Look them up. IGN does GIS advising and education, when they get a contract to install SDI they sub it out. Not a direct competitor and serves as more proof that things are moving along.
Vertex has over $1b in assets, so selling ITMSF can't be about money. It was less than a month ago that ITMSF and Vertex renegotiated debt, so it stands to reason that Vertex knows if ITMSF is about to default, or if a contract fell apart, and they are selling on this info, all of $1.2m worth. So to me, the fact they are selling means there is no negative coming. Now why are they selling now instead of last year? They could be making room on the books for more, I don't know what agreements they have **EDIT** I looked up the rule. I take their selling to be a very bullish signal. It does mean they are making room for debt conversion, warrant execution, or a issuance of stock for royalty elimination. Can't see any negative, would appreciate the devils advocate to step out.
Here is the rule
What Happens if I Become a 20% or Greater Shareholder?
Do not become a 20% or greater shareholder without first speaking with Canadian legal counsel. Canadian securities laws prohibit acquisitions of outstanding securities of an issuer that result in an investor holding 20% or more of a class of voting or equity securities of a Canadian public company without making a formal takeover bid (that is, a public tender offer). There are a few exceptions to this requirement, including purchases through private agreements and limited public market purchases, but it is important to get specific legal advice about them before increasing your ownership level to 20% or more
Vertex likely wants to see 2 things before they drop the interest rate on these loans to a reasonable rate. 1. That the DRC makes its payments on time with Intermap executing the contract milestones. 2. That Intermap is not a one hit wonder, but that they can in fact close multiple deals. The debt now being due in Aug tells me that Intermap believes they can accomplish whatever it is that Vertex wants to see, well in advance of Aug.
we have about 3-4 more weeks at this level. 2 things will happen at the same time, either $12m and debt/royalty restructure, or 2nd contract debt/royalty restructure. Either one sends this up big because it will remove all remaining fears/caution.
There are 2 debts due again this week, around $1.5M due today, and $5.6M due tomorrow. If there is no PR, then we can assume the same thing as the Jan 9/14th debts that news about them will be delivered with news of a substantive nature, that being either $12m deposit, or possibly the 2nd contract closing.
No one ever "knows something", they just do better DD. In this case, it has been blatantly obvious that a $20m company signing a $200m contract will drive the stock up huge. The contract allots for $10m in revenue every 3 months, assuming a 50% margin, that is $6m a quarter, or $24M in profit a year. give it a modest of 2x revenue ($48x2=$96m) or 5 x earnings ($24 x 5=$96m). And that is being very very low on the estimates. So buying at $0.30 and holding to $1 or more....
Invesco is finished dumping their 8m shares, so the supply of cheap shares is pretty well gone now. Once they start work on the project and get the $12m, it will fly.
The company is 4 years old, the CEO is a young man with no previous experience as a CEO, so a learning curve is justified. As to financing, I would ask you to suggest another way for them to do their research without financing. I don't believe I deflected anything, but if you feel that way, that is your prerogative. I will satisfy your objection here by saying management has done a lousy job of communicating and providing guidance. you are correct that data is all that matters, a point I made very clear.
You'll have to go to SA to get the few links I put in the article. Overall, still believe this will prove out a winner, just going to take a longer time now.
Some questions to ask yourself. $3m in debt was due Jan 9th, an extension was made only to the 1st week of April and announced at the same time as the contract. Why only a short extension, what will change between now and then? $7m in debt is due end of this month. Why was that not included with the $3m in getting pushed back to April. What could possible change in the next 2 weeks (3 weeks from time of announcement)?
Vertex was willing to do this. Why?
Obviously the goal is to renegotiate all debt at a lower interest rate, but what is going to change between the time the contract was signed, and the 1st week of April?
My take is that Invesco selling their shares killed the momentum. What we need now is an event to get it back. 2nd Contract closing, which should be close, or PR about starting work on this one. It takes time for the market to respond properly to an event some times. I didn't see anything about the first payment and the timeline for making it, however I do feel that all financing has been set up for some time. So I'd say 4-6 weeks at most., probably less
I'd be more inclined to believe in a buyout. If not a R/S is a guarantee for later this year, that usually will drive the price up as well.
expect financing to come in early March. Should be the time that those who want to play it safe decide to put their money in.
Invesco, the 2nd largest shareholder has been forced to sell all their shares in Intermap, they have dumped almost all the 8m shares they had as of Jan 1st. Price doesn't matter to them. Once their shares have finished selling at these prices, the supply will dry up, volume will become anemic till the $13M hits the bank which should happen in the next 6 weeks. In a marathon, you don't celebrate after the 1st mile, nor do you cry about falling behind.
Right now there are 12m shares owned by Invesco, they have been dumping shares of Intermap all last year, and are probably unaware of the recent events having written the company off. Once there shares are bought up, I would expect a significant upwards move on this. The contract is completed, as in all parties have agreed, one can only argue otherwise through pure deceit, every contract has built into them things that are contingent, in this case financing. Financing will not be a problem, there are dozens of sources for funding to pay for this project. So the only question is profitability, how much will they actually post as profit, vs. revenue only. Rich said that the 17% royalty would have a negligible effect, and unless he was honest about everything else and only chose to lie about that, then this should be a very profitable deal. I figure they will probably be in the $30M range this year, depending on when they get started, what projects are up first. Mapping won't be as profitable as software, nor will hardware installation. Training will be more profitable, etc.