There have been a ton of developments in On4 Communications Inc (OTCMKTS:ONCI) since the last time we mentioned the stock here on Street Register. At that the time company had already begun getting its safe driving app and gps tracking devices into more vehicles, and more agreements have since been announced.
A couple of weeks ago, ONCI revealed that it had expanded its sales staff from 4 to 20 individuals, to work purely on commission. Considering how quickly it was signing agreements prior to that, it would be safe to assume that the company has no intent of slowing its rapid expansion anytime soon.
Just two days later, On4 Communications Inc (OTCMKTS:ONCI) signed a contract with a 250 Dealer Extended Warranty Company in New York. The Contract is set for 200 units per month to start, at $200 per unit with option for an additional 500 units.
ON4 Communications CEO Steve Berman states, “They sell extended warranties including dent and ding as well as tire and wheel to 250 dealerships. This allows On4 Communications to sign 250 dealerships immediately without having to visit each one individually.”
“We are also pleased to announce we have signed an additional JV with NECA Corp to create 3 additional apps for the auto insurance, safety and warranty business. We will use NECA’s team to develop the apps and On4’s marketing team to sell the apps via SEO and target marketing. These apps will go BETA in January 2018 and rollout is expected June 2018.” (Source: Marketwired)
In addition to operational progression, we received word of a massive share reduction midway through last week. The company reduced the number of Outstanding and Authorized shares by 1.4 billion each. The new share structure will be reflected in the next quarter financial report due December 15.
CEO Steve Berman states, “This reduction in shares has been a long time coming and current dialogue with FINRA has given us the confidence to proceed with this important step at this time.””
In the same release, ONCI also announced the hiring of Peter Einstein. Peter is currently based in Serbia and will be running international sales. Peter has held numerous positions in the communications industry including President/CEO, Showtime Arabia; President, MTV Networks Europe; Chairman, Eclipse Media Group and Deputy CEO Rotana Media Group. (Source: Marketwired)
CEO Steve Berman states, “We are in the perfect storm of business, and dealers and manufacturers realize that they need to put an end to the worldwide epidemic of distracted driving. We are now in dealerships in over 25 states and have a global presence in Asia and South America and Europe.”
To address the needs of the Eurooean markets, ONCI signed a letter of intent to purchase a 15,000 sq. ft. factory in Budapest, Hungary, so we’ll be awaiting updates on the status of that deal.
Indeed, so much is going on with ONCI that it can be difficult to keep it all straight, but we definitely will try pour best. Especially considering the fact that this was a super-subpenny stock when we first began covering it here. You can keep track of ONCI too, right here with us. We’ll stay up on any further developments with ONCI and pass them along to you! Stay locked on StreetRegister.com and be sure you’re signed up for our 100% free smallcap newsletter. It’s as easy as that! Simply submit your primary active email address in the box below. Subscribe now!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in ONCI stock, short or long.