Possible catalysts
Fair question to ask what could turn around shares. In the OTC, I've often found deal announcements are the big trigger. M&A, partnerships, big contracts etc. I've seen many companies with mediocre current fundamentals announce a couple of "game changing" acquisitions and the shares get bid up aggressively.
Possible catalysts that I'm looking for:
1. Partnership announcements. CEO Corbett said the following in the shareholder letter from early October:
PARTNERSHIP UPDATES
We are currently in discussions with multiple partners that could lead to the expansion of our remittance distribution capabilities in five of the nine largest international destinations beyond where we have previously announced, excluding China. Partnering with companies that have local expertise, licenses and infrastructure allows us to operate more independently while increasing our service and product set in accordance with local market governance. If successful, these partnerships could have bi-directional remittance rails to Mexico, the Philippines, India, the UK, and the European Union. We are currently submitting an application for an EMI (Electronic Money Institution) license in both the UK and the European Union which, if approved, would take approximately 90 days to process. Our rails to these various countries could, over time, include value-added services, such as VISA debit cards, bill pay, "buy now pay later", micro loans, and cash advances against employment income.
We will continue to look to invest in companies, teams and technologies that empower our core product set from a service, customer acquisition and regulatory standpoint.
2. R/S uncertainty. Let's assume the motion passed. The uncertainty is at least over with and Corbett could explain the rationale behind it. Let's keep in mind that the R/S really only makes sense when the stock is at least trading at $0.15 and even then, the market cap would barely be over $50mm. The Nasdaq and underwriters would typically want to see the market cap on the OTC be well above $100mm to provide some cushion. I'm not saying those are the requirements, just the practical reality. IMO, the share price needs to be at least $0.25-$0.30 for the R/S to make sense. If they have some common sense, they'll realize that the stock probably sells off some after they officially announce an R/S, so the share price should ideally be over $0.40-$0.50.
3. Traction. Wallet downloads, prepaid card customers, payroll customers...data on traction in those areas would help the stock too.
Of all the catalysts, I think partnerships are key. Getting some important financial institutions to open up additional markets would be a big positive. After that, doing some deals to augment their capabilities would also really help the share price. They could structure the deals with convertible preferred to limit dilution and keep the float relatively low.
Their focus should really be on boosting the market cap well above threshold levels.
AI
