On4 Communications Inc. (OTCMKTS:ONCI)
On4 Communications Inc.(OTCMKTS:ONCI) gained 12.8% after announcing a new contract with a middle eastern company with a fleet of 7,500 cars. Delivery for the 3,000 units are to begin in January.
Auto Dealership Deals
The $600,000 contract builds on a string of new deals that the company has signed in recent weeks as it continues to expand its network in the auto industry. The deals have helped strengthen investor confidence in the company’s long-term prospects.
The multinational company will be taking 750 units a month for 4 months, beginning January 2018. This should result in monthly revenues of $150,000 for On4 Communications Inc. (OTCMKTS:ONCI). The client has also left the door open for the purchase of an additional 4,500 units upon fulfillment of the first order.
ONCI stock is up by more than 40% for the year as investors react to the company’s push for growth opportunities in the auto industry. However, the stock has taken a hit in recent trading sessions, triggering sell-off that has resulted in a drop from this year highs of $0.02 a share. Despite the pullback, ON4 Communications continues to trade in an uptrend.
In addition to a deal with a multinational Middle Eastern company, On4 Communications Inc. (OTCMKTS:ONCI) has inked a contract with a market group with access to 450 dealers across seven states in the U.S.
“This group will be selling Bsafe Mobile and Bfound mobile into its dealer network. This adds approximately 450 prospective clients to the Bsafe Family. These types of deals expand our reach to get more products into the pipeline. More revenue contracts and updates on 2 of our beta apps later this week,” said CEO Steve Berman.
The company has also set up 3 additional meetings at the Dubai Auto Show where it hopes to ink deals with companies with a fleet of over 5,000 vehicles.
Separately, On4 Communications Inc. (OTCMKTS:ONCI) has confirmed the removal of $1.8 million debt from its books. The holding company says it settled the debt for $0.33 cents on the dollar, marking an important milestone in the company’s debt removal plan. Removal of debt will allow the company to reinvest revenues generated to accelerate bottom line growth
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
Don’t miss out! Stay informed on $ONCI and receive breaking news on other hot stocks by signing up for our free newsletter!