On The Move Systems Corp (OTCMKTS:OMVS)
On The Move Systems Corp (OTCMKTS:OMVS) was up by 17.5% in Thursday’s trading session after announcing the completion of due diligence on privately-held Robotic Assistance Device (RAD) ahead of a proposed merger. The transaction should be complete by August 10, 2017, as the company moves to file the required disclosures documents and financial statements.
On The Move Systems Corp (OTCMKTS:OMVS) will issue 3, 350,000 shares of its Series E Preferred Stock in exchange of RAD equity as part of the merger agreement. The company will also issue 2,450 shares of Series F Stock. The Company has also agreed to retain the current CEO and Director Garett Parsons.
Robotic Assistance Device specializes in artificial intelligence and robotic solutions. The company’s solutions are currently being used in the security industry for operations and monitoring purposes. RAD’s robotic unit is fully autonomous and designed to perform 80% of all tasks that security guards perform but at almost half the cost.
In addition to targeting the security industry, RAD plans to deploy its robots to end users having already received commitments for 15 robots worth $1.5 million. The company’s sales pipeline currently boasts of over 50 fortune 500 companies in addition to 25 dealers and distributors.
“We are looking forward to completing the acquisition with On The Move Systems Corp (OTCMKTS:OMVS). We are confident that the combined teams of RAD and OMVS will lead to a very fruitful and successful partnership,” said Steve Reinharz President and CEO.
On The Move Systems Corp (OTCMKTS:OMVS) continues to expand its footprint having recently signed an agreement for a paid proof-of-concept with a major North American Utility. The proof-of-concept, scheduled to last for 20 days, requires RAD to deploy a robot at the utility.
The proof-of-concept could lead to additional orders should the firm feel satisfied by the robot’s capabilities. This builds on a similar agreement with a major green utility that requires the company to deploy one of its robots for 90 days
Robotic Advance Systems is currently in discussion with a major distribution partner as it looks to strengthen its sales channel in North America. The distribution partner currently manages tens of thousands of security guards and clients. Based on the way talks are going, the company remains confident of signing an agreement in approximately 30 days.
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.
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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.