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Today's OTC Focus Is rVue Holdings Inc (OTCMKTS:RVUE)

Today's OTC Focus Is rVue Holdings Inc (OTCMKTS:RVUE)
Written by
Alex Carlson
Published on
June 21, 2016
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InsidrFinancial

rVue Holdings Inc (OTCMKTS:RVUE) has been steadily creeping up the charts as more penny stock investors become aware of this digital advertising player. RVUE remains well funded and is doing what all OTC companies should be - growing revenues and paying off convertible debts. The stock has already proven to be a winner for investors with shares up over seven fold off the March lows.RVUE describes itself as an "advertising technology company providing the digital distribution platform for the Digital Place-Based Advertising industry. The company connects approximately 1.5 million digital screens across 175 networks delivering access to 250 million daily impressions in one simple platform. Backed by the industry's most intuitive and intelligent platform, rVue has the technology, data and expertise to connect brands and targeted consumers where and when it matters most."In the first quarter, total revenue increased 111% to $220,900 from $104,600 in the prior year first quarter. The company reported a net loss for the first quarter of $619,300, an increase of 51% compared to a net loss of $411,100 in the first quarter of last year. This was due to costs associated with the payoff of the two convertible notes, including legal, loss on conversion of debt, loss on extinguishment of debt, interest expense, valuation and auditor fees. CEO Mark Pacchini said:

"As expected, the first quarter of 2016 represented a solid start to 2016, reinforcing our optimism that this will be a strong year for rVue, ultimately pushing us closer to breakeven. We are starting to see the benefits of the sales partnerships built in the second half of 2015 and being chosen as the primary or secondary sales group for a couple of networks. Importantly, we continue to expand our network partnerships and intelligence, as well as our penetration with leading advertising agencies. All this validates our long-term strategic positioning in this emerging industry, and helps move rVue closer to sustainable and accelerating growth. Interest in the Digital Out Of Home (DOOH) market continues to grow, as both agencies and brands are seeing the benefits of digital location video. Alternative advertising channels face ongoing headwinds, and this is leading to increased interest and a growing pipeline of proposals for rVue. Our recently reorganized sales organization is helping us capitalize on this trend, and both the number and size of proposals has increased significantly in the first few months of 2016. The recent infusion of capital has helped us accelerate our efforts and streamline our capital structure, helping further solidify our position."

In January, RVUE raised nearly $1.5 million to accelerate sales and marketing programs and fund technology advancements. rVue signed a Subscription Agreement with Acorn Composite Corp to raise up to $1,476,100 in gross proceeds. The company sold common stock to Acorn for total consideration of $270,000. The company also has the right to sell additional shares of common stock to Acorn on a monthly basis through September 2016, in the Company's discretion, as needed to meet the company's capital requirements. Acorn's total commitment for these purchases is $1,080,000, inclusive of the $270,000 initial investment. rVue plans to use any proceeds from these purchases to fund business operations and for other general corporate purposes.We like this deal because Acorn is an affiliate of Robert Roche, a director of the company. It goes to show you that the board has a vested interest in the success of RVUE and everything is being done out in the open and not in some back room with offshore entities. RVUE then used some of this money to retire its convertible financing arrangements outstanding with Carebourn Capital, L.P. and Typenex Co-Investment, LLC via payment of $132,356 in cash and the issuance of eight million shares of common stock. By paying off the notes, the company prevented the potential conversion of the remaining balances of each, which would have resulted in dilutive issuances of millions of additional shares of common stock.Currently trading with a market cap of $5 million, RVUE has quickly become an exciting story on the OTC Markets. It's also one that's rewarding shareholders as it continues moving up the charts. As CEO Mark Pacchini said back in April:

"The retirement of the convertible notes will streamline our capital structure and prevent further dilution for our shareholders. The Acorn financing is a vote of confidence in management and the digital place-based media industry, and we remain optimistic about our ability to grow top-line revenue and reach break-even in the months ahead."

We will be updating Insider Financial as soon as we know more. For continuing coverage on RVUE, sign up for our free newsletter today and get our next hot stock pick!Disclosure: We have no position in RVUE and have not been compensated for this article.

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