GREY:CLRYF - Post by User
Post by
railbirdon Oct 04, 2017 1:23pm
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Virtus Advisory - October
Virtus Advisory - OctoberClarocity (TSXV:CLY) - Clarocity continues to make good on the strategy outlined in early 2017 of focusing on two key components: revenue growth and cleaning up the company’s capital structure.
- On the first point, the company recently announced a contract extension with USDA amounting to CAD ~$4.7m over the span of a year. The contract includes both traditional appraisal services as well as alternative. As mentioned by CEO Shane Copeland previously, the company is now only announcing contracts when they are revenue generating – investors can expect the USDA contract to immediately add value to the company.
- In regards to the company’s cap structure, warrantholders approved the elimination of 53 million in exchange for shares. While you can read our previously released thoughts on the proposal in full here, we are very pleased with this outcome. A significant warrant overhang can have a detrimental impact on any stock and this elimination is one less hindrance in the company’s way when further good news is announced.
- While driving revenue growth remains key to the company’s strategy, it has been communicated that achieving breakeven is a major milestone that is being aimed for mid-2018. At the rate the company has been growing, this appears to be achievable.