Readers interested in businesses trying to push up their stock price will appreciate our next story. VICTURA CONSTRUCTI (OTCMKTS:VICT), the holding company, has recently released a lot of right financial decisions, to which the market seems to be responding well.
We could read announcements noting three Letters of Intent to acquire new assets and companies, which should enhance the balance sheet. But, that is not all. The company has also released that it is reducing its debt and has reduced its total outstanding shares issued and outstanding by 67%.
The share price increased as a result of the new developments, which is not always the case. It has recently increased from $0.0016 to hit three-months highs of $0.0065. Furthermore, the trading volume is also remarkable. More than 40 million shares changed hands in a short period, which, in our opinion, shows market interest in the new initiatives of VICT.
Have a look at the following stock chart before we provide more details:
The company is a holding focused on strategically acquiring businesses operating in the disaster recovery and restoration construction industries. According to the company materials, it was founded on June 28, 2013, in Wyoming. As of today, VICT is based in Bedford, Texas, where it leases two offices.
We checked the website of Victura, wherein we found that the company already controls six companies:
The following are the most remarkable businesses that we identified:
- Gregg Commercial Construction Company: it is a full service commercial general contractor formed by Metroplex Home Repair Inc, DBA Gregg Construction Co, a wholly owned subsidiary, and Cherubim Builders Group.
- The Designer Lane Showroom: it provides one-stop kitchen and bathroom design and renovation quickly and efficiently. It commenced operating in this industry in 2010 in Hurst, Texas.
- Gregg Construction: it specializes in fire, water and storm restoration and reconstruction services and was founded in 1972.
The financial figures for the year 2016
The company commenced to revolt the market in November when it released its 2016 annual financial results. The revenue reported for the year was equal to $8,840,461.08, showing a decrease of 9.39% compared to $9,756,823.39 in the year 2015. The excellent point was that the company was able to decrease its expenses, which were $6,935,403.82, showing 34.26% decrease compared to $10,550,122.41 in the year 2015.
Also, it was beneficial for shareholders that the cash standing on the balance sheet was $1,761,360.60, representing an increase of 8.45% from $1,624,028.88 on December 31, 2015. Conversely, the total liabilities were equal to $3,065,673.86 on December 31, 2016, which were $2,307,369.10 on December 31, 2015.
Check out the following words of the CEO, Patrick Johnson:
“Due to the steady increasing opportunities within the insurance restoration and remodeling industry we continue along the same path of steady growth which will further enhance value for our shareholders” Source
Reduction of the total outstanding shares and debt reduction
Undoubtedly, one of the most significant business decisions was the reduction of the total shares from 272,989,421 to 90,639,023 shares. This means that every share is now worth three times more than a few years ago. According to the words of Patrick Johnson, CEO of the company, additional reductions can be expected. We will need to be alert, as they may move the share price. Check his words:
“We have decided to decrease the number of shares authorized as we believe a lower number of authorized shares and issued and outstanding will allow us to sustain a good stock price, while building a solid market cap for the company in the long term. As our share price stabilizes we will seek to make additional reductions to even further enhance Net Stock Holder Equity,” Source
Also, on December 4, 2017, the company also released the elimination of a significant amount of debt from the balance sheet. In total, $158,005.09 in debt were converted into shares, which reduced the financial risk of shareholders. For those concerned about the dangers from stock dilution, if the company can grow at a pace that outstrips the value lost through dilution, then there’s real potential for long-term return.
Growing – The acquisition of assets and companies
In the last part of 2017 and in January 2018, the market received many initiatives to increase the number of assets controlled by the holding:
- On November 28, 2017, it released a Letter of Intent to acquire Cherubim Custom Millworks, which is a Texas-based full-service architectural millwork business.
- On December 5, 2017, it also received a Letter of Intent to acquire North Texas Builders and Remodelers, a residential and business builder and service provider.
On January 4, 2018, it noted a Letter of Intent to acquire $100,000,000 in assets from NVC Fund LLC, a private equity investor in very different industries. We needed to wait very little, since it noted the acquisition of 2,045 trust units from this investor on January 12, 2018. VICT CEO, Patrick Johnson, celebrated the transaction with the following words:
“The acquisition of these AAA rated NVC Assets with convertible preferred stock is a great way to bring substantial Net Asset Value to the company’s books. The company now possess the financial backbone to enhance our business capabilities exponentially moving forward.” Source
We believe that these words of Mr. Johnson and the agreement created the market reaction noted at the beginning of the piece. We encourage readers to look for other executed deals signed with other companies. It seems that they may be an excellent catalyst for the share price.
Currently trading with a market cap of $0.6 million, VICT is an exciting story among small caps. The company has been working hard to present its most recent financial statements, to which the market has responded well. Additionally, we believe that the new letters of intent represent an excellent opportunity, not only for the company but also for the market participants. We think that if these agreements lead to a more definitive agreement, the share price could spike up.
Finally, we need to note for volatility lovers that the float is equal to only 20,111,312 shares, which is hugely reduced. This means that the share price could move quite a bit in the future. Those with expertise in volatility plays will also have an opportunity here.
To sum up, be sure to monitor the future developments of VICT; it is poised to surprise.
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Disclosure: We have no position in VICT and have not been compensated for this article.
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