SPYR Inc (SPYR)

[RandyKCMO]

Implications and Thoughts about the Future of SPYR

In addition to the post (below)... the latest press release on July 10, 2018, with the LOI for the acquisition of a private video game company, is exactly what the company said they were going to do.

SPYR Commences Roll-Up Strategy With Signing of Letter of Intent to Acquire Highly Accretive Online Game

Sub-headline:
Acquisition allows SPYR to Achieve Profitability with Over $9 Million in Revenuee

https://ih.advfn.com/p.php?pid=nmona&article=77833612

In case you not digested the recent headline, I thought I'd share a few thoughts.

"SPYR Commences Roll-up Strategy"
This is pretty cool. In the last 10-K the company, when commenting on the burn rate of capital, indicated they thought they would be able to become profitable in the not too distant future. No doubt this is what they were hoping and expecting would happen.

"SPYR COMMENCES" their plan to become profitable. How will this strategy take shape? Their plan is becoming evident. They are "Commencing" their "Roll-up Strategy" through acquisitions.

The word "commences" basically means they are just beginning. If their strategy is begun by one acquisition, it is probably safe to say that it will be continued with more. I expect we will hear about additional acquisitions in the weeks and months to come.

And what is a "ROLL-UP STRATEGY?" It is the bringing together of privately held companies into an existing publicly held and trading company. Why is this a thing? Well, it gives private companies access to public capital markets and monetizes the value of their business.

"With Signing of Letter of Intent to Acquire Highly Accretive Online Game"
How do acquisitions begin? With the agreement of the company being acquired. This is called an LOA (a Letter of Agreement). Are their details to be worked out? Probably, but the idea is that they are already in agreement in principle.

What is more... not only has this private company agreed to become acquired, but it is bringing to the table substantial and profitable revenue. It is already generating over $9 Million in revenue and doing so at a profitable level. So much is this the case... that as the Sub-headline states:

"Acquisition allows SPYR to Achieve Profitability with Over $9 Million in Revenue"

It is pretty clear that SPYR has been building an infrastructure for greater things to come. I believe they have added employees, management, and sub-contractors to become a player in the video gaming market. With this acquisition, they will begin generating revenue and even be able to achieve profitability. While this is often easier said than done... it is certainly progress in the right direction.

Over the last year, SPYR has developed numerous capabilities... software programming, game development, a broad marketing strategy, and even a means to monetize their efforts. One thing they've developed is the ability to accept as payment most of the major forms of crypto-currencies... why? Because they have plans for utilizing it as a mode of payment down their road.

Also, Notice... the company or game is ACCREDITIVE... that means is profitable and growing increasingly so. It is going to substantial contribute to the company's bottom line. According to the press release, the game that's been acquired is primarily accessed on desktops. Well, we happen to have some programming gurus who will be able to adapt the desktop version to handhelds (phones) and tablets.

There is more to say... but I trust all this is making clear where we are and where I believe SPYR is going as a company.

A FINAL THOUGHT: Think about this... oo company that is going to become "rolled-up" into a public company will be able to "cash-out" unless the company as a whole succeeds. So while we as investors might be playing the short game and be looking for profits and opportunities to exit with profits, management and current and future acquired companies are in for the long haul. They will look to maximize their value by the overall success of the company.
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My guess is their exit strategy would be to be bought out or acquired by a major player in the gaming industry. All just my opinion FWIW.