Cataca Resources Inc (OTCMKTS:CATQ) Climbs Amidst Corporate Developments and Expansion Plans

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Cataca Resources Inc (OTCMKTS:CATQ) has traded up significantly higher over the past month, from $0.70 to $2.58, a 369% gain. It’s announcements relating to new corporate developments and its domestic and international expansion should be catalysts for it to move significantly higher.

It appears that some investors looked to take some profits at the table and the stock has pulled back to $1.95. CATQ has seen an influx of interest recently. Its 10-day average volume of 1.22 million shares is twice the 30-day average volume of 571.3k.

On September 9th, Tobi Mac Aro, the majority shareholder of FlitWays and sole officer of CATQ, a fully reporting public shell, caused FlitWays, which he founded, to go public by executing a reverse merger with CATQ. The reverse merger between CATQ and FlitWays was completed on October 14th and CATQ issued 20 million shares to FlitWays shareholders as a result of the transaction. CATQ has engaged a new accounting firm and has undergone a name change to FlitWays Technology Inc. A change in CATQ’s symbol, to FLIT, is forthcoming. It should be noted that there were no disagreements with the former accountant on any matter of accounting.

FlitWays focus is on business travelers. It has uncovered a niche left open by Uber and Lyft. Users can pre-book rideshares, taxis, black cars, and airport shuttles in 170 cities. Its unique selling point is that allows its users to schedule these up to one year in advance. Currently servicing over 400 airports with a fleet of over 20,000 vehicles, FlitWays aims to provide travelers with secure booking and all-inclusive rates.

On October 31st, FlitWays announced plans for their new headquarters located in Silicon Beach, as they prepare for a hiring surge of new business development executives. The new FlitWays headquarters is approximately 50x the size of its previous space. FlitWays founder Tobi Mac said:

“FlitWays is excited to be moving into its new headquarters in the Los Angeles Silicon Beach tech hub. FlitWays is rapidly expanding, and the new employees and a new headquarters will fuel the next stage of our planned growth. Workplace culture and amenities are key to growing a successful company. We want to attract the absolute best talent available, so it’s extremely important that our employees enjoy their time at the office and feel inspired. This new Silicon Beach space will help to accomplish that.”

FlitWays domestic expansion plans caused CATQ to announce on November 2nd that it has signed a partnership with Megabus (megabus.com) in an effort to make travel-ride booking available at every major point of sale. Megabus.com is one of the largest privately funded providers of city-to-city express bus transportation in North America. Using both megabus.com and FlitWays, ground travelers can receive door-to-door service. The FlitWays booking engine will give megabus.com travelers the ability to select between its transportation options to find ways for travel between the megabus.com stop and their final destination.

In respects to international expansion, FlitWays today announced plans for their expansion into South America markets. It will be immediately available in 15 major South American cities (10 new countries). This is a part of its strategic international expansion plan that will be announced over the next several months. FlitWays plans to partner with corporations, travel agencies, and other travel suppliers operating in South America. The goal is to make FlitWays ground transportation available to every traveler going to South American markets.

During the six months ended June 30, 2016, FlitWays recorded revenues of $173,049 and gross profit of $58,828 compared to revenues of $124,831 and gross profit of $14,663 during the six months ended June 30, 2015. The increase in revenue and gross profit is due to an increase in overall business. Gross profit margin for the six months ended June 30, 2016, was 34% compared to a gross profit of 12% during the six months ended June 30, 2015. The increase in gross profit is due to a combination of economies of scale with the increased activity during fiscal 2016 as well as the ability of management to minimize overall costs in order to increase the profit margins.

At the present price, CATQ (soon to be FLIT) has an intraday market cap of $100 million. It’s an interesting play with a tremendous upside as CATQ moves forward with its plans in the ground transportation industry. With new headquarters, new accounting firm, name and symbol change, move to a new corporate headquarters in Silicon Valley, international expansion plans and the partnership with Megabus, it appears to be poised to move higher over the long-term. For the latest news and analysis on CATQ, sign up below!

Disclosure: We have no position in CATQ and have not been compensated for this article.

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