QIS Update #20 2013 - September 10th 2013
Included in this update:
- Blackbird Energy announces agreement to purchase two sections in SE Saskatchewan
- Virtutone Networks announces the sale of its retail division, hires corp. development advisor
As mentioned in our last update, the next date and location for The Small-Cap Conference is set for November 12, 2013 in Vancouver. We currently have about half of our presentation times filled and we are looking for another 3-4 presenting companies. If you have a company that wants to participate please contact us as soon as possible to reserve the best speaking times.
Registration is now open and investors can sign up to attend the event at www.smallcapconference.ca. Alternatively, you can email us to sign up at email@example.com. As always, it is free to attend for investors and some refreshments will be provided.
Please feel free to email us anytime at firstname.lastname@example.org or call us at (250) 377-1182. We look forward to your comments, questions, and feedback.
Blackbird Energy Inc. (BBI:TSX-V)
Current Price: $0.095 (coverage commenced Aug 19/11 - $0.18)
Blackbird Energy Inc. has announced a proposed acquisition of certain oil and gas assets through its wholly-owned subsidiary, Ruger Energy Inc., for total cash consideration of $52,000. The vendor of the assets, which consist of two sections of Petroleum & Natural Gas Rights comprising a total of 1,280 acres located in Bromhead in South East Saskatchewan (the Bromhead Project), is Weyburn Energy Ltd.
The acquisition will provide Blackbird with a 100% working interest in two sections at an average cost of $26,000 per section, subject to a 6% non-convertible Gross Overriding Royalty (GORR) with a maximum of 25% deductions in favour of Weybum and a 2% GORR in favour of Ralco Ventures. The acquisition is expected to close on October 1, 2013.
Garth Braun, President and CEO of Blackbird stated, The Bromhead Project is located two miles west of an existing Midale oil pool that has produced in excess of 2.3 million barrels of light oil and south of the Weyburn Field that has produced approximately one billion barrels of light oil. The Blackbird team once again is focused on establishing the Midale oil play through two low cost re-entries, with each re-entry currently estimated to cost $250,000 to re-enter, complete and equip.
QIS Capital: Blackbird is aggressively pursuing several new and exciting core areas in SE and Central Saskatchewan. The company has assembled a large land position and has a significant portfolio of drilling targets contingent upon initial drilling success. Blackbird has also recently updated its powerpoint presention which is available on the company’s website at www.blackbirdenergyinc.com
Virtutone Networks Inc. (VFX:TSX-V)
Current Price: $0.26 (coverage commenced Sep. 9/11 - $0.10)
Virtutone Networks Inc. has announced the sale of its retail division to ComCanada Communications Inc.
The effective date of the sale is September 1, 2013. ComCanada is a private telecommunications company based in Vancouver, British Columbia. Over the next 90 days, Virtutone will work with ComCanada to transition its retail client base, with no interruption to service.
With the rapid growth of our wholesale division, we have decided to put all of our focus there said Jason Allen, Chief Executive Officer of Virtutone. ComCanada is a very solid and reputable carrier who specializes in hosted PBX for business. They have also been a supplier of ours for several years. This sale will allow us to reduce overhead and costs, further streamlining our business.
We are excited to welcome Virtutone’s retail clients on to our network and are looking forward to working with them for many years to come. Hosted PBX is our primary focus, which makes this acquisition a perfect fit for us. said Rick Orford, Chief Executive Officer of ComCanada.
Virtutone Networks Inc. has announced that the company has contracted with Newcoast Capital Corp. and its President Kirk Exner as Corporate Development Advisor.
An experienced public markets venture capital professional, Kirk has provided venture capital investment, corporate finance and advisory services to publicly listed companies since 1999. Prior to Newcoast Capital, Kirk served as a corporate finance analyst at a Canadian brokerage firm in Vancouver. Kirk holds a B.Sc. degree from the University of British Columbia and an MBA from York University.
We are happy to have Kirk onboard, to assist with corporate development for the company said Jason Allen, Chief Executive Officer of Virtutone.His main focus will be to maximize shareholder value by supporting our capital markets program by working closely with corporate finance and brokerage firms in Canada and Europe and assisting with our M&A strategy.
QIS Capital: With the sale of the company’s retail division, Virtutone has transitioned to a company focused on its wholesale origination services in North America and Internationally. The company’s wholesale revenue has grown from under $1 million per month in March 2013 to over $4 million per month in August 2013. This represents a 5 month revenue growth rate of over 400%. The company is currently valued at $5.7 million or 0.12 times annualized revenue (using last month’s sales number).
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 616,500 shares of Blackbird Energy Inc. and 897,500 shares of Virtutone Networks Inc. QIS Capital has a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2013 QIS Capital Corporation.