Today, we need to talk again about AmbiCom Holdings Inc (OTCMKTS:ABHI), the IT company, which we recently featured in a piece called “AmbiCom Holdings Inc (OTCMKTS:ABHI) Is Another Play On Bravatek Solutions Inc (OTCMKTS:BVTK)”. Our readers will be remembering well that this company is affiliated with Bravatek Solutions, Inc. and Voosh LLC, thus ABHI’s share price is affected by the new developments of these two companies. Sometimes, the reaction occurs a little later, but it seems to take place always. Additionally, we mentioned that the company has a very low float, which may explain the large volatility seen in the stock chart.
ABHI’s share price increased very recently from $0.0007 to touch the level of $0.0016 in only one session. Beside that, volume has been rather strong. Have a look at the recent share price action:
Did the company release any new information?
That’s interesting as well as intriguing fact. The last press release was received by the market on September 1, 2017, whereas the last financial information was received by the OTC Markets exchange on July 21, 2017. In this article, we will explain what, we believe, caused the share price spike.
Let’s briefly revisit the background of ABHI for those who don’t know the company. ABHI, founded in 2008 and headquartered in Nevada, provides cloud-based active optimization services for PCs and servers. Additionally, it is always interested in the acquisition of tech businesses with high margins and a high return on equity.
The most remarkable recent development is the lawsuit against a company called PC Drivers Headquarters, LP, for damages of at least $10,000,000 and nonpayment of a service set for $200,000. The market did not receive any news regarding the lawsuit, but we need to be alert. We, along with many market participants, consider this case as one of the largest catalysts for this company, since winning it could push up the share price.
How can the recent share price move be explained?
Like we said, the company is affected by the share price reactions of BVTK. We had a look at the recent share price action in the BVTK’s stock chart founding a new upward trend. Have a look:
What’s the relation between the two companies?
Bravatek Solutions Inc. has a special business relationship with AmbiCom Holdings Inc. through its Marketing Affiliate Program (MAP). Hence, if Bravatek Solutions Inc. is able to develop its business and sell products, AmbiCom will benefit from the business connections and the brand recognition created.
What’s new from BVTK?
On September 7, 2017, the market celebrated the release of Strategic Alliance Agreement with DarkPulse Technology Holdings, Inc. According to the press release, BVTK will be a partner of this company by helping in finding prospective clients in the private and public sectors for DarkPulse’s patented distributed fiber-optic sensing technology. The services provided were explained with the following terms:
“DarkPulse offers a full suite of engineering, installation, and security management solutions to industry and government. Coupled with their patented technology, DarkPulse provides customers a comprehensive data stream of critical metrics for assessing the health and security of their Critical Infrastructure and Key Resources (CI/KR).” Source
The most remarkable was what Dr. Thomas A. Cellucci, Bravatek’s Chairman & CEO, explained. He said that the new agreement will help the company enter into the monitoring of large critical infrastructure and security markets, which is, as he said, an important priority for the Trump Administration.
We believe that the new deal will not only serve BVTK and DarkPulse, rather the new contacts with the Trump administration will also help increase the sales of AmbiCom’s products. That may explain the increase in the share price of AmbiCom some days after this announcement.
Most significant was, in our opinion, the announcement made on September 20, 2017. The share price of both BVTK and ABHI increased following this news. BVTK entered into a Letter of Intent with HelpComm, Inc., a telecom construction services corporation located in Manassas, Virgina, to purchase HelpComm. The terms of the agreement can be checked here.
Why is the news so relevant?
If the negotiations between BVTK and HelpComm, Inc. end up well and there is a transaction, both companies will grow in assets, know-how, and business connections. Thus, it will be good for BVTK and as a result ABHI will also grow, as it is a direct affiliate of this company.
Do you need the share structure of BVTK? It may help now that it may merge with HelpComm. Have a look:
|Market Value||$32,384,092||a/o Sep 21, 2017|
|Authorized Shares||10,000,000,000||a/o Sep 15, 2017|
|Outstanding Shares||7,531,184,221||a/o Sep 15, 2017|
|-Restricted||527,756,641||a/o Sep 15, 2017|
|-Unrestricted||7,003,427,580||a/o Sep 15, 2017|
|Held at DTC||6,976,995,004||a/o Sep 15, 2017|
|Float||1,112,694||a/o Jun 21, 2016|
Currently trading with a market cap of $2.2 million, ABHI is an interesting story among small caps. As we said in our previous article, ABHI is low float runner. This means that if market participants try to acquire a large stake, the share price may move quite a bit. This is what may have happened on September 21, 2017 when the market received news on the Letter of Intent. We believe there’s a lot more to come from ABHI and its affiliation with BVTK. Look for share price appreciation to continue.
We will be updating our subscribers as soon as we know more. For the latest updates on ABHI and BVTK, sign up below!
Image courtesy of abdullah.khan2012 via Flickr
Disclosure: We have no position in ABHI or BVTK and have not been compensated for this article.