DealNet Capital Corp. (DLS:TSXV) is an emerging Venture company and, in its own words, “provide(s) financing and communication solutions for key market verticals.” While a tad unspecific, the company has revenue and has been inking various deals for months.
Its shares were up 12.5% Friday to $0.99 per share, after touching an all-time high of $1.02 per share.
Key fact: On August 18, 2015, the Company completed a private placement of 30,000,000 units at a price of $0.40 per Unit. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant with an exercise price of $0.50.
It is important to remember these 30 million shares will come free trading in late-December.
DealNet Capital sees revenues increase
DealNet Capital has two main divisions: Consumer Engagement and Consumer Lending.
According to the company’s website, its Consumer Engagement division allows corporate clients to interact with their customers the way customers want to be spoken to, via live voice, chat, text, email and proximity based engagement solutions.
In respect to DealNet Capital’s consumer lending solutions, the company leverages engagement offerings to provide a full suite of services to home improvement dealers including underwriting and lending solutions to their customers. The company states that:
“We provide complementary loan and lease programs that allow dealers to ‘close the deal at the door’ on our contracts, allowing us to benefit from long term income streams and securitization opportunities.”
Revenue attracts interest on TSX Venture
Like other companies gaining notoriety and traction on the TSX Venture, DealNet is growing its revenue. The company reported revenue of $6,178,000 for the six months ended June 30th, 2015, and $3,855,000 for the comparable period in 2014. Gross profit for the six months ending June 30th, 2015, was $2,705,000. Any time a company has margins in the neighborhood of 50% it warrants a closer look.
Despite the company’s growth in revenue and gross profit, it still reported a net loss of $3,534,000 million for the six months ending June 30th, 2015. Selling and administrative expenses alone, totaled $5,317,000.
It is easy to look at a few numbers and miss the big picture, check out the company’s Q2 financials, by clicking here.
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On April 15, 2015, DealNet Capital announced that its mobile engagement subsidiary, Impact Mobile, has signed an agreement with the Jim Pattison Broadcast Group’s Edmonton radio stations.
The company reported that:
“The agreement will provide JPBG’s radio stations the ability to “chat” with listeners via SMS, and to interact using contests, voting, and other mobile engagement techniques.”
Click here to read the entire press release.
This is an example of the type of deals the company has been closing. DealNet Capital began trading on the TSX Venture at the end of July and has hardly looked back. The company traded between $0.42 and $0.475 on July 22nd. By mid-August its shares had hit a high of $0.65 and by mid-September its shares were hitting highs in the $0.90s. This morning, DealNet touched a new all-time high of $1.02 per share.
DealNet Capital – 3 Month Chart
DealNet Capital was the 15th most liquid stock on the TSX Venture at 10:39 AM EST Friday.
DealNet Capital beefs up its team
One of DealNet Capital‘s most recent material press releases came on August 26th when it announced Mr. Roy Murzello, a Consumer Lending Veteran with 15 years of experience, as its Senior Vice President of Consumer Financial Services.
Mr. Murzello has spent the last 10 years as a Senior Leader at one of Canada’s largest providers of HVAC finance solutions. The company reported that:
“In this role, he also led a large leasing business that was acquired and subsequently integrated into the core business. His prior experience includes Vice President for Citi Group managing a major credit card initiative, a Senior Underwriter Manager at GE Capital and Credit Manager at CIBC.”
Click here to read the entire press release.
Michael Hilmer, Chief Executive Officer of DealNet, commented that, “Roy’s pedigree is synonymous with large scale finance book management and risk mitigation. His experience with acquiring and operating large scale finance books, underpinned by strong governance and risk management fits our growth plans perfectly.”
Click here to read the entire press release.
DealNet Capital is growing its business and its revenues. This is something unique on an exchange that has seen speculative junior resource stocks dominate its weighting for years. DealNet Capital represents new blood on the TSX Venture and will continue to generate interest as it builds out its client base in the U.S. and Canada.
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