Axios Mobile Assets Corp. AXBSF

RE:RE:iGPS, RM2, other

[MishaPBJ]

All the pallets have to meet the fire/strength standards to be accepted at a DC, so they must be pretty good.

iGPS went nationwide with no logistics, tough to tell what is going on as Balmoral bought them out of 363 bankruptcy (https://balmoralfunds.com/investments/#iGPS-Logistics-LLC). They have built 10MM pallets, but they don't disclose current fleet (supposedly had high pallet inv shrinkage).

Being accepted somewhere (i.e. Loblaws) doesn't mean you will have business at that chain, it just means that they will accept you pallets if you have a client that ships into the DC, and they will sort them at the DC for you if/when they arrive.

I've been the old RM2 plant (old one in mississauga) and have picked up the pallet, maybe an old version, it wasn't 54 lbs, but maybe they've improved them.

Repair is interesting, seriously reduces margins at Brambles.

Axios claims to have not lost a pallet yet, they claim that their pallets go to the perishable goods DC and back, and don't flow through to stores, time will tell.

iGPS appears to have a national distribution approach, Axios is trying to have a regional approach, which should result in more turns and a quicker payback (less time on the road).

Bottom line its a big market that is ripe for some innovation, lots of room for all participants to do well.