There's a Chungus among us.
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I wonder how they'll use this tech in the new business model. They've been pursuing a few car battery manufacturers in 2017 and 2018.
Edit, here's an encouraging quote from that article. Apparently Telecom use has been in the works for a while: "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."
FYI, ICLD OS is about 900,000,000. A lot of dilution since last quarter. Your point is well taken though.
SDN/NFV is where ICLD could get some major contracts from SGSI. If ICLD helped implement all of their NFV systems... then we might see an actual profit from ICLD.
I think TNS accounted for most of ICLD's operating expenses, too. The Netlayer team could be really lean unit since most of the R&D expenses are done and they don't need to buy expensive cables or hire a huge team of technicians. With that 2 million Netlayer contract announced a while ago plus new SGSI contracts, then that could pave a way for profit. And whatever happened to that CA Technology partnership (I really don't know)?
Or Munro hasn't been doing anything. It's quite possible. And no new Netlayer contracts have been added in 2018. Then this really was a last ditch effort and we can say "bye, ICLD."
There's still the bad debt, too. ICLD still needs those SGSI convertibles to rocket to have a chance of getting rid of the debt anytime soon. Or if SGSI really wants to use them for contracts (again, we're all speculating here), they should provide financing/restructuring to keep ICLD from going under.
Wavetech has been working in the US but hasn't been a US company with access to markets. I don't think they've filed with Edgar because they were German before. Even the Wavetech.com site was used while they were based in Germany.
I'm onboard with that analysis. The merger will probably freeze up Wavetech ownership shares for a while anyway.
Given Wavetech's own analysis, they could even be doing much more than 30 million in revenue. Plus, the new incoming management might not be in love with convertible debt, which will give us some breathing room. Restructured debt + cash from old Wavetech + reduced opex from drone tech and network monitoring... big cash money potential.
https://abc.angelequitygroup.com/company/info/wavetech-gmbh
Reverse Mergers usually go through a subsidiary. I think this is just standard practice.
Honestly, some open market dilution would probably help the float. Plus a $130million initial Enterprise Value can absorb some dilution and still maintain a higher share price at this level.
Best of both worlds. I was surprised that Netlayer didn't go with Wavetech since their new business plan is basically Netlayer for electrical power grids/sources. A $10 million Saas contract from WAVE + the convertible notes for SGSI would get ICLD into the black.
There's a long history of management and subsidiaries with the two companies. Hence the allegations about insider benefits and dumping the losses on shareholders.
Wavetech's new investor presentation suggests either SGSI or ICLD would be a good fit. There's a lot of energy network monitoring going on in Wavetech's new business model. SGSI only has 12 million in assets so it's actually pretty close to what ICLD was valued at a few months ago (9 million). Of course, this isn't taking liabilities into account.
I guess they'd keep the battery product line, too? And SGSI would keep doing their installation business? Or they sell it all off and pay down the debt? News and decisions move too slowly!
Spectrum is in Florida and ICLD is in New Jersey.
Nope, ICLD is going to ride the SGSI pump and survive. All this is from the SGSI Quarterly Report. It lives!
"The Company owed InterCloud $500,000 of the acquisition price of ADEX (described in Note 3) which was retained by the Company in order to satisfy outstanding liabilities acquired by ADEX. During the nine month period ended September 30, 2018, the Company repaid $225,000 of this amount, leaving an ending balance of $275,000."
"The Company also issued InterCloud a convertible note with a principal amount of $793,894 to settle a contingent liability of $793,893 owed as a result of the acquisition of AWS. The note is due on August 16, 2019 and bears interest at 1% per annum. The note is convertible into common shares of the Company at a conversion price equal to the 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion."
"...issuance to InterCloud of a one-year convertible promissory note in the aggregate principal amount of $2,000,000 (the “ADEX Note”). Due Feb 27th"
Ok, so this isn't going to save ICLD. But I thought it was funny!
That's true. Those notes have already doubled. With a 130,000,000 valuation, SGSI (WAVE) should be trading above $1 if not $2. That would give ICLD about $6,000,000.
Not happy with the definitive agreement changes but that $6,000,000 (assuming a $1.50 price target) + the million from the sale could pay down a lot of debt. I wish they'd give an update on how netlayer.io is doing and whether there are any new contracts.
Hey Hou, I don't think the price will rise until the Super 8k. They're likely working with a block house to get the shares at a specific price or better.
Over the past month, ICLD has traded share volume well over the Authorized Share count. Even on slow days, volume is double what it was before Merger News. Someone's still churning the pot and it makes sense if they're trying to get 95% of shares into the hands of Wavetech shareholders. It'll take a long time to fill those block trades without too much price volatility. Wonder if they agreed on acquisition at .0007 or .0008. The earlier 8k "spike," which was pretty meaningless in the large scope of things, might have slowed down the acquisition process.
If the Merger goes through and Wavetech owners have shares restricted, then ICLD could explode on low float/volume.
It's not 300mil but we're close to 30mil by 12pm.
Haha, the trade list today is pretty funny.
We've been bubbling all week. Big volume/trades today. Government shutdown better not have derailed this reverse merger.
New SEC news is out. https://ir.intercloudsys.com/all-sec-filings/content/0001683168-19-000222/forward_inter-sc13ga4.htm
PS, it's just a 13G.
I've been wondering if the government shutdown has slowed down the Reverse Merger. I read a few articles about the SEC running on skeleton crew. That would have slowed any movement regarding the Reverse Split filing.
I hope so! Or they have a lazy web developer. I have to say it's not the best designed site on the Net haha.
Looks like it. Did you use a direct link? I couldn't get to that page from the home page.
Wavetech has been taken off the Pre-IPO list for Angel Equity Group, a group that allows crowdfunding for private enterprises. Seems to indicate merger has progressed if they're no longer considered a private corporation. Or something's gone terribly wrong. Or AEG is updating their website and took off some important info (there is no Pre-IPO list anymore). Anyway, don't put too much stock into this (pun intended), it's just an update.
PS You can still find the Wavetech info on the site but the company is no longer listed in their Pre-IPO section. https://abc.angelequitygroup.com/company
In 2007, one share of ICLD went for over $40,000,000 relative to today's price & shares. Let's see if we can hit that level by Friday, ok?
Careful though that it isn't MMs just trying to profit off a gap.
There's no clear reason for this to be going up despite a few positive indicators. I'll hold for now. Got my eyes set on bigger gains!
There's your 14 :)
That would be ideal. If those ex-daytrader shares are being held to issue to Wavetech, then that means less dilution for existing shareholders. Not sure about the technical legalities of all of this but I'm hoping to have some fun in the next few weeks.
FYI, the Super 8k has to be filed at most four days after closing. So we may see a merger announcement after everything's said and done (like we did with the most recent 8k). Plus, with shell company scouting and due diligence happening before the Letter of Intent, they've been in this process at least two months. We should be close to closing. And a merger announcement may come hand in hand with the Reverse Split news since they only said they'd file for a Reverse Split before closing, not announce it.
JMO
Not yet :) Pumps being primed.
I wonder if some of this is stock accumulation for the Reverse Merger. If we cut out much of the day trading with the spike last week, then ICLD/Wavetech would have no choice but to bring the price up. Hold tight! This doesn't seem to be a pump climb. Once we get real news then this should rocket.
Just time your sells right ;)
I'd be curious to see what the float is.
I think a good PR spike could get it up to .01 but then it would gap back down. Not sure the actual value of the shares/company would keep it up in penny land but we just don't know what the market will think of Wavetech. I'm speaking relatively because if a reverse split happens it'll obviously hit a penny. Watch closely over the next week or so and you might get out with break even? I'd be quite happy if it hits .008
More like these guys. Scared off all the weak hands ;)
Hou, interesting price movement today given what we've been saying and researching. Lots of indicator trades, too. All will be revealed soon... And I agree what you said about what to post on the board.
There's definitely some kind of movement toward merger.
Saw your message FYI. Can't respond directly with my current subscription.
That would be a big positive! Next week will be key.
Did the IR agent say PR is forthcoming? Or is that you saying it? Hopefully it came from IR.
I'm sure non-disclosure will make any conversation with them pretty vague.
And in regards to the whole possible valuation for Wavetech, here's a random company I found called Sharp Springs inc in IT/Cloud marketing. I have no idea who they are. But they have a market cap of $123 million with an underlying asset base of 25 million. Doesn't look like a great company but it's still worth what I would like Wavetech to be, minimum.
Or look at this random Brick Brewing Company. Market Cap = 123.5M and assets of $60 million. A Canadian brewery I've never heard of.
Could Wavetech come close to one of these valuations? Perhaps.
Always good to hear someone's been contacting IR. Keep it up. I can see how they'd be busy, haha. But sounds like they're taking this seriously.
Thoughts on debt going forward. These are just speculation. Not retyping all this from last night so it's copied below (see point 4) :)
Given the dilution and the recent asset sale, ICLD might be close to clearing the current derivative financial liabilities off its balance sheets. Those were around $2 million in September. About the long-term derivatives ($17 million), I'm not sure how they could clear those without either Wavetech or BV Advisory stepping in. But again, I don't know the details of the accounting, whether there's been renegotiation, or whether all of those derivatives are convertible debt (not sure what else they'd be though).
So because I find it interesting to put myself in the companies' shoes... here are some theories
1. ICLD's just milking its A/S because it can. There's been high volume this week, which means some buyers for newly issued stock. ICLD's just grabbing free cash. Wavetech might demand this especially if they'll be the ones paying that $17 million after the merger*
2. ICLD's issuing new shares for cash because the acquisition will require ICLD to pay premium prices to note holders. Thing is, it's a reverse merger so it'll technically be ICLD just renamed. I'm not sure whether debt transfers if the debtor entity stays intact.
3. Convertible debt is simply still converting. Debt holders see value here that surpasses whatever value belongs to holding the debt. Convertible notes are affected by reverse splits so I don't really see what it matters if it happens now or later. Most of the notes were negotiated around November of 2017, which means their conversions are worth nearly nothing. So not sure how likely this scenario is especially given #5 below - too much unnecessary risk when they're still entitled to the principal. Also, in order to come close to providing ICLD shareholders with 5% of the company, then debt can't convert immediately after the R/S and pre-merger. I could be wrong but it looks like there's simply too much debt to both maintain share price and not hit A/S again with $17 million diluted.
4. ICLD needs to max out the A/S to make it easier to get Wavetech their 95% ownership. I don't know what the terms of the merger are and how ownership will be transferred. This might also be Munro converting his preferred shares for a "fundamental transaction." See quote from old press release: "Absent a fundamental transaction, this preferred equity will not dilute our shareholders but will have an immediate positive impact on our balance sheet." Well, now it's diluting. If there's another way Wavetech can get 95% control of the company, then fill me in. This scenario also sets us up the best for big news and vindicating my 911 conspiracy, haha. Would ICLD have to issue a statement about Munro converting his preferred shares? idk.
5. ICLD expects debt to convert after the merger and once the share price climbs to pre 02/2018 RS levels. Again, if the long-term debts stays on the books because ICLD is technically the buyer, then the debt holders can still convert at a higher share price with Wavetech. If ICLD is confident Wavetech will have a high valuation with assets and revenue, then yeah, it makes sense that debt would convert when share prices hit $4 or so. See valuation thoughts below.* They never said in the press release that debt would convert immediately after the R/S. Also, if the long-term debt converts at $4 then $17million in conversions wouldn't skewer shareholders the same as it would now. (Yes, $4 is just a placeholder price. I know that debtors, to break even with past RS, would have to get around 100x the current SP. But with their discounts and even better SP, they still might want to wait). Converting then would add around 4.2 million shares to the OS. Not awful for Wavetech, especially since a traditional IPO would carry its own dilution, at least for the founders. All depends on valuation. $17mil into a $200mil company isn't catastrophic. But who knows how current shareholders will end up. Hopefully they at least break even
* It's possible that Wavetech can take on that kind of liability. Even if their net revenues in 2019 and 2020 are half as expected on the Angel Equity page, that's still enough to complete the merger, clear the long-term liabilities and then keep future profits. The benefits of having a US listing and ICLD's contacts/SDN research would outweigh the cost of salvaging ICLD's debt. I'm not impressed with Wavetech's lead battery BEAT products. Another poster already pointed out that there are similar products on the market. But if Wavetech can get their lithium division into the market (electric cars?) and get some big clients for their SDN energy monitoring service, then I think there's true upside. Honestly, it's not crazy to think they could be listed between $100 million and $200 million. For slaps and tickles, go into your online trading site and screen for other companies with a market cap in that range. You'll probably think, "Wow, those companies seem smaller than I'd imagined."