12 Month PlanI would be happy with this strategy moving forward for the next 12 months, just my thoughts I'm no expert but I think this could work and get us going:
1. I know I am repeating myself but the board needs to go down to 5 from 9. Sorry that is a sticking point with me. That would add about $200,000 to the bottom line or can be used in R&D or Marketing.
2. I think a share consilidation of 10-1 is necessary. Just my opinion. That would bring the stock up to $2.20 to $2.40 give or take and a float outstanding of 26 million shares which is quite small. Get us on the TSX and still put us a little above the $1 threshold to be able to stay there and attract bigger firms and investors but we're on the main stage now.
3. I would then do a bought deal for $20-30 million for $1.90 a share. It has to be lower than the trading amount because firms want value unfortunately. Yes there would be dilution but the company needs a cash hoard if they want to compete and are serious about being "the leading DEM provider" Ok John, take a step back there. $5 million is not getting it done, nor will it in any space. The tech space is on fire right now so borrow as much as you can. That is how the cannabis players elevated themselves. With big money bought deals.
4. The Amsterdam, Paris and Texas offices need to close. We need to use the rent savings and get a presence in Seattle with Mircrosoft. If we want to be "their little buddy" then we need to live where they live and be on their doorstep and be their shadow.
5. Finally we need to merge with another public or private company of similar revenue amounts but still stay public. ENOW, Exoprise and One Soft Solutions come to mind. ENOW and Exoprise are private so I have no idea what they make but they are pointed out on page 13 of the investor presentation as being key competitors. One Soft Solutions only make about $3 to $4 million a year in revenue but have a nice cash pile of $10-13 million and no debt. They also service Microsoft but in a different way so it's a complimentary to Martello with no overlap. If this deal went through, along with the bought deal I mentioned earlier, our cash pile would be $35 to $40 million which would attract a lot of investors.
Again just my take, but I think this plan makes sense. This is a progressive and offensive strategy to attack the market and grow.