On The Move Systems Corp (OTCMKTS:OMVS) Slips On RAD Update
Shares of On The Move Systems Corp (OTCMKTS:OMVS) dropped 16.9% to $0.228 in the last session. Interestingly, the stock plunged even as On the Move Systems issued what appeared to be a positive update relating to robotic systems developer Robotic Assistance Devices, or RAD, which it is acquiring this month.
The dip in On The Move Systems Corp (OTCMKTS:OMVS)’ stock price arose from an unusually large trading volume. Nearly 6.0 million shares changed hands, substantially more than the daily average volume of 4.6 million.
Though the decline in the stock trimmed recent gains by shares of On The Move Systems Corp (OTCMKTS:OMVS), the stock is still up more than 3696% since the beginning of the year as of the close of the last session. The stock is up more than 100% over the last 12 months.
RAD adds more distributors and increases product reservations
On The Move Systems Corp (OTCMKTS:OMVS) announced via a press release that RAD had added new distributors and increased its robot reservations. RAD added two unidentified distributors to its expanding network of product distributors as it seeks to accelerate its market penetration and increase robot deployment.
In addition to adding more distributors, RAD has continued to receive product reservations. In the release, On The Move Systems Corp (OTCMKTS:OMVS) said RAD recently received an additional 22 robot reservations, thus bringing its total robot reservations to 62. These reservations have a contract value of about $6 million. By reaching the milestone of 62 robot reservations, RAD has surpassed its target of 60 reservations by end of summer.
RAD’s CEO Steve Reinharz was quoted in the release as say the following:
“By leveraging our own network and that of our distributors, we expect to be able to penetrate the market in a fast and efficient manner as we strive to capture a significant portion of our marketplace.”
Acquisition of RAD
On The Move Systems Corp (OTCMKTS:OMVS) agreed in May to acquire RAD. The deal was expected to close before August 10. On the Move Systems is a provider mobile electronic services. The company states on its website that its focus includes developing online, app-based trucking service with nationwide coverage.
RAD, on the other hand, is a privately funded automation robotic solutions provider that says it works to help organizations to streamline their operations, increase return on investment and strengthen safety. RAD counts San Francisco-based SMP Robotics among its partners.
By adding RAD to its portfolio, On The Move Systems Corp (OTCMKTS:OMVS) is hoping to bolster its competition in transportation and services industry.
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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.