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TOWER ONE WIRELESS COM NPV (OTCMKTS:TOWTF) Making Big Moves

TOWER ONE WIRELESS COM NPV (OTCMKTS:TOWTF) Making Big Moves
Written by
Jarrod Wesson
Published on
June 29, 2017
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TOWER ONE WIRELESS COM NPV (OTCMKTS:TOWTF), the cellular network infrastructure operator, is on fire. The company has put out exciting news that include an update about how its Argentinean subsidiary is exceeding expectations, a letter of intent with a major mobile operator, the construction of 10 new towers in Colombia, and a new anti-dilution early warrant exercise program. Interestingly, all these announcements were put out in less than a month. Check the volume as well as the share price spike in June. Almost 2 million shares were exchanged on some days.SourceBusinessTOWTF is a Canadian corporation. Its business strategy, according to its annual report, is "building cellular towers in municipalities where there currently is very limited or no cellular coverage, which enhances the probability of multiple carriers sharing the tower and minimizes competitive risk." The company’s revenues are mainly derived from leasing its infrastructure to other companies in South America. The following is a video created by the company's communication department found on the company's website.https://youtu.be/T1dOGKGxfWcSourceRecent DevelopmentsLet's rapidly check the latest announcements. After all, that's what moved the share price. On June 28, 2017, the company put out that its Argentinean subsidiary had completed the construction of two towers in Argentina and is expecting to start two new towers within the next 30 days. Additionally, it was put out that the first tower in Argentina had been leased to a mobile network operator. Alex Ochoa, CEO of TOWTF, celebrated the work of its subsidiary with the following words:

“This reflects the planned roll-out of our development goals in Argentina. Our subsidiary is meeting and exceeding our expectations which bodes well for the future success of Tower One and becoming profitable.” Source

On the top of it, mobile network operators are trying to sign agreements with the company. This is the impression that we got from the press release put out on June 22, 2017. On that date, it was put out that a major mobile network operator in Argentina had signed a letter of intent for a master lease agreement with the company. The agreement could be very beneficial for TOWTF. This was mentioned in the press release:

"The LOI grants Tower One’s subsidiary 50 search ring areas, which provides for major site acquisition and tower construction expansion opportunities. Once signed, the MLA will make Tower One’s subsidiary a national provider of cell towers to this MNO. " Source

In addition, on June 19, 2017, the company noted that another mobile network operator had given its approval to launch the construction of ten new towers in Colombia. The construction was planned to start within 30 days. The CEO included the following words in the press release:

"I am very pleased with the significant developments we have achieved in a short period of time. This is testament to the country expertise and reputation that our senior management team has in Colombia, resulting from their track record of success in the Colombia tower industry. I expect that the Company will be able to achieve strong growth both through tower builds and the acquisition of existing tower portfolios over the next year." Source

In addition, it was remarked that the company had been selected to be part of the CSE Composite Index. For those who don't know what it is, let us cite the Canadian Securities Exchange:

"The CSE Composite Index is a broad indicator of market activity for the Canadian Securities Exchange (CSE). With approximately 75% coverage of all equities listed on the CSE it is a uniquely positioned gauge of the Canadian small cap market. The index provides a distinctly different risk/return profile than the broad Canadian equity market." Source

Finally, on May 30, 2017, the market got to know its expansion plans in Argentina. "Once the company has successfully built these sites, the MNO intends to issue a similar amount of BTS opportunities for July-August, resulting in a run rate of over 100 towers per year".Early warrant exercise programThese were the operating developments announced recently. But, the company made some corporate changes that the market appreciated. On June 19, 2017, the company announced that it was fighting to protect current shareholders against the potential dilution caused by warrant holders:

"(i) reduce the exercise price of the Placement Warrants, and (ii) issue additional warrants to current Placement Warrant holders in consideration of the early exercise of outstanding Placement Warrants. The exercise price of the Placement Warrants will be reduced to $0.30 if exercised during the Incentive Period." Source

What does it mean? It means that the company is trying to reduce the dilution risk for the common stockholders by pushing warrant holders to exercise if they do it sooner:

"Registered holder of Existing Warrants are encouraged to exercise their Existing Warrants in accordance with the procedures set forth below as soon as possible and, in any event, prior to 5.00p.m. (Vancouver time) on July 21, 2017 in order to take advantage of the right to acquire a common share at the reduced price of $0.30 per common share and the grant of an Incentive Warrant" Source

If warrant holders are smart, they will exercise now by paying less money for their shares. If you are a warrant holder, be sure to check that you cannot buy shares in the open market at a cheaper price than $0.30.ConclusionWe have seen how the company has put out large amount of news marking the good performance of its subsidiaries in South America. The company is exceeding expectations in Argentina by signing new agreements with major mobile network operators. Additionally, TOWTF announced a new program to increase the exercise of warrants. Try to be alert on this name on July 21, 2017 and in the following days. This is the last time to exercise warrants, and the company should have communicated how the early warrant exercise program did. If you need rapid information about this and other companies, you can subscribe to our newsletter.We will be updating our subscribers as soon as we know more. For the latest updates on TOWTF, sign up below!Image courtesy of FlickrDisclosure: We have no position in TWOTF and have not been compensated for this article.

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