Ackroo announced a massive $2 million private placement this morning. For a company the size of Ackroo (roughly $2 million in revs in 2015) this is an incredibly aggressive private placement offering. Knowing what I know about Steve Levely (CEO) and his vision for the company, I anticipate that there is a very nice acquisition opportunity on the horizon that he wants to go after, thus the need for to raise cash and boost the balance sheet.
Time will tell but I believe this raise could be THE inflection point for Ackroo for the following reasons:
- It has been suggested by many very solid investors that have a position in Ackroo that the company is one or two large investors away from being able to significantly and quickly grow. A fully subscribed private placement would show significant investor optimism for the future of the company.
- The cash raised through this acquisition could be used for the most significant acquisition to date for Ackroo…one that could propel the next leg of the company’s growth. In fact, Ackroo is an acquisition away from potentially doubling the size of the company… or more.
I was just reminded of what happened between the last Private Placement announcement and closing in late Jan 2015. The stock skyrocketed from .15 to above .60...and then the microcap market went to hell. I wouldn't be at all surprised to see this kind of move again if the PP is fully subscribed.
Stay tuned…2016 could turn out to be a very exciting year for Ackroo. With this significant cash raise Steve may finally be able to fully execute upon his vision for the company; a vision that will likely provide significant returns for the patient investor.