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Ackroo Inc V.AKR

Alternate Symbol(s):  AKRFF

Ackroo Inc. acquires, integrates and manages gift card, loyalty marketing, payment and point-of-sale solutions used by merchants of all sizes. It develops and sells an online loyalty and rewards platform. Its self-serve, data driven, cloud-based marketing platform helps merchants in-store and online process and manage loyalty, gift card and promotional transactions at the point of sale. Its hybrid management and point-of-sale solutions help manage and optimize the general operations for niche industries: automotive dealers and more. It is focused on helping to consolidate, simplify and improve the merchant marketing, payments and point-of-sale ecosystem for their clients. Its GiftFly is a self-serve eGift Card platform. Its Simpliconnect business offers software as a service, focused on driving client engagement. Its payment ISO affords the ability to resell payment processing solutions to their growing merchant base through some of the payment technology and service providers.


TSXV:AKR - Post by User

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Post by Torontojayon May 16, 2022 5:33am
384 Views
Post# 34685549

Growth by acquisition

Growth by acquisition

Works well when your share price is inflated and you can purchase companies at a cheaper multiple than your own. As the share price continues to decline, it would make more sense to grow organically. 

Their debt to ebitda ratio is very high and adding on more debt in this current environment would be suicide. 

Raising capital or debt should be out of the question. They should use their existing cash balance for sales and marketing given that it has a lower customer acquisition cost. Take it slow and things may just turn around. 

Francis Shen was right in his concern. 

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