Voltari Corp (NASDAQ:VLTC) Waiting On Carl Icahn

The folks over at Voltari Corp (NASDAQ:VLTC) have been awfully quiet in the past year. There hasn't been a press release since March 30, 2015 when the company closed on its Rights Offering. The Rights Offering was fully subscribed and, as such, the Company issued 4,300,000 shares of its common stock for total net proceeds of $4.6 million, after fees and expenses. Following the completion of the rights offering on March 30, 2015 , entities affiliated with Mr. Carl C. Icahn, the Company’s largest stockholder, became the owner of approximately 52.3% of VLTC's common stock. Entities affiliated with Mr. Icahn also own warrants to purchase an additional 9.7% of common stock.Before that, Voltati announced its new premium mobile marketing channel. VLTC formed Emporia, the first independent and transparent mobile channel for the purchase and sale of premium publisher inventory by a select group of advertisers. Emporia participants also include industry-leading specialized data providers and the premiere hosts of rich media and video ad units. Emporia was developed in response to the largely ineffective and costly ecosystem of service and technology providers that substantially reduce publishers' share of the advertising spend while limiting the value that agencies provide to advertisers. Emporia will make use of Voltari's proprietary technology, which determines each user's real-time engagement propensity across industry verticals.The reality is that VLTC does not have much going on. Its website voltari.com just takes you to a 1 pager with the company's address and contact info. The company describes itself as the leading provider of analytics-based mobile marketing solutions. Voltari's unique ability to determine a user's real-time propensity for engagement across vertical industries enables its customers to plan, manage and learn from their digital marketing efforts in order to efficiently and effectively respond to the evolving needs and desires of consumers in a personalized and localized manner. Voltari's technology, expertise and unique go-to-market approach continually deliver higher ROI for its customers while remaining respectful of consumer privacy and compliance with all relevant privacy statutes.Last January, VLTC significantly reduced the size of its engineering department and terminated operations at its Seattle Data Center as part of an effort to reduce operating expenses, particularly the cost of research and development and advertising delivery. As a result VLTC is making increased use of third-party vendors in the placement of mobile advertising and exploring with those vendors additional service offerings including the placement of advertising on desktop computers, so-called smart TV’s and other non-mobile devices.

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Right now, everyone, including Volatari itself, is waiting on Carl Icahn to decide what he wants to do with the company. The company's only real value is its net operating loss carry forwards. As of December 31, 2014 , VLTC had federal and state NOLs of $410.3 million and $67.5 million, respectively, that begin to expire in 2019 for U.S. federal income tax purposes and in the current year for state income tax purposes. This translates to $187 million in deferred tax assets, which are fully offset by a valuation allowance, because management estimates that the realization of these benefits cannot be reasonably assured before they expire.Carl Icahn needs to find a buyer before these NOLs expire, or at least merge with another company that can use the NOLs. That is how he can create value for himself and existing shareholders. VLTC's technology can then be sold off to a willing buyer and everyone can move on. This is what's in the best interests of everyone involved.

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Currently trading at just a $35 million valuation, VLTC looks to be an undervalued situation. Its NOLs and existing business are certainly worth more on the open market. All it takes is Carl Icahn getting around to realizing this and making it happen. While a man that does deals worth billions most likely does not have much time for a deal this small, we think he'll get around to making something happen before the NOLs expire. Existing shareholders just need to be patient. We will be updating Insider Financial as soon as we know more on VLTC. Be sure to subscribe to Insider Financial and get our latest alerts.

Disclosure: We have no position in VLTC either long or short. We have not been compensated for this article.