DSGT is making a major move up the charts after paying off ALL convertible notes and ending the dilution cycle. As anyone that trades pennies for a living know, convertible notes and dilution are the Grim Reaper of Pennies. Shorts we can squeeze, but nothing can stop the share printing press. This is why so many penny stocks die.
Now shareholders don’t have to worry about this happening to DSGT. Shares rocketed 192% on the news and on the back of massive volume – 82 million shares traded. What’s even more impressive is that there are only 60 million shares outstanding. This means the day traders and hedge fund algorithms were buying and selling. This spells good news for much, much higher prices over the next coming days and weeks.
In this article, we take a look at the bullish case for DSGT and why a run back to the highs is not out of the question. As you can see from the chart below, it wasn’t long ago that DSGT was trading above $1.50 a share.
First up, here’s a little background info for those not familiar with DSGT. DSG Global Inc is one of the new breeds of Software-as-a-Service (SaaS) companies that are dominating the IT industry.
DSG has created a wholly-owned subsidiary called VANTAGE TAG SYSTEMS INC. that now provides electronic tracking systems, fleet management solutions, mobile digital data, and the new lineup of VANTAGE GOLF products.
Vantage Tag Systems provides patented electronic tracking systems and fleet management solutions to golf courses and other avenues that allow for remote management of the course’s fleet of golf carts, turf equipment, and utility vehicles. Its clients use VTS’s unique technology to significantly reduce operational costs, improve the efficiency plus profitability of their fleet operations, increase safety, and enhance customer satisfaction.
VTS has grown to become a leader in the category of Fleet Management in the golf industry, with its technology installed in vehicles worldwide. VTS is now branching into several new streams of revenue, through programmatic advertising, licensing, and distribution, as well as expanding into Commercial Fleet Management, PACER single rider golf carts, and Agricultural applications.
No More Convertible Notes
On September 22nd, DSGT repaid and satisfied existing convertible notes that had become due and convertible into common stock at a significant discount to the market. As a result of the full payment of the Notes, the Notes are no longer a debt obligation of the Company and, as such, are no longer convertible into shares of the Company’s common stock. Bob Silzer, President and CEO DSG Global, said:
“Eliminating these convertible notes represents a significant milestone for DSG Global as now for the first time in two years we are not encumbered by structured financing. Now that the share count is stabilized, we believe we will see a more appropriate valuation in the marketplace. Given our outlook for strong growth across multiple sales channels and the rapidly improving fundamentals of our business, we are now in a position where we will no longer need to fund the company though toxic convertible debt.”
DSGT will begin by delivering two containers (approximately seventy carts) in October with a continuous order flow expected to be placed during the remainder of the year. All PACER’s come equipped with Vantage 4G Tag and the majority will be outfitted with the INFINITY, generating cash flow through the programmatic advertising program. This order alone will generate around $15 million in annual revenues.
Imperium and EV Express
Last month, DSGT announced that Imperium and EV Express plan to develop and market electric vehicles, electric vehicle fast-charging stations and advanced battery technology. The companies will create a business model with increasing recurring revenue, a diversified customer base, and significant global reach and should result in the creation of a family of EV fast-charging products and electric vehicles software and technology with comprehensive products and services capabilities.
EV Express is a proven technology with charging stations currently in use and a grant for more stations already approved. It is expected that hundreds of additional stations will be installed in California and other states in the near future. The developer of the technology, Dr. Lloyd Tran, is a former scientist for NASA and is working on the development of additional battery technologies.
Imperium Motor Company is a wholly-owned subsidiary of DSG Global.
DSGT Electric Vehicle Experience Center
Imperium Motor Company is set to open its Electric Vehicle “Experience Center.”. The Center has been moved approximately 12 miles south from Vacaville to its new location on Central Way in the popular Cordelia Junction in Fairfield, CA. This move will offer a better location for distributors and customers alike.
In order to handle the strong current and future demand of the Jonway line of Electric Vehicles, Imperium Motors upgraded to a much newer facility that is nearly 70% larger. The new electric vehicles will offer a more attractive cost alternative to what now exists in the US, with emphasis on great design, performance, and functionality. The Center will still be located between two of the largest EV markets in California which account for over 50 % of all EV sales in the United States.
DSGT and Jonway Auto
Imperium Motors has the exclusive distribution rights for Jonway vehicles in North America and Mexico. Jonway Automotive has recently completed the purchase of a new assembly plant located in the city of Xuzhou, China.
The facility will produce new vehicles for Imperium Motor Company in the United States, Mexico, and Caribbean. Along with other production vehicles, two newly designed models will also be built in the new Jonway plant. One of these will be a new Low-Speed SUV Style Vehicle model and the other an affordable High-Speed vehicle.
The new facility sits on over 3.2 million square feet of property with a new production plant already built. This will be expanded to over 635,000 square feet when finished. By comparison, the Dodge Conner Avenue Assembly plant in Detroit is approximately 400,000 square feet.
Jonway is a leading supplier of affordable Electric Vehicles in Asia and Europe and soon in North America via their exclusive distribution partner Imperium Motor, a division of DSG Global. Along with assembling new vehicles, the facility will also be able to provide Semi Knock Down Kits that can be finally assembled in their prospective markets. This will be Jonway’s third manufacturing plant.
Now that DSGT has fully paid off all convertible notes, that overhang is no longer there. DSGT is now a pure-play on electric vehicles trading under $1. We know of no other pure-play EV stock trading under $1. We have seen the moves this year in Tesla, NIO, Workhorse, and Lordstown, DSGT looks to be the next EV rocket.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in OTCMKTS:DSGT or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.