After our recent article about Appiphany Technologies Holdings Corp (OTCMKTS:APHD) named “Appiphany Technologies Holdings Corp (OTCMKTS:APHD) Making A Comeback“, the share price continued creeping up. The article was published on August 31, 2017 when the shares were being traded at $0.018. A few days later, the share price increased to touch the level of $0.03, for gains of 66.67%.
Is there any new information?
That is the interesting thing, as the company did not release any news. Nothing new was found on Google News, Yahoo Finance nor on the company’s website. This made our work tough, as we could not understand what was going on. We had to dig a little deeper on the internet to understand what was going on. In this piece, we will provide our discovery.
APHD provides intellectual property protection to other companies and individuals through three products: “Watchdog Protect”,“Watchdog Locate”, and “Watchdog Web”. More specifically, the company uses online monitoring solutions to identify intellectual property infringements that damage the client’s brand. According to the company’s website, the software developed searched across 25 major commerce platforms. Have a look at them:
Recent Developments – What did we find?
With the help of forum contributors on the ihub website, we could obtain more information about Modevity, LLC; the company that APHD is said to be acquiring. For those who did not have the time to read our previous article, this is what you need to know. The company noted a Letter of Intent, under which the company intended to acquire the technology, sales assets, and customers of Modevitys enterprise cloud-based data storage, protection and workflow automation platform, ARALOC.
In our previous article, we tried to obtain more information about ARALOC, as the acquisition created a large share price reaction, but we did not find much. We said to our readers that they should be alert on the company’s announcement, as more information would be a catalyst for the stock:
“Once the contract is signed and announced, the share price could move quite a bit, so we encourage readers to follow closely every announcement made by the company. It will be a great catalyst for the stock.” Source: Appiphany Technologies Holdings Corp (OTCMKTS:APHD) Making A Comeback
A few days ago we found extensive due diligence. Readers can find it here and here. The most relevant information is this website, wherein it is stated that Modevity is a company obtaining $6 million in revenues and 30 employees. On the top of it, it was founded in 2004 and is said to have 40 years of industry experience in software, content management, and product development.
We checked Modevity’s website and we found that it seems to know very well what it is doing. The website states that the following serious companies trust its software. This is key, as it means that it has a skilled team of software engineers:
Finally, we believe that the fact that ARALOC provides several certifications needed for several industries shows once again that the company will be a beneficial acquisition:
How will APHD pay for Modevity LLC?
Ihub is saying that the company may be acquired using stock. We agree with that assessment, but we believe that we need to wait for the definitive acquisition agreement to get this detail. As we said in our previous article, the company is changing its name and increasing the amount of authorized shares. Given these facts, it is fair to believe that the company is preparing for the acquisition, but again until we get the acquisition announcement, everything else seems quite speculative.
Shareholder Structure and Float
When there is a large amount of volatility, like in this case, it is relevant to check the amount of shares owned by the public, which is the float. The following is the information given by the OTC Markets. As of September 5, 2017, the market capitalization is $1,154,780. There are 349,933,465 outstanding shares and in the float is 289,449,340 shares. Thus, we believe that the shares are thinly traded, and big buy orders may be causing large share price increases. That could explain the recent share price jumps.
Market Reaction and Conclusion
APHD seems to continue its upward trend that the Letter of Intent initiated. In our opinion, the new highs were achieved this time as more investors investigate the target company, Modevity, LLC. Modevity is generating $6 million in revenues and will fit in well with APHD. Additionally, the fact that APHD recently decided to change its name and increase the total authorized shares are also good signs. However, in any case, we need to wait until the two companies announce a definitive agreement. To sum up, be alert on the next announcements as we expect this bull run to continue.
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Disclosure: We have no position in APHD and have not been compensated for this article.