Pinnacle Activity Ticker
GINSMS(GOK.v) transaction with Iphosoft valued at 6.8 to 8M$, current market cap is 1.1M$
GINSMS is expected to seal the deal with Inphosoft on September 14th 2012, with trading to resume shortly after.
An independent evaluation was conducted by BDO Canada, resulting in a fair value of 6.8M to 8M$. Anybody wanting a copy can simply email email@example.com and ask for a free copy of the report. The company last traded at .025$ for a market cap of 1.1M$, which did not included Inphosoft, only the GINSMS platform.
Here are some important details of the transaction from an investor perspective:
- Inphosoft declared 796k of profits in the year ending dec 31 2011
- 2M$ of convertible debentures at 0% interest rate are linked to 2012 financial performance; Inphosoft needs to make more than 1M$ net in 2012, or else the purchase price shall be reduced
- Inphosoft has operations in Singapore, Malaysia and Indonesia, with more than 100 deployments among mobile operators, financial institutions and media companies
- Inphosoft has 31 employees: 15 in Singapore, 10 in Malaysia and 6 in Indonesia
- Inphosoft currently has 77 contracts with recurring clients such as Acision, Starhub, PP LinkasTeknologi, Isentric, Celcom, Malayan Banking Bhd, CIMB Bank Bhd and the Royal Bank of Scotland Bhd.
- Gross margin in 2011 was about 81%, which produced 796k net
- Products currently under deployment are InphoAd, InphoManager, InphoTransact, InphoConnect, MessagePlus, InphoM2M, InphoMaxx and InphoShop
- Another revenue stream is from professional services such as system integration for Enterprise, Telecommunications and Financial Services Industries, Managed Services and Global 24/7 Support and maintenance
- The company expects roughly 33% revenue growth in 2012, to reach 3.4M$, excluding GINSMS revenues
- Inphosoft had 1.7M$ of working capital as of march 31 2012, with no long term debt, and had already generated over 340k of net profits in the first 3 months of the year, while being free cash flow positive
The convertible debentures bear no interest and have 3 year span, which the company can reimburse at any time. The 10.5M$ debenture are convertible at 10 cents, with 2M$ related to profitability performance of 2012. Inphosoft is expected to manage the GINSMS platform (cost savings), while adding VAS services to the current business. Customers and contracts outside of Asia are under analysis to spear international growth.
With this significant transaction approaching completion, could the company hire a prominent Small-cap investor relation firm and showcase its return to profitability?
Investors are welcome to keep an eye on this low priced stock, which should provide a price multiplication possibility.
The above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, director, manager or employee of the aforementioned company, just a shareholder. Some typos could have occurred, do your own due diligence.