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Infrax Systems Inc (OTCMKTS:IFXY) Gets A Bump From HempTech Corp (OTCMKTS:HTCO)

Infrax Systems Inc (OTCMKTS:IFXY) Gets A Bump From HempTech Corp (OTCMKTS:HTCO)
Written by
Jarrod Wesson
Published on
November 3, 2017
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There is a new profile that we have been following for a while. It is called Infrax Systems Inc. (OTCMKTS:IFXY), which provides Wireline, Wireless, and Fiber Optics network management solutions. IFXY Logo from http://www.infraxinc.comWe became interested in the stock after seeing the impressive volume registered recently. Some days almost 2 billion shares changed hands. Have a look at it: 4 years stock for IFXY 10 days chart for IFXYBusinessThe company was founded in Nevada on October 22, 2004. The business activity of the company is the following:

"Our Wireline, Wireless and Fiber Optics network management solutions offer proprietary state-of-the-art software, professional services and integrated systems." Source

IFXY seems to have accumulated large amount of expertise in managing other company's networks. It has been providing these services for the last 10 years.We appreciate this fact. Several services are provided; threat detection, fault isolation, delivery of information, physical and logical layer management, and others included in the company's website.Have a look at the following video. It helps explain the company's business:

In our opinion, the key element in the business is the scalability of the company's software. IFXY is able to target large utilities and telecom companies as well as more medium-sized companies.Growth driven by acquisitionsIn 2010, it acquired the assets and management of Trimax Wireless Systems, Inc. This company was said to provide "an operating platform and enhanced operating effectiveness to the Secure Intelligent Energy Platform."In 2011, it acquired 70% controlling interest in Lockwood Technology Corporation. From that time, the company is able to supply RFID and asset tracking, among other technologies.We need to be alert on new acquisition announcements, as theoretically they should make the share price increase. Market participants know very well that they usually increase revenues and make the company grow.What may be going on?The team expended a long time in figuring out what may be going on with IFXY. It has not released any announcement recently that could push up the share price, thus we had to conduct deeper research to understand.We found out in the last annual report that the company acquired a big stake in HempTech Corp. (OTCMKTS:HTCO).Have a look at it:Assets June 30, 2016 June 30, 2015 Current assets Cash$114$274Accounts receivable-Inventory6,2006,200Loan receivable from affiliate-Total current assets6,3146,474Property & equipment, net02,160Intangible property, net0239,963Investment in HempTech Corp 752,595 -Total Assets$758,910$248,597SourceThe company acquired $752,595 in shares of HTCO last year. Well, now have a look at what happened recently with the shares of this marijuana company.As the stock chart shows, the trading volume has increased quite a bit in 2017. More than 40 thousands shares have changed hands in some periods of time. The key to understand this astonishing increase in demand is to assess the sector in which the company operates. 5 years stock chart for HTCOHTCO provides technological tools that allow cultivators to "grow, securely collect, and analyze every aspect of a horticultural operation." Products include:

  • Grow.droid: it is a self-contained fully-automated platform engineered for growing cannabis.
  • CognetiX™: it is a suite of software solutions that integrates all available plant and business data into a high performance, real-time, and distributed grow control platform.
  • Mithra™: this series is a powerful LED lighting technology, which helps in growing cannabis.
  • GrowCOMMTM: it is a division of the company focused on engineering, design, and construction of industrial grade facilities for the agriculture, and cannabis markets.

Have a look at the following video. It helps show the technology being developed by HTCO:

Those readers who usually read our articles should have rapidly understood why the volume increased in 2017. In Canada and some states of the US, some forms of medical marijuana have been accepted by regulators. We believe that the demand for marijuana increased. Thus, marijuana stocks like HTCO are being pushed up.We believe that the fact that IFXY has almost 90% of its assets invested in HTCO is affecting its stock price. That's why the share price of IFXY is moving like that of HTCO.ConclusionCurrently trading with a market cap of $1.5 million, IFXY is an exciting story among small caps. With $0.7 million in assets, $0.7 million in total liabilities and 1,863 million shares outstanding, the company is on the move. The stock has momentum and that momentum looks set to continue.We will be updating our subscribers as soon as we know more. For the latest updates on IFXY, sign up below!Image courtesy of jb ray via FlickrDisclosure: We have no position in IFXY and have not been compensated for this article.

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