Those of you that follow me know that I am incredibly enthusiastic about the long-term potential for Ackroo. In my opinion this is one of those rare microcap opportunities to get into an undiscovered company (with significant recurring revenues and a very high gross margin) well before the crowd even realizes it exists. Over the course of the past year it has become more and more attractive as an investment as it has continued to hit key milestones and events that have significantly de-risked the investment thesis, yet the stock price has fallen to levels not seen in a very long time. As I mention in my previous posts on Ackroo, the market is ignoring the continued progress Ackroo is demonstrating until the company is capitalized, thus able to aggressively begin to scale its business. As I have previously suggested, I believe that the company is a cash infusion away from huge upside.
Early yesterday Ackroo announced that it has amended its payment terms with Dealer Rewards Canada ("DRC"). Again, the market is ignoring the significance of this development (and it is hugely significant!) because all investors care about right now is to see the company become capitalized again. I agree that capitalization via the open private placement is critical, but at the same time this progress is essentially creating what I consider to be a 'coil' that will spring upwards once the company announces the closing of a successful private placement.
When the company announced the news about the amended terms with DRC yesterday, they further announced that as a result of the amendment they are able to reduce the $2M private placement offering as the capital requirements of the company had been significantly lowered as a result. My opinion is that the DRC amendment will trigger significant interest from investors in the open private placement, and Ackroo will be able to get capitalized again within the coming weeks.
Stay tuned, as I believe the Ackroo story has yet to even begin and investors who are able to see the upside in the business model through both organic and inorganic growth, and take a leap of faith during this transitory period until the private placement closes, will be handsomely rewarded in the months and years ahead.