Sunday, September 03, 2017 2:48:23 PM
Let us look at what’s been happening as of lately…
On August 1st 2017, CloudCommerce announces the closing of a $9M stock transaction to acquire certain assets (aka Parscale Creative) spun out of a digital marketing firm, Giles-Parscale Inc. http://cloudcommerce.com/cloudcommerce-and-parscale-creative-announce-merger-agreement/
The following day, CloudCommerce releases an SEC filing detailing out the terms of the transaction with Parscale Creative’s principal owner, Brad Parscale. As part of the deal, Brad (i) receives 90,000 shares Series D Convertible Preferred Stock with stated value of $100 per share; (ii) agrees to a lock-up period preventing him from selling his CLWD shares for 2 years after close of transaction; and (iii) agrees to a non-compete preventing him from leaving and competing against CLWD for 3 years.
https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12204500
Given these agreed upon growth incentives and exit restrictions, it appears Brad is eager to make an impact on CLWD’s financial performance.. But how well can we expect him to perform?
Brad is best known for his role as Digital Director of Donald Trump since 2016…
https://www.wired.com/2016/08/man-behind-trumps-bid-finally-take-digital-seriously/
Brad began working for the Trump Organization in 2011, providing website development and digital media strategy services for Trump International Realty, and subsequently working on projects for Trump Winery and the Eric Trump Foundation…
http://srfkllp.com/sichenzia-ross-ference-kesner-llp-represents-cloudcommerce-inc-acquisition-parscale-creative-inc/
In large part due to services for the Trump’s Presidential Campaign, Brad generated over $90 million in revenues in 2016 (representing 4782% topline growth since 2014) for Giles-Parscale Inc https://www.bizjournals.com/sanantonio/news/2017/06/29/fast-track-san-antonios-fastest-growing-private.html#g51
If recent history is any indication of future performance, Parscale and his team may have what it takes to generate millions (if not tens of millions) of new revenues for CLWD...
Prior to the acquisition of Parscale Creative, CLWD reported to the SEC that it was generating roughly $2M revenues for FY 2016 and $3.4M in the first three quarters of 2017
http://www.otcmarkets.com/stock/CLWD/financials#
For speculation… let’s assume CLWD closed its FY 2017 with $4M revenues and Parscale Creative merged in an additional $4-6M, thus yielding a run rate of $8-10M total revenues
As of Sep 1st 2017, the market is valuing CLWD at $5M – less than 1x the run rate projection.
http://www.otcmarkets.com/stock/CLWD/profile
In sum… the market might be materially underpricing the value of recently acquired assets
P.S. Good luck to those entering or accumulating more… the CLWD float is as tight as a drum!
Recent AIAD News
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 09/12/2024 12:00:39 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/14/2024 05:50:26 PM
- Form DEF 14C - Other definitive information statements • Edgar (US Regulatory) • 05/17/2024 09:29:48 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 05/15/2024 09:15:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/01/2024 10:45:31 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/01/2024 09:35:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 10:50:41 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 10:50:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 10:49:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/10/2024 10:48:43 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/14/2023 06:28:38 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 10/20/2023 08:29:14 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM