After On4 Communications Inc. (OTC:$ONCI) announced a string of new deals, shares in the company fell 3.13%. Despite this, the company believes that the new deal could strengthen its revenue base.
On4 Communications massive Wednesday sell-off has raised concerns about the future for the firm. They have been struggling to hold onto the $0.02 per share mark, and has since dropped $0.01.
However, if the uptrend continues, the stock could still go up by as much as 50%.
The sell-off has proven surprising for some investors. The company has been aggressively pursuing new deals that could lead to more revenue generation. The firm is planning to negotiate the price for 10,000 or more units during their second meeting with QVC.
CEO, Steve Berman, said, “We are also excited to announce that we have signed Gunther Motors with brands including VW (OTC:$VLKPF), 2 dealerships, Mazda (OTC:$MZDAF) and Kia (OTC:$KIMTF). They have taken 90 units per month at $200 for $18,000 per month and a total $216,000 per year. Gunther is one of the largest VW dealers in the country.”
The company is also looking to expand its international footprint after the signing of a pilot program with a large Middle Eastern taxi fleet. This will give the company 10,000 taxis, spread over 4 different countries. The initial order of 500 units will total $100,000, or $200 per unit.
Recently, the firm also set up 3 additional meetings at the Dubai auto show. The Chief Executive also plans to travel to Malaysia to hold meetings with cell phone companies.
“We are also proud to announce that we will be starting our targeted Facebook campaign with Fly Communications to begin next week. We are expecting to drive a lot of traffic to our Bsafe Mobile website,” said Berman.
Finally, On4 has removed $1.8 million in long-term debt, with plans to reinvest all the next phase revenue back into the company.
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