Ameriguard Security Services Inc (AGSS)

[cmacktrades]

Long post here with some additional details and thoughts regarding the Ameriguard YouTube interview from March and potential delays in the merger being completed.

This link will take you to 4:30 into the interview when Douglas Anderson (board member, CEO of Wall Street Capital Partners) speaks:

Doug mainly talks about 2 things - acquisitions and going public. He says that Ameriguard has multiple acquisition targets within its sights. Doug also mentions that Ameriguard is uniquely positioned to take advantage of the current fragmented market and market conditions. Lastly, he notes that he expects to be back for interviews soon regarding those acquisitions and going public.

You can read all about Doug's experience as an underwriter, investment banker, assisting with mergers and acquisitions, IPOs, capital raising, and much more here: https://wallstreetcap.com/about

Considering his past experience, I find it interesting that Ameriguard is going public via a reverse merger with an OTC shell rather than IPO directly to the Nasdaq or NYSE. Doug knows as a previous underwriter that a reverse merger brings the most value for Ameriguard and its investors. Underwriting fees are the largest cost associated with IPOs. Doug likely knows from experience how harmful going public could be during a volatile market like the one we're currently experiencing.

In addition, acquisitions and business combinations are likely much easier to complete as a private company. I think it's highly likely that Ameriguard is waiting to officially complete the merger until those aforementioned acquisitions are complete.

More on that now -

This link will take you to 7:30 into the interview when Ameriguard's CFO Mike Goosen speaks:

Mike talks in more detail about the acquisitions. He mentions that the targets are related businesses and in related industries. He also says that "a couple" acquisitions could be happening as early as 3-4 months from the interview date of 3/29. That would put them around July without any delays, or perhaps closer to now with delays.

I'm analyzing this interview in detail because I think all of our answers are here. It's the only real substance Ameriguard has given us outside of formal filings.

In my opinion, acquisitions and current market conditions are holding up the merger. Why take a chance going public now when the S&P 500 just made a new 52-week low? They could instead take advantage of the relative weakness in the market by focusing on acquisitions and expanding the business privately in the meantime. Then they can go public whenever they see fit with a considerably higher valuation and higher revenue projections as Mike said.

All the groundwork has been laid out. They're going to finalize the merger when it works best for the business - not for us as AGSS shareholders. They are in position to do it any time as they continue to pay for filings to be able to pull the trigger on a whim. I truly believe patience will pay with AGSS, and you have to understand that we are still potentially very early with this one.