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On The Move Systems Corp (OTCMKTS:OMVS) Making Big Moves

On The Move Systems Corp (OTCMKTS:OMVS) Making Big Moves
Written by
Jarrod Wesson
Published on
May 8, 2017
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On the Move Systems Corp. (OTCMKTS:OMVS), the American transportation services company, very recently came into play after the company put out a press release mentioning the discussions with Robotic Assistance Devices ("RAD") (www.roboticassistancedevices.com) for a potential strategic transaction. The news along with the information about the target excited investors, who acquired a large amount of shares and seem to be waiting for other market participants to understand the market potential of the news.In this article, we will provide information about "RAD" necessary to understand the transaction as well as some background information about the buyer; OMVS.OMVS and RAD togetherOn the Move Systems Corp. was incorporated in Nevada on March 25, 2010. The company is headquartered in Henderson, Nevada. OMVS disclosed in its annual report that it is currently "exploring the on-demand logistics market by developing a network of logistics partnerships". More specifically, its business focus is on transportation-related technology services. That is the way a lawyer would explain it. In plain words, OMVS is creating a shared economy network of trucking partnerships. Do you know Uber? We are sure that you know. Well, this is the truck version. If you appreciate the business initiative, we will explain later how the company is financing its operations and the type of securities that investors have bought so far. This is, like Uber, a start-up firm, so early investors should know all the equity and debt financing details.According to its website, Robotic Assistance Devices is an artificial intelligence company and robotic solutions provider. The company is intended to provide robots to streamline operations by improving the patrolling and guard services so that client's personnel can focus on other more strategic tasks. How does RAD offer this service? By its fully autonomous robotic guard. The product is called S5 Robotic Guard. Have a look at it:SourceWe believe that the robot is best described by the company on its website:

"The S5 Robotic Guard from Robotic Assistance Devices and SMP Robotics is a fully autonomous unmanned ground vehicle that incorporates advanced intelligence to augment traditional patrolling services by detecting outdoor activity, including humans and vehicles. It operates up to 12 hours without recharging and continuously monitors in any weather environment, including rain, snow, gusty wind, and temperatures ranging from -7° F to 110° F. It incorporates automatic obstacle avoidance sensors, two-way audio, panic button and on-board panoramic video surveillance to increase situational awareness. It integrates with leading video management solutions, including Milestone, and supports other business systems for special equipment, sensor integration and advanced software development. Data is captured and stored in the cloud for long-term data and video retention. "Source

This is all great, but how is this going to help OMVS's business? We believe that if both companies merge, RAD may become another division inside On the Move Systems Corp. Some synergies may be derived from the activity of both companies. The technology of RAD may help the client base of OMVS, truck drivers. This is a key important point for RAD. But, it is not only that. OMVS obtains financing from the financial markets since its shares are listed. Seems like a great deal. Let's see the most recent press releases put out by RAD and OMVS.Recent DevelopmentsThe discussions between both companies were put out on April 20, 2017. The information in that press release was limited. We know that the transaction may be very beneficial for both parties, but no information was given about the price or the conditions of the merger or partnership. On April 25, 2017, OMVS announced that RAD had received over $1M of "rental contract commitments from several clients through its distribution network". Additionally, it was noted that RAD expects to obtain upwards of $8 million EBITDA by the end of 2018. Traders reacted by buying OMVS. Furthermore, on May 1, 2017, it was noted in a press release that the Robotic Assistance Devices' (RAD) robot was recently showcased in the NVIDIA booth at the ISC West Las Vegas Show. NVIDIA and RAD are collaborating to show NVIDIA's Jetson chip capabilities. We selected the following words of Steve Reinharz, Founder and CEO of RAD:

"By using the NVIDIA Jetson embedded platform, we can develop smarter autonomous robots that can learn from the environment around them to navigate safely, as well as identify and classify objects of interest, including cars and people. This innovation marks the next generation of robotics." Source

In our opinion, the fact that RAD is able to partner with other players in the chip industry is very positive. These partners bring product visibility to RAD and also show that the technology is relevant enough to help other technology providers.How have investors financed OMVS?Investors provided money in the form of convertible debt and warrants as well as shares. They made use of these interesting investment tools, which receive payments from time to time, and are also convertible to shares. As of November 30, 2016, some of the convertible notes payable received had the following features:

Issued

Maturity

Interest

Rate

Conversion

Rate per

Share

Amount

of Note

Original

Issue

Discount

Beneficial

Conversion

Feature

March 22, 2016March 22, 2017

5%

$

49% discount

$

40,000

$

6,500

$

May 31, 2016May 31, 2019

10%

60% discount

35,100

35,100

July 18, 2016July 18, 2017

8%

49% discount

9,000

2,000

August 30, 2016August 30, 2017

8%

50% discount

25,000

September 6, 2016August 30, 2017

8%

50% discount

31,320

6,320

Total$

140,420

$

14,820

$

35,100

SourceWe only showed a small amount of convertible notes that the company could sell. The full list of securities can be found here.ConclusionTraders seem to appreciate the strategic transaction that OMVS and RAD announced, as volume and the share price spiked following the announcement. Additionally, investors seem to appreciate the technology brought by RAD, as traders are buying more shares of OMVS as more details emerge. Furthermore, we saw that OMVS has a great ability to obtain financing with close to $1.4 million in the form of convertible notes, warrants and shares. To sum up, there is a lot to like in the way OMVS's managers are doing things and the market is liking the company's progress. We will be updating our subscribers as soon as we know more. For the latest updates on OMVS, sign up below!Disclosure: We have no position in OMVS and have not been compensated for this article.

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