What are two things that all investors like? Trends and bargains. The trend is your friend. And one of the hottest trends at the moment in markets is blockchain.
Investors also like bargains – for obvious reasons. That’s one reason why more and more investors are turning to the Stockhouse DealRoom: corporate private placements represent bargain opportunities. The latest DealRoom offering provides investors with a hot trend and a bargain: FTI Foodtech International (TSX: V.FTI, Forum).
Let’s start with the bargain. FTI is trading (at present) at $0.63 per share. The Company’s private placement is offering units at a price of $0.50. Each unit entitles the holder to one common share and one common share purchase warrant. That means that investors who choose to participate in this private placement will acquire their shares at more than a 20% discount versus the prevailing share price.
The full warrant that accompanies each unit is purely a bonus. Each warrant entitles the holder to acquire one additional common share, at an exercise price of $1.00. Warrants remain valid for 12 months from the date of the closing of the placement.
The bargain here is easy to see, so is the trend. Blockchain is billed by its proponents as nothing less than technology that can/will revolutionize much of human commerce. With such a broad platform, tech companies are still exploring different avenues to capitalize on this opportunity.
One company that is pioneering a unique application for blockchain is FTI Foodtech International. Its business is focused on the commerce of bargains: bartering. Bartering is an ancient form of commerce based upon one tried-and-true premise. By allowing prices to be negotiated between vendor and purchaser (as opposed to fixed prices), this will result in a significantly greater volume of commerce.
Blockchain is a natural vehicle for barter-based commerce – in cyberspace. It offers two obvious advantages for engaging in cyber-bartering versus using existing payment platforms. Blockchain not only represents the most secure form of e-commerce, it adds one other important ingredient: transaction transparency.
Blockchain provides precise identification of which entity is on each side of a transaction, as well as providing accounting history of all other transactions that are a part of this “block”. By incorporating security and certainty in these transactions, this makes FTI’s blockchain-bartering platform corporate friendly.
This is a key element of the Company’s business model since FTI’s focus is on bringing corporations together to barter. Barter what? In general terms, it is a vehicle to allow corporations to liquidate surplus equipment/merchandise, in an efficient and cost-effective manner.
Corporations are frequently upgrading their infrastructure and technology. Companies often migrate from one sub-sector to another (over time) as demand trends change. The problem: what to do with the surplus equipment no longer needed in new operations?
FTI is the answer to that question. Via its blockchain-for-bartering platform, it provides an attractive vehicle for corporations to monetize surplus assets. Companies get access to a new revenue stream. FTI takes its cut for facilitating this commerce with its blockchain platform.
Getting in early: this is an important investor strategy not only with respect to individual companies, but also emerging markets and sectors. With FTI’s new private placement in the Stockhouse DealRoom, investors are “getting in early” with respect to blockchain, in general. More specifically, this is an opportunity to get in early on a new blockchain application.
The Stockhouse DealRoom: your destination to participate in exclusive financings, featuring some of the best companies – and deals – currently available on the market.
www.fti-foodtech.com
FULL DISCLOSURE: FTI Foodtech International Inc is a paid client of Stockhouse Publishing.