tower One Wireless is currently focused on 4G & 5G LTE infrastructure expansion in Latin America.
Contact Information
USA (917) 546-3016
E-mail: info@toweronewireless.com
Website: www.toweronewireless.com
The CSE has not reviewed, and does not accept responsibility for the adequacy or accuracy of the contents of this news release.
This news release does not constitute an offer to sell or a solicitation of an offer to bu y any of the securities described herein in the United States. The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities law and may not be offered or sold in the "United States", as such term is defined in Regulation S promulgated under the U.S. Securities Act, unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration requirements is available.
FORWARD LOOKING STATEMENTS
Certain statements in this release are forward-looking statemen ts, which include regulatory approvals and other matters. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such information can generally be identified by the use of forwarding looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward looking statements will not occur. Forward-looking statement are necessarily based upon a numbe r of factors that, if untrue, could cause the actual results, performances or achievements of the Company to be materially different from future results, performances or achievements express or implied by such statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, present and future business strategies, the environment in which the Company will operate in the future, and other factors, many of which are beyond the control of the Company. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks. There can be no assurance that the proposed Transaction will be completed or, if completed, will be successful.
Forward-looking statements are subject to a variety of risks and uncertainties, which could cause actual events, level of activity, performance or results to differ materially from those reflected in the forward-looking statements, including, without limitation: (i) that environmental laws and regulations may become more onerous; (ii) that the Company may not be able to raise additional funds when necessary; (iii) risks related to accidents, equipment breakdowns, labour disputes or other unanticipated difficulties with or interruptions with the business; (v) competition; (iv) the uncertainty of profitability based upon the Company's history of losses; (xiii) risks related to environmental regulation and liability; (vi) risks associated with failure to maintain community acceptance, agreements and permissions (generally referred to as "social licence"); (vii) risks relating to obtaining and maintaining all necessary govern ment permits, approvals and authorizations relating to the continued operation and development of the Company's projects; (viii) risks related to the outcome of legal actions; (ix) political and regulatory risks; (x) risks related to current global financial conditions; and (xi) other risks and uncertainties related to the Company's prospects, assets and business strategy. Important factors that could cause actual results to differ materially from the Company's expectations include, litigation, global economic climate, loss of key employees and consultants, additional funding requirements, changes in laws, competition, and failure of counterparties to perform their contractual obligations. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking sta tements due to the inherent uncertainty of such statements.
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$OPRX Was only a matter of time before Mr. Market noticed this company
Towers in El Salvador going for 181K/tower
https://seekingalpha.com/news/3328913-millicom-selling-towers-sbac-145m-deal
would value our 40 towers at $7.25M