mCloud Technologies Corp (MCLD)

[WallStPirate]

Marin Katusa likes McLoud and he has thousands of followers.

Great info as he states McLoud pitched him because he is an oil man and understands what they have for oil and gas.

https://www.macrovoices.com/podcast-transcripts/609-marin-katusa-everyone-s-focused-on-gold-but-the-real-buy-is-in-oil

From interview:

Marin: For sure. I got a lot of feedback on that one. I’ve known the management team for over a year. And when they came and pitched I said, okay, let’s see what they do. And essentially where I thought was incredible potential was what they were doing in the oil patch.

And, like I said, nothing creates innovation more than a downward price in the price of oil, specifically in Canada. And that creates innovation.

So at the oil head, they now have sensors where every second you could analyze 500 different data points between your sulfur level, your water level, your pressure, your different aspects. You know your API.

So many of these independent things that three or four years ago they didn’t have. And the technology now has gone to the point where it’s readily available.

Now the question is, what does the company do with all this data? So Universal mCloud, one of their subsidiaries is called Autopro. And they really are a massively growing innovative company that has over $30 million in revenue, just off of what I call the FitBit for the wellhead.

It tells exactly what’s going on every second with hundreds of data points. Therefore, if the price of oil or your well pressure head or your sand level, it will be able to optimize each of these wellheads.

And that’s just one aspect.

Then you look at all of these existing – take the oil sands or a battery for the oil where all the oil goes to be held before it goes into the pipelines. Or just your gasification plants. All of these factors, it comes down to – you’ve got to send a crew to innovate.

And how do you get enough guys where, you’re in the middle of nowhere. You’ve got to send a welding crew. You’re looking at a couple of thousand bucks an hour to replace a valve or whatever goes down.

And you’ve created this ability where they’ve already pre-scanned – think of blueprints for a house. They make it 3-D and each point has a sensor that is telling and it’s predictive on how much of the valve is still existing, or the pressures, you should take this out.

Or, more importantly, when it does go out now, you don’t need a senior guy because now you put on a headset and it walks you through in 3-D what to do. And it’s proven to improve the speed by over 30%, which reduces the costs of maintenance. And that’s a huge thing, is about utilization rates and downtime.

So this company is cash flowing. They make money. The way I structured it was they went to do another deal and they were going to raise $10 million. The management team were going to take 5, and a bunch of bankers were wanting them to go on tour.

And I just told Russ, who is the president of the company, going, look, I will do half of it personally but I need these terms. And it was a convertible debenture. And the convertible debenture feature pays me and all my subscribers 10% cash quarterly for three years. But if we convert the stock, we get a unit at 50 cents and a full five-year warrant at 75.

And you look at what’s going on. They haven’t even started in the US, which they will.

And then there are other aspects like the HVAC business. They did a deal with Bank of America, Tim Hortons, Starbucks. And they’re just about cash flowing and just smart business. I expect much larger funds in Canada, REITs coming in. And it’s just smart business.

So I structured it where we get paid 10% for three years. And if the stock takes off, fantastic, we convert and we’re going to make a lot of money. And if the stock just stays where it is in revenues, they’re able to pay the debt and it’s a nice pass is the way I see it.

I actually believe in this management team who I’ve gone and spent time – and you go to their office, you go to their assets. You realize they own 43% of the company themselves, post- the financing we did. They’ve got skin in the game. They’ve done it before. I’m willing to back these type of right people.

So that’s where that was.