There's a Chungus among us.
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I see Ponder and Hayter got some crisp new shares https://ih.advfn.com/stock-market/USOTC/spectrum-global-solutions-inc-SGSI/stock-news/79274638/statement-of-changes-in-beneficial-ownership-4
Actual Wavetech sales/customer info from 2014: https://translate.google.com/translate?hl=en&sl=de&u=http://mailing.wm-ag.at/de/content/1000/wmagnews.htm%3Fzeige%3D421&prev=search
From my previous posts, looks like they have developed more partnerships.
Also, one of the Norwegian articles was from April. I'm pulling google translate posts because I got a 7 day free reading trial.
Looks like they've been working with BV Advisory for a while now: "According to a so-called EB report from Keith Barksdale in Advisory Partners in the United States, the company is now valued at $ 200 million - or NOK 1.6 billion."
Don't pay too much attention to the valuation...
Also this: "Meling says that it is within Telekom that they should first put in the shock - even though the technology itself can be used in the automotive industry, data storage and lithium. According to the 51-year-old, they are in final negotiations with three major companies in North Africa and the Middle East.
- If we manage to land one of these agreements, then the company will technically be valued at around $ 500 million (NOK 4 billion), says Meling.
- Why should a large Telecom company choose to invest in you?
- Because they will be able to halve their costs on the telecom towers, which technically make up all that essentials"
Also from the Norwegian article: https://www.pressreader.com/search?query=wavetech&languages=en&groupBy=Language&hideSimilar=0&hideSnippets=0&type=1&state=1
"Wavetech has about 30 employees. In 2017, revenue was just under NOK 40 million, while the sales budget for 2018 was around NOK 100 million."
Re Non-disclosure agreement, this was a quote (translated) from one of the Norwegian articles:
"Aftenbladet has been in contact with Meling, but he is a difficult wordblock about the process that is now going on.
- It is not that I do not want to say anything, but I simply cannot pronounce at the present time, says Meling."
Even if they apply next month, the reverse merger will delay that over a year because of the foreign company waiting rule. Unless they find some exception or loophole.
Ah yes, a 0 volume open. Very big board stuff.
Good article. Here are a few things I pulled out.
Wavetech is not interested in amassing debt: "Debt financing and thus dependence on banks were so far deliberately avoided. In the year 2005 the establishment of a German branch with seat took place in Rheinbach, (HRB Bonn 14926), where the operative business is concentrated."
I like how their VP of marketing has worked for Ford and other auto makers.
They're aware that there are other desulfators out there and they understand the need to find a new niche: "Devices that claim to extend the life of lead-acid batteries have been around for a long time represented in the market for many years; they are aimed essentially at the market segment of the Car batteries. The main manufacturers are Novitec, Waeco, Aubu, Megapuls, PulseTech and IVT Hirschau. The effectiveness of these devices, which work with simple voltage pulses, is controversial. Our own comparison tests have shown that under defined conditions an extension of the Life can be achieved by a maximum of 25%, but this is not reproducible."
When they finalize the merger. The cutoff date is Feb 28th so sometime in the next two weeks.
We can also expect ADEX to show a 20% increase in revenue for next quarter. From the last 10k
"On February 27, 2018, a subsidiary of the Company, ADEX, entered into a Purchase and Sale Agreement with Prestige Capital Corporation (“Prestige”) pursuant to which ADEX agreed to sell and assign and Prestige agreed to buy and accept, certain accounts receivable owing to ADEX. Under the terms of the Purchase and Sale Agreement, upon the receipt and acceptance of each assignment of accounts, Prestige will pay ADEX eighty percent (80%) of the face value of the assigned Accounts, up to a maximum total borrowings of $5,000,000 outstanding at any point in time. ADEX additionally granted Prestige a continuing security interest in and lien upon all accounts receivable, inventory, fixed assets, general intangibles and other assets. Prestige shall have the right to chargeback to the Company any account that is not paid within 100 days of the invoice date for any reason other than insolvency. Prestige shall have no recourse against the Company if payments are not received solely due to the insolvency of an account debtor within 100 days of the invoice date. At September 30, 2018, the Company owed $2,934,294 pursuant to this agreement. Subsequent to September 30, 2018, Prestige was repaid all amounts owing and the Purchase and Sale Agreement was terminated."
I'm expecting that a finalized merger announcement will come with more current financials once non-disclosures are lifted. I'd love to see some partners listed in regard to the auto battery division. I'd also love if Ponder and Hayter used their amassed shares to help complete the Wavetech merger. it's doubtful given their past actions but it would redeem them in my eyes. That would mitigate a lot of dilution involved in giving Wavetech majority ownership. They also didn't mention the percentage of ownership... It better not be something stupid like 97/3.
I'm with you that much of Wavetech's history has been R&D and not product launching. If they can get their telecom, auto and power divisions up and running soon, then $$$. Just one licensing contract with a major auto manufacturer could lead to millions in revenue with high margins.
Brynjar's deep pockets could be the catalyst for getting SGSI out of debt and up to a reasonable market cap. Forget Wave's products, just $10mil could salvage this ship. A lot of people have $10mil lying around. Lower OPEX with drones should be hitting the Q-Reports right about now. We now have a reasonable $5million revolving credit line that won't dilute everyone. Plus there's BV Advisory as a 3rd party consultant (on the board) to say, "Maybe don't take on all the bad debt."
I don't mean to be a pumper. But we are hanging out on OTC boards and risk is a given. Looking at the current chart makes the downside obvious so of course I don't believe any of this is bound to happen. Still, even fully diluted out of convertible debt, we could easily be looking at a 3 or 4 bagger. Pick up shares at the conversion floor and it's looking even better.
ADEX just posted 14 new jobs TODAY in multiple states. Growth metrics right there. Not to mention many of the recent postings are for 3 positions. If all of these positions are for completing contracts, then the increase in billable hours gained since Jan 1 might get SGSI to profit.
And 3,500,000 Krone's = $403,938
Thanks for sharing, drugman!
Do you think this include the financials for the German Wavetech De subsidiary? I know in the SGSI financials it'll show SGSI at a loss of $x while the subsidiaries have profits of $x. If the German subsidiary is making all the money while the norwegian place is simply the holding company, then that explains why it has no assets and 3.5 million Krone in losses. This financial statement seems pretty incomplete. But they could also be accurate.
Also, the WAVE 2017 losses are largely due to impairment. For whatever that's worth.
Here's to realigning management with the Wavetech and BV Advisory board.
Your point is well taken. I'm wondering how much cash Wavetech will bring in for paying down debts. If they ever want to uplist to Nasdaq they can't let this crater. Another RS would bring up SP but completely decimate the OS requirement.
Have a link to the $15 million "investment/loss" info? Is it from here, 2015 German financials? https://www.bundesanzeiger.de/ebanzwww/wexsservlet Because they include equity investments in total liabilities, which seems like more stockholder deficit than debt.
But good points for anyone new considering SGSI. People need to see the risks involved.
I'm still leaning toward the biotech model though - lots of R&D with low sales before launching a fully commercialized product. They won't be selling Beat Products in US auto stores or anything. They'll incorporate the tech into other hardware/software applications for telecom companies and other energy grid extensions. I think it's a moot point asking to see Beat sales or ask to buy them online. It seems like Wavetech has moved away from individual desulfators (though it seems clear that their tech does work).
Wavetech has done a good deal of testing over the past 10 years. Here's an article that indicates early testing of their current telecom service offerings. http://www.wavetech.de/wp-content/uploads/2013/05/PPS-Evaluation-case-study-draft.pdf Yes, it's from 2013. But in the meantime, they've obviously developed a software infrastructure that allows for remote analytics and maintenance. The article just shows how they used their battery tech to reduce tower energy use/expenditure.
Also, Wavetech has a small team. They've spent 2018 searching for new market opportunities and not focusing on building Beat Sales. That's a good thing IMO. That means from 2013 to 2017 they were likely developing their software. That's not a ridiculous timeframe to develop an encompassing power node, mobile app, analytics platform, and battery life-extender system. Now they just need to distribute it (hence merger with SGSI, which has nation-wide telecom contracts).
The small team also supports my theory that Wavetech is still an R&D company trying to bring a new product to market. Their Power Control Grid is patent-pending, which isn't a bad sign. It's not like they're hiring 100s of people. This site says 33 German employees https://www.zoominfo.com/c/wavetech-gmbh/444316318 (also says 6million revenues but I don't know if I trust it being up to date). Plus there's about 6 at the US office.
There's a lot of risk associated with this business model. As you say, we don't have definite sales numbers. But I wanted to put this out there so people can see multiple sides of the issue.
Thanks for that number! So, roughly, SP has averaged around .45 since September. That's only $500,000 converted out of approx. $4 million in convertibles. If all $3.5 million left converts out around .20 then OS will be around 25million. Obviously a spike or drop would change this equation. Obviously massive dilution will keep tanking the SP and increase that number. I'm estimating here based on a finalized merger spike and a slightly positive 10k.
As you've said before, there are conversion floor considerations. I'm not sure that all of the debt can convert unless there's a default. That helps too. I do know ICLD sold some of the convertible debt to 3rd parties but perhaps some incestuous deal will negotiate even more with the Feb 27 due date coming up.
Also, with the $5million revolving credit, I hope that eases the need for future convertible debt financing and all that's left is to convert/pay down the existing convertible debt.
But with my last post about TNS with EBITDA of $1million and overall SGSI 4% organic growth in 2019, that would solidly put SGSI at positive operating revenue for 2019. Even to trade 25 million shares at 1x sales, about $40million (factoring in TNS and not including Wavetech), that would put the fully diluted SP at $1.50.
Not saying this outcome is inevitable but there's at least a pathway to SP increase. This is a pathway for new investors, sorry. Not those who held through the RS. But at least it could work out to be something positive. If it's a scam then it's a scam, idk.
Cloud Wars III: Revenge of the Dump
Real post here, not spam pumping. Does anyone who's been here since September have a rough estimate of daily conversion volume? I saw past posts pointing out T-Trades and such. Just trying to estimate how much debt has been converted since the last Q-Report.
It's worth noting that loss on operations for the last 3 months in September was about $340,000. That X4 is about $1.3 mil annual operating loss going forward. If it's true that TNS is bringing in $1 mil EBITDA then a (relatively) small uptick in organic growth of 2% or 3% will put SGSI at a positive net operating gain.
It's make or break time. Let's hope the employee stock "2018 Plan" distribution incentivizes them to get over that earnings hump. Then they make a deal with ICLD to clear a lot of the convertible debt. Then get a cash infusion from Wavetech to pay down more debt before launching a high-margin, recurring revenue stream from energy asset management.
It's possible. Probable? Who knows.
Hey Sarwood! So SGSI did buy TNS from ICLD. SGSI paid ICLD $1.1 mil + 600,000 in convertible notes (at .10 I believe, which have now more than doubled).
Anyway, to pay the $1.1 mil to ICLD, SGSI borrowed from Libertas. As part of the merger deal, Wavetech made an equity investment of $1.1 mil, which SGSI used to pay down the Libertas loan. Although I don't know the details of the "Equity Investment," I think it just means they bought that many SGSI shares. I could be wrong here. Wavetech would have to buy shares anyway to gain a majority interest in SGSI so it makes sense.
I was just pointing this out to show that it really does look like the ICLD/Wavetech deal fell through.
Link to Wavetech + SGSI debt agreement: https://seekingalpha.com/news/3431700-spectrum-global-solutions-reduces-debt-strengthens-balance-sheet
Wavetech made an equity investment with SGSI to pay down the TNS (bought from ICLD) debt. Looks pretty official. The news broke this morning.
Ag Boy, your posts creep me out. But I would have a beer with you anyway. Cheers to reduced debt!
Can't get .33 filled.
What are you talking about? I just did a search through the 8k for "split" and "reverse" and nothing showed up. As long as the definitive merger goes through then SP will be high enough to list after the 1 year probation.
ADEX subsidiary is exploding. They added almost 80 new job openings in the last week. Hope that's a good sign and not an indication of bloating
https://adextelecom.com/component/jbjobs/guest/joblist.html
I'll invest.
"We provide high-speed data Saas analysis of NFV functioning grid-based system portfolios to provide peace of mind in bit-rate regulated environments of an ever expanding marketplace of value and digital potential analysis. Emphasis on 'anal'ysis." See, I can help pump the stock, lol.
I don't have that info. There are a few random websites that have Beat products on them but I don't know how to buy them retail. Wavetech's website suggests their main products are integrated with other bateries, which suggests a B2B revenue pipeline, not a retail pipeline. A private company wouldn't need to advertise their contracts and partners as much as a public company would.
Idk, we'll have to see what the next quarterly reports bring (or the merger finalization). You could be right that Wavetech doesn't have a strong sale record but at these prices I'm willing to wait around to see if they come through. JMO.
We've been pitching similar ideas on the ICLD board. The third party (Wavetech) makes things interesting. I'd be happy to see Ponder and Sands out the door.
How could ICLD afford any of their ex-subsidiaries?
Someone on the ICLD board said they called IR and they told them that the deal fell apart due to Wavetech's decision. IR said there wouldn't be an official PR.
So no official link.
Me too. Came over from the ICLD LOI news because I liked what Wavetech was doing.
Honestly, with a valuation of 130 million, cleaned up debt and actual profits in the next quarterly report, WAVE SP should be between $15 and $25 (spike up to low 20s falling back to high teens). Simple math with the OS and Enterprise Value suggests that. This deal better finalize...
And that's just the beginning. I'd love to see SGSI move away from these one-time installation projects that look big and great in PRs but really don't deliver. The Wavetech model will bring in more passive revenue from long-term network analytics contracts. They'll get higher margins and more passive income. So as 5G contracts come in, SGSI can install the tech while developing these extended network contracts, which could provide recurring revenue for years without a lot of expense.
Germans (Norwegians?) seem to have level heads. Hopefully there's a little Merkel in their business approach :)
I don't disagree, haha. It's been a dumpster fire. But the huge risk/reward ratio makes it interesting to follow. I'm sorry for those of you who got in when it was still on the NASDAQ.
I'm not a fan of the low float. But management owns about a third of the total OS. If it wasn't for their "checkered" past with the ICLD dumpster fire, I'd take that as a great sign. Not a bad sign though. It seems like they believe in their own plan.
Wavetech will probably do a capital raise this year and that'll loosen things up for a SP increase. Or at least do a stock split.
True. I was more wondering if they'll diversify outside telecom or at least keep current non-telecom contracts on the table. If they're making money with other battery producers, might as well keep it that way.
I'm glad this telecom tech has been in the works for a while now. From the article: "WaveTech has a major field test underway in India at a telecom site with a 48V battery pack used for back-up power at a transmitter tower. The test involves a battery manufacturer specialising in the telecom field and a service provider in the segment. The tests have been running for nine months so far with, according to Valand, “very encouraging” results."
RE: TNS Acquisition
I know an issue with SGSI has been Revenue vs. Operating Costs. Keith definitely blew past the balance sheet/Cash flow in the last webinar because... well... it doesn't look very good.
But in 2018, ICLD actually cut down salaries and staff quite a bit. Hopefully this is good news for the cash hemorrhaging and the TNS addition will contribute actual net profit.