Why On4 Communications Inc (OTCMKTS:ONCI) Shares Jumped 85%
On4 Communications Inc (OTCMKTS:ONCI) shares were up 85.71% on Wednesday to $0.00130 and unchanged in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.01. The company has a market cap of $3.64 million at 2.80 billion shares outstanding.
On4 Communications Inc is a company that intends to become the onsite provider of certain mobile home care dental related services to senior citizens in their senior assisted living facilities where such onsite services are not being provided. The company is also focused on providing other medical services, with the additional focus of acquiring and/or merging businesses primarily operating in the healthcare industry. The company was engaged in providing prepackaged software as well.
In a press release, On4 Communications announced that that they have released their fiscal Q1 earnings on OTC Markets and reported their first ever revenues.
“I am proud to announce the first ever revenue flow for On4 Communications which initiated in November 2016 from our initial FMS Clients,” On4 Communications CEO Steve Berman stated. “I also wish to assure our shareholders that we are lowering ONCI’s O/S by 1.5B shares as previously stated and advise our shareholders to please watch for a Supplemental Filing on OTC Markets for the O/S reduction to be reflected soon. As well, we’re currently in the process of redomiciling On4 Communications in the State of Colorado and delivering on our earlier promise of reducing ONCI’s Authorized Shares.”
He added that their reported Q1 revenues only represent the initial FMS purchase orders which began to flow into On4 Communications at the end of November 2016.
ONCI has now entered a bold new era of growth during fiscal Q2 and I very much look forward to renewed communication to market on several exciting growth driving fronts over the next several weeks,” he concluded.
The company’s first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry and their new targeted businesses are operating in the trillion-dollar mobile app space. Their first acquisition in this space is FMS Marketing, which is a global creator and distributor of mobile apps for Android and iPhones. The company is also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space.
At the start of this year, On4 Communications Inc secured 8 new Auto Dealer Vendors in Florida State for their premium FMS Drive Safe App. Berman noted that it takes approximately 6 months for full vendor implementation but that they extrapolated attaining an average $7K in recurring monthly revenue per vendor.
With the demand for our FMS Drive Safe App service now gaining an incredible amount of traction amongst auto dealers, I will be returning to Florida in approximately 3 weeks to close on 10 more auto dealers who have already expressed a great deal of interest,” Berman explained.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.
How Canopy Growth Corp (TSE:WEED) Shares Reacted to Earnings
Canopy Growth Corp (TSE:WEED) shares were down 8.08% to $11.95 on Tuesday and flat in after-hours trading. Share prices have been trading in a 52-week range of $2.70 to $17.86. The company has a market cap of $1.99 billion at 159.13 million shares outstanding.
Formerly known as Tweed Marijuana Inc, Canopy Growth Corp is a diversified cannabis company. Through its subsidiaries Tweed Inc. (Tweed), Bedrocan Canada Inc. (Bedrocan) and Tweed Farms Inc. (Tweed Farms), is engaged in the business of producing and selling legal marijuana in the Canadian medical market. It is also focusing on producing and selling marijuana in the recreational market in Canada. Its core brands are Tweed and Bedrocan.
Tweed is a licensed producer of medical marijuana. Tweed’s commercial license covers approximately 168,000 square feet of its Smiths Falls facility and allows Tweed to produce and sell approximately 3,540 kilograms of medical marijuana per year. Tweed’s built-out production capacity is over 10 climate controlled indoor growing rooms. Bedrocan is a medical-grade cannabis. Bedrocan’s over 52,000 square feet production facility in Toronto, Ontario is licensed, and includes over 30 vegetative and growing rooms, and over three dispensing rooms.
Canopy Growth Corp recently printed its quarterly earnings figures and investors seem unimpressed. The company reported over 29,000 registered patients at December 31, 2016 compared to over 8,000 at December 31, 2015, representing a greater than 260% increase. It made revenue of $9.8 million, which amounts to a 15% increase over the second quarter in the fiscal year 2017 and 180% increase over the prior year period.
However, the company admitted that revenue growth was limited by the product mix available for sale, as supply was limited in the quarter due to rigorous procedures to fully test the record harvest and approve the extensive product released for sale subsequent to quarter end. Still, it was able to harvest a record 5,264 kilograms compared to 1,711 kilograms in the second quarter fiscal year 2017, which amounts to a 208% increase.
The third quarter provided new opportunities and challenges for our business, with demand largely exceeding supply throughout the quarter,” said Bruce Linton, Chairman & CEO of Canopy Growth Corp. “A function of our growing patient base, the time required to move from a record harvest to sale, and an extensive phenotyping exercise to establish breeding stock and further elevate our product offering all resulted in constrained product available for sale during the quarter. The successful late-quarter harvest of the Tweed Farms facility running at full capacity has begun to ease supply constraints while at the same time we have introduced a new diversity of product into our online store under the Tweed, Leafs By Snoop and DNA Genetics banners, driving strong sales this month.”
Other developments over the period included the acquisition of a 472,000 square foot and 42 acre property at 1 Hershey Drive, Smiths Falls, Ontario on January 13, 2017. This is on top of the acquisition of Mettrum Health Corp on January 31, 2017 and the change in the TSX trading symbol from CGC to WEED early this month.
We continued to push the boundaries of our business during the quarter through multiple strategic accomplishments that will help drive our future growth. We worked to strengthen our market position in Canada with our move to acquire Mettrum and the acquisition of Vert Cannabis to establish a unique brand presence in Quebec. We also established a base of operations in Germany, a strategic future market for Canopy, with the purchase of cannabis distributor, MedCann GMBH,” added Linton.
DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.