After losing more than 80% in market value over the last few months, Arias Intel Corp (OTCMKTS:ASNT) is starting to show signs of bouncing back. Investor confidence in the stock has picked up, after a string of positive news that shows the company is progressing well on its business plan.
The company has already completed a name change from First Harvest Corp to Arias Intel, to better reflect its evolution and vision. In addition, the company has achieved key milestones in technology advancement as well as advancement of its commercialization strategy.
While the stock is still trading in a downtrend, it has gained more than 100% in market value over the last few weeks. The stock needs to close above the $0.90 mark, to affirm the emerging bullish trend ahead of a bounce back from the all-time lows. In the meantime, support for any sell-off is at the $0.30 level, below which the stock could drop to its 52-week lows of $0.20.
We remain bullish about the stocks long-term prospects as trading volumes have picked up in recent weeks an indication that investors are starting to take one of the company’s growth metrics.
What Does Arias Intel Do?
Arias Intel bills itself as an early stage company focused on providing a digital media platform for tech, media, and gaming, which also includes augmented and virtual reality. The company is currently growing the subscription base of its digital platforms as it seeks to gather analytics and target advertising directly to users.
Arias Intel is also exploring a wide range of opportunities as it seeks to expand its suite of mobile games and apps that target audience in different demographics. In future, the company plans to generate revenue through in-app purchases as well as service fees and cross-channel advertising.
Catalysts for Recent Share Price Upswing
The stock has been trading higher in recent weeks, on Arias Intel underscoring its commitment to reducing outstanding debt obligations. The company has already entered into a Settlement Agreement and Mutual General Release with a certain debt holder. Under the terms of the agreement, the debt is to be settled on the issuance of 1.5 million shares of company’s common stock.
Arias Intel has also reached a debt settlement agreement with holders of $356,000 in convertible notes. Pursuant to the agreement, the holders have agreed to convert their convertible notes to equity shares of the company’s common stock. The company has also opened talks with another institutional investor as part of the debt reduction push.
“We believe the Company has taken positive steps to clean up the balance sheet and strengthen its financial position going forward. Reducing our debt was an important goal for 2018. We believe we will begin to generate revenue from our mobile apps over the next few months, and we are excited for the year ahead,” said Kevin Gillespie, the Company’s Chief Executive Officer.
Revenue Generation Prospects
Renewed investor interest in Arias Intel also builds on reports the company is on the cusp of generating revenues from its mobile apps, over the next few months. The company has already completed development of its on-demand delivery app, Ufly. The app is currently in beta testing and is designed to provide on-demand legal medical cannabis, to qualified patients and recreational users in the U.S.
Arias Intel plans to integrate the Ufly app with blockchain technology and cryptocurrency payment system.
“The Company believes leveraging blockchain technology may solve payment and security issues, especially for legal cannabis dispensaries. The decentralized ledger within the blockchain may allow for greater compliance and may solve banking issues surrounding the cannabis industry,” Arias Intel in a statement.
The digital media company has also set its eyes on the blockchain/ cryptocurrency space as it looks to diversify its business. It has already launched iNEO, a proprietary cryptocurrency and blockchain technology platform. Plans are already underway for the launch of iNEO coin or token that is to be used as a medium of exchange for the purchase and sale of products or services within the ecosystem.
The cryptocurrency will initially be integrated with the company’s portfolio of mobile games and apps.
What Next For Arias Intel
2017 was a pivotal year for Arias Intel Corp. The company is all but set, to start generating value form its efforts. A transition from a development to a revenue-generating company is one of the things that makes the stock an exciting pick from the current lows.
Arias Intel Corp is set to start generating revenues from its apps, expected to lead to cash flows in the near future and hence shareholder value. Integration of the blockchain technology into the company’s operation is another aspect that further affirms the company’s long-term prospects.
While the stock is still trading in a downtrend, a recent spike supported by solid fundamentals should strengthen investors’ confidence going forward.
Disclosure: We have no position in ASNT and have not been compensated for this article.