BEW.TO - BeWhere Holdings

[matthewd98]

Company name: BeWhere Holdings

Stock symbol: TSXV: BEW / OTCQB: BEWFF

Stock price: CAD$0.32

Shares outstanding: 51.5M

Market cap: $16.11M

Basic insider ownership: ~36%

Forward 2018 P/S: 3.75x

Forward 2018 P/E: 25x

 

 

Intro:

 

BeWhere is an Industrial Internet of Things ("IIoT") solutions company that designs and manufactures hardware with sensors and software applications to track real-time information on movable assets. It was founded in mid-2015 by seasoned entrepreneurs Owen Moore and Chris Panczuk, and is expected to be on an impressive $1.1M revenue run-rate in Q4 2017. Management has accomplished a great deal in the 2 years since the company was founded. They’ve designed and manufactured two IIoT products, have gotten two large contracts with big name clients (a worldwide armoured truck company and Aphria) along with smaller orders from various customers, are benefiting from a high conversion rate of pilot trials to larger orders, and have secured remarkable partnerships with industry giants Bell and Huawei, something very atypical for the vast majority of start-ups.

 

Products:

 

BeWhere offers variants of its two IIoT products: Bluetooth Beacons and mobile-IoT sensors. The former product is the only one commercially available today, and is the first product the company worked on. Furthermore, BeWhere’s software integrates easily with third-party applications using APIs.

 

Bluetooth Beacons:

 

With the advent of Bluetooth Low Energy (BLE) in the last few years, it became possible to monitor real-time information on movable assets using Bluetooth. BeWhere is the first to have seized the opportunity by providing a beacon solution that is both significantly cheaper (in majority of cases) and simpler to work with than active RFID tags with comparable battery life (3-5 years) and range (250m+). Radio-frequency Identification (RFID) has historically faced some adoption challenges stemming from its high cost. With this antiquated technology, the customer is not only paying a little more for the active tags with the sensors, but also needs to purchase one or several “readers(s)” to read the sensor data off the tags. Typical RFID readers range from $100-$5,000+.

 

Contrary to RFID, BeWhere’s Bluetooth beacons don’t need a “reader” to read the sensor data and then transmit it to the server where the data will be stored and analyzed. Instead the beacons transmit their data directly to a cellphone, Bluetooth/WiFi gateway (akin to a router) or telematics device, which then take care of getting the data to the server. Therefore, it’s as simple as installing an application on employees’ phones or plugging in a gateway to get the sensor data from all neighboring beacons. The cost of a beacon with sensors is $35, and it includes 7$ of prepaid monthly service fees. The company charges $0.50 monthly per beacon or $5 yearly per beacon. BeWhere makes a healthy 60% margin on the hardware, and 80%+ on the service fees. As the number of beacons deployed increases, the service fees revenue segment will begin to dominate the hardware revenue segment, at which point revenues will be mostly recurring in nature for this business. Furthermore, the hardware revenue portion can be considered semi-recurring as customers will need to replace their devices once the batteries reach the end of their life.

 

http://i64.tinypic.com/1688my8.jpg

 

 

Mobile-IoT (M-IoT) sensors:

 

With the huge IIoT market opportunity beginning, cellular carriers are wanting to get their piece of the pie by rolling out new cellular networks to allow for the direct connections of IoT devices, and collecting a small monthly connection fee per device. These cellular IIoT networks are either NB-IoT or LTE-M (also called CatM1) networks. Verizon was the first of the carriers to roll out its LTE-M network back in March. Others are following suit with targeted dates in July by Sprint, and early 2018 by Bell Canada. These networks are specifically designed for low-bandwidth applications needing a battery life of several years, e.g. smart cities, smart agriculture, supply chain management, fleet management, asset tracking/monitoring, etc.

 

BeWhere immediately recognized the market opportunity and designed a next generation beacon (or mobile-IoT sensor) to communicate sensor data directly with these new cellular networks. They are working closely with two industry titans: Bell and Huawei. BeWhere’s product is currently being tested by Bell, and should be commercially available in September well before Bell rolls out their LTE-M network in early 2018. Huawei is the manufacturer of the NB-IoT chipset found inside the product. They have been showcasing BeWhere’s product to their carrier customers mostly recently at the Shanghai Mobile World Congress. Huawei is looking to drive their chipset and NB-IoT network equipment sales growth this way.

 

Management expects the revenue model for the mobile-IoT sensors to be an all-inclusive monthly recurring revenue on a 2-3 year contract with BeWhere getting 60% and the carrier 40%, as is typical in the industry. Based on my experience, I’d estimate the cost of the hardware to be around $20. I’d expect there to be several months to a year payback period, after which it would be all recurring revenue at 80%+ margin since the only direct costs are associated to the company’s networks (where the data is stored and analyzed), similar to a SaaS company. Management believes they can generate hundreds of thousands in revenue per month in 2018 from the mobile-IoT sensors.

 

http://i65.tinypic.com/34dsgth.jpg

 

 

Competitors & competitive advantages

 

BeWhere enjoys a market leader position in both the Bluetooth beacon market and mobile-IoT sensor market. In the former market, they have patented their unique methodology of using the Bluetooth protocol to communicate efficiently with over hundreds of beacons. Competitors using the Bluetooth protocol in its standard “pairing mode” are limited to a few simultaneous connections, a quicker battery drain and unreliable communications where packets are occasionally dropped – think of the times your cellphone had issues with the infotainment system in your car or with a wireless Bluetooth speaker. As such, BeWhere is the only company to offer Bluetooth beacons on a large scale. Competitors wanting to get large scale orders would have no choice but to license the technology from BeWhere.

 

As previously mentioned, the mobile-IoT market is in its infancy and BeWhere will be first to offer a commercially available product to the carriers. Its first mover advantage coupled with management’s multi-decade industry experience and a well-designed product, should secure the company’s position as market leader for the future. The nearest competitors are ~2 years behind as the company has been developing IIoT products since mid-2015. The knowledge and experience acquired from the Bluetooth beacons is relevant to the mobile-IoT sensors since one is the evolution of the other. Considering how big the IIoT market will be, it doesn’t matter if BeWhere doesn’t hold a major technological advantage down the line. As long as it can entrench its market leader position by continuing to be the first mover, providing excellent customer service and supporting its software, it is sure to do very well. A comparison can be made to the telematics industry today where some companies have billion dollar market caps, but don’t offer much more in the way of technological advancements compared to smaller competitors.

 

IIoT market opportunities:

 

The company targets primarily three verticals with its Bluetooth Beacons: i) Transportation & Logistics Services, ii) Emergency Medical Services and iii) Utilities, Construction and Rail. A video on the company’s website best explains the uses for the above mentioned markets: https://www.youtube.com/watch?v=XsEu33pL7l4. Nevertheless, the company is fully capable of supporting other applications and markets with its beacon technology.

 

The mobile-IoT sensors have a considerably more applications than the beacons. They can be used in smart cities, smart agriculture, smart infrastructure, supply chain management, fleet management and asset tracking to name a few large applications.

 

Management & BOD:

 

Owen Moore, CEO founded Grey Island Systems International which went on to be acquired by BSM Wireless (previously Webtech Wireless before its merger with BSM Wireless) for $38M. As president of Grey Island Systems, Owen drove revenues to $24M in less than 10 years. After the sale of his first company, he joined BSM Wireless as the executive VP of sales. Chris Panczuk, COO has been in the telematics industry since 1998 and was with BSM wireless until 2014. Chris’s role at BSM was VP of enterprise sales.

 

Between both founders, there is ~35 years of experience in the industry. Management is the principle reason for the business’s success to date. Without their industry experience, it would have taken years to build an equally robust distribution channel as the company has today.

 

Mark Kohler has recently been appointed CFO. Mr. Kohler is a Chartered Professional Accountant, Chartered Accountant, and a designated ICD.D with the Institute of Corporate Directors. He’s also a leader in the technology and financial services industry with over 29 years of experience as an investor, entrepreneur, senior executive, and board member at some of Canada’s leading public and private organizations. Recently, as the Executive Chairman of QHR Corporation, Mark championed that Company’s strategy and profitable transformation that led to its $170 million sale to Loblaw Companies Ltd.

 

BeWhere’s board is also very solid with two capital markets experts and one telematics industry leader. Its executive director, Greg Cameron is a capital markets leader and advisor, and is president of Colby Capital Limited. In excess of the past 20 years Mr. Cameron has been an investor in a number of high-growth businesses and has assisted in raising funds for small and mid-cap companies in Canada and abroad.

 

Financials:

 

For the FY2016, the company generated $225k in revenue and had adjusted net loss of $722k (adjusting for one-time RTO expenses, share-based comp and D&A). They started selling their product in mid-2016 as it took about one year of development to be commercially ready. Considering their product was on the market for half a year, they were able to convert some pilot trials to larger orders with a few customers rather quickly.

 

In Q1 2017, they announced 2 large contracts, one with an international provider of armoured car transportation for its US business, and the other with Aphria. The only companies which fit the description of “one of the most trusted security and logistics brands in the world” mentioned in the news release are Brinks and Garda. IMO, I think it’s pretty safe to assume that these are significantly large contracts otherwise the company wouldn’t have bothered announcing them. In addition, it’s stated in the press release of the contract with the armored car transport company that BeWhere looks forward to growing their business with them as they operate in over 100 countries worldwide. I don’t believe it would be too difficult for them to secure the rest of the company’s international business, and they seemed confident about accomplishing this as per the tone in the PR.

 

I recently spoke with management, and they guided that revenues would be doubling QoQ for the next few quarters. I suspect that Q2 and Q3 revenue will be mostly from the two aforementioned contracts given the necessary installation time. In my financial model below, I assumed that revenues would more than double QoQ for Q2 considering the small revenue base of Q1. To remain conservative I assumed a double QoQ for Q3 and ~60% QoQ growth for Q4. I also used 50% blended gross margins since I’m presuming that discounts were given on the hardware for the two large orders. Additionally, management told me expenses would be slightly higher in the coming quarters due to the R&D with the mobile-IoT sensors. OPEX is expected to normalize back to $400k/Q in 2018.

 

In Q4 2017, I have the company on a $1.1M revenue run-rate and ~$150k net income run-rate. All revenue in 2017 is assumed to be from the Bluetooth beacon business given that the mobile-IoT sensors aren’t available yet. Annualizing the estimated Q4 revenue and net income run-rates yields a forward P/S of 3.75x and a P/E of 25x. I easily think they could double revenues in FY2018 as the Bluetooth beacon business should keep growing, and the mobile-IoT sensors will be available for sale in September. Therefore, I see 100%+ upside on the stock by early next year. More importantly I see revenue growth continuing in the long-term and I expect share price appreciation to carry forward for years. BeWhere is doing everything right to secure its seat as the market leader for the future.

 

The company’s balance sheet is solid with no debt on the books and $1.4M in cash on hand. Should they need to do a raise to fuel the mobile-IoT growth, it would be on favorable terms considering that their last private placement in mid-2016 was oversubscribed and money had to be turned down. With all the business progress that has been made since then, it’s almost impossible to think that they couldn’t raise money on great terms if needed.

 

http://i65.tinypic.com/2qdx2kj.jpg

 

 

PRs:

• Bell partnership: http://www.bce.ca/news-and-media/releases/show/Bell-to-launch-LTE-M-network-to-transform-the-way-Canadians-use-the-Internet-of-Things-1

• Huawei partnership: http://www.huawei.com/ca/news/ca-en/201706281st-Canadian-Mobile-IoT-Sensor

 

[matthewd98]

A technology product that takes just a year to develop and commercially deploy would likely not have much of an entry barrier.

 

For their Bluetooth Beacon products, there is a barrier to entry by way of their patents around using the Bluetooth protocol to communicate efficiently and effectively with hundreds of beacons. Bluetooth pairing is very battery intensive, unreliable as packets are occasionally dropped, and you are limited to 8 simultaneous connections. The company is using the Bluetooth protocol in a way it was never intended to be used to get around these limitations and hence why it's patentable.

 

As for the mobile-IoT business, like I said there doesn't need to be a major technological advantage as long as they are the first movers and get scale quicker than others. So far they are ahead. Management's cumulative ~35 years experience in the industry helped a lot with securing partnerships with Bell (BCE), Huawei, Geotab, etc. Look at the telematics companies like Fleetmatics or the others, all they do is offer GPS units for fleet tracking along with software yet Fleetmatics is a $2B+ company.

 

As previously mentioned, the mobile-IoT market is in its infancy and BeWhere will be first to offer a commercially available product to the carriers. Its first mover advantage coupled with management’s multi-decade industry experience and a well-designed product, should secure the company’s position as market leader for the future. The nearest competitors are ~2 years behind as the company has been developing IIoT products since mid-2015. The knowledge and experience acquired from the Bluetooth beacons is relevant to the mobile-IoT sensors since one is the evolution of the other. Considering how big the IIoT market will be, it doesn’t matter if BeWhere doesn’t hold a major technological advantage down the line. As long as it can entrench its market leader position by continuing to be the first mover, providing excellent customer service and supporting its software, it is sure to do very well. A comparison can be made to the telematics industry today where some companies have billion dollar market caps, but don’t offer much more in the way of technological advancements compared to smaller competitors.

[beerbaron]

Matthew, I heard from the grapevines that the next generation of Bluetooth would incorporate a Zigbee like protocol. What are your toughts on the impact on their business model?

[johnny]

Do they describe (or better yet, identify) what they believe their key patents are?

 

Simple search gives me one, but maybe there are others?

 

https://patentimages.storage.googleapis.com/d9/f6/74/a8efda98d8726c/US20160307154A1.pdf

 

Bluetooth has a reputation for being an absolutely nightmarish protocol to work with. So, on the one hand, I can see real value in somebody successfully wrapping it up and making it reliably useful to a non-engineer end-user. But the other hand: I'd default to an assumption that they've not nailed it.

 

They should give out sample devices with investor information packets.

[matthewd98]

Matthew, I heard from the grapevines that the next generation of Bluetooth would incorporate a Zigbee like protocol. What are your toughts on the impact on their business model?

 

Great question. I'm not entirely familiar with Zigbee as it's not a very common protocol and I don't see it displacing the incumbents like WiFi, Bluetooth, cellular. Chipset manufacturers aren't fully on board with Zigbee, they prefer to devote development resources to the aforementioned protocols. From what I know of Zigbee, it's range is limited to 10-100m and requires line-of-sight. That's not good for industrial IoT ("IIoT") applications, which usually requires a larger coverage area.

 

Bluetooth did announced today that it added mesh networking capabilities. It will be interesting to see how it works in real-world applications -- Bluetooth still hasn't worked out all the kinks with its "pairing" mode (or connection-oriented communication). I'm inclined to believe that it won't be as effective as BeWhere's methodology which uses a star bus-topology (all beacons connect to one or multiple points, aka Bluetooth/WiFi gateways or employee's cellphones, where the data is then transmitted to the server). Mesh networking is harder to implement, generally slower as the packets must pass through several nodes sometimes and since there's more packet routing involved, it would lead to lower battery life I'd imagine. There's also more room for routing error when compared to star bus-topology. Furthermore, it would still take a competitor sometime (~1 year+) to develop their Bluetooth Beacons with the mesh networking capabilities. Let's not forget that one of BeWhere's major competitive advantage also stems from their 35 year industry experience which resulted in partnerships with BeWhere, Huawei and Geotab -- all three very large companies.

 

Star-bus topology: http://thought1.net/nt100/module3/images/backbone.gif

VS. Mesh topology:

[matthewd98]

Do they describe (or better yet, identify) what they believe their key patents are?

 

Simple search gives me one, but maybe there are others?

 

https://patentimages.storage.googleapis.com/d9/f6/74/a8efda98d8726c/US20160307154A1.pdf

 

Bluetooth has a reputation for being an absolutely nightmarish protocol to work with. So, on the one hand, I can see real value in somebody successfully wrapping it up and making it reliably useful to a non-engineer end-user. But the other hand: I'd default to an assumption that they've not nailed it.

 

They should give out sample devices with investor information packets.

 

I can explain the way their methodology works since it's patented. Essentially, they stuff the sensor data into the advertisement packets. The advertisements packets are used for the pairing process. When you try to connect two Bluetooth devices together, you have to have them search for each other and in doing that, they are both transmitting their device name, signal strength along with other data -- that's the "advertisement" packet. So it's a burst communication. BeWhere simply stuffs the sensor data in that and is read by the Bluetooth/WiFi gateway or employee's cellphones or telematics units to send the data off to the server to be analyzed.

[johnny]

Their patents actually preclude anybody else from coming up with their own way of data-stuffing the advertisement? I am not smart enough to fully comprehend the patent filing, but you seem like you've read up on this. How narrow should we expect the method protection to be?

[matthewd98]

Their patents actually preclude anybody else from coming up with their own way of data-stuffing the advertisement? I am not smart enough to fully comprehend the patent filing, but you seem like you've read up on this. How narrow should we expect the method protection to be?

 

@Johnny: Yes exactly. I actually have an electrical engineering background that's why I'm familiar with the technology. They have multiple patents, some design and other utility ones. Some are still pending, but should be approved in 1-2 months. The utility patents cover stuffing data from any sensor (e.g. temp, humidity, movement, light, etc.) into the advertisement packets so it's quite broad. The design patents are around the placement of the sensors and batteries within the beacon. I'm no patent expert, however the patents look solid to me.

[rukawa]

I decided not to invest in BeWhere Holdings. DangerAhead Corp just seemed more attractive.

[matthewd98]

I decided not to invest in BeWhere Holdings. DangerAhead Corp just seemed more attractive.

 

If you're not going to contribute anything constructive, then you might as well not post at all. If you have concerns about the investment thesis, why don't you post them and I'd be happy to debate them.

 

Just because the company is a microcap it doesn't mean it's a bad business. There's a lot of hidden gems in < $100M market cap stocks -- every large business started out as a small business. The last idea I covered is already up 200%+. Go look at it: http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/ttz-total-telcom-inc/. Of course it's no guarantee of success for BeWhere, but I believe in the opportunity. I've owned the stock for 1.5 years and management has executed on everything they set out to do. It's hard to bet against a management team that gets things done.

 

Matthew

[doc75]

FWIW I interpreted Rukawa's comment as a joke.

 

Matthew:  I haven't spent even 5 minutes looking into this, but when I looked up a stock quote I was struck by the June PR describing shares being issued to consulting companies owned by the management.  On the positive side I like that the managers are taking equity in place of cash.  On the negative side I have always found this type of indirect compensation (where management teams offer their services as consultants) to be obnoxious.

 

Again I haven't looked into this at all and I'm sure I would easily answer my own question in a short time... but do you have any comments on this arrangement?  In my experience it has always been  correlated with questionable management, while you speak highly of the team here.

 

Thanks.

[rukawa]

When I was dating online, occasionally I would get this very hot girl who would be messaging me but something just seemed off with her messages. So I would google the message and find them all over the internet. Then I knew I was dealing with a scammer.

 

When I was reading messages on the Ackroo thread, the messages from MatthewD98 and unusualstocks where just off. They were overly optimistic, never seeing any downside, extremely promotional. So I googled them and of course I found them in other blogs and forumns

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/ackroo-akr/30/

 

 

And so

1) Same posts repeated in different forums

2) small stocks with low volume on TSX venture exchange

3) two posters who know each and collaborate externally,  tag-teaming a thread and posting purely promotional messages.

4) no messages posted in any large cap threads or in any threads of a general nature (politics, general question etc)

 

Conclusion: Shill

 

I hope this post was more "constructive" than my last one :)

[matthewd98]

FWIW I interpreted Rukawa's comment as a joke.

 

Matthew:  I haven't spent even 5 minutes looking into this, but when I looked up a stock quote I was struck by the June PR describing shares being issued to consulting companies owned by the management.  On the positive side I like that the managers are taking equity in place of cash.  On the negative side I have always found this type of indirect compensation (where management teams offer their services as consultants) to be obnoxious.

 

Again I haven't looked into this at all and I'm sure I would easily answer my own question in a short time... but do you have any comments on this arrangement?  In my experience it has always been  correlated with questionable management, while you speak highly of the team here.

 

Thanks.

 

I spoke with management about this and the situation is different than it appears. They were issued at that price because of the tax consideration for both individuals and they were issued in lieu of cash for work done by the new CFO and board chairman. They are both board members and didn't get any compensation the previous year either which should be taken into account. They took cash instead of equity to increase their stake as they believe in the company.

 

Keep in mind that both co-founders (CEO and COO) own 16% of the shares each and that they take a modest salary as per the management information circular. They are mindful of dilution..

 

In general, I agree that's important to be cautious about shares being issued at a discount to management in lieu of cash. I think one should also hear out management's side before jumping to conclusions. It's another reason why I like microcaps: management is easily accessible.

[matthewd98]

When I was dating online, occasionally I would get this very hot girl who would be messaging me but something just seemed off with her messages. So I would google the message and find them all over the internet. Then I knew I was dealing with a scammer.

 

When I was reading messages on the Ackroo thread, the messages from MatthewD98 and unusualstocks where just off. They were overly optimistic, never seeing any downside, extremely promotional. So I googled them and of course I found them in other blogs and forumns

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/ackroo-akr/30/

 

 

And so

1) Same posts repeated in different forums

2) small stocks with low volume on TSX venture exchange

3) two posters who know each and collaborate externally,  tag-teaming a thread and posting purely promotional messages.

4) no messages posted in any large cap threads or in any threads of a general nature (politics, general question etc)

 

Conclusion: Shill

 

I hope this post was more "constructive" than my last one :)

 

Did you bother to check the date of my post in the Ackroo thread? My last post in the thread was November 18, 2015... Yes I collaborated with UnusualStocks for a few months and I also wrote-up the company, but I sold all my shares in 2016 because management wasn't delivering -- things just kept getting delayed.  I can pull up posts from other forums if my lack of posting about the company isn't convincing enough.

 

UnusualStocks is a fellow investor by the name of Scott Felsenthal . You can even hear him speak on this podcast: https://planetmicrocap.podbean.com/e/episode-10-microcap-investing-a-perpetual-state-of-learning-with-scott-felsenthal-unusualstocksnet/. I'm still in touch with him, but our portfolios are vastly different.

 

There are risks in any investments. I never said there weren't, I should have added those risks in my thesis.

 

1) Yes I post on a few forums. Am I not allowed to? I hardly copy /paste my posts, unless it's an investment thesis which I'm not going to rewrite.

2) Most stocks on the Venture have low volume. BeWhere actually has quite high volume.

3) See above -- I haven't posted in Ackroo since Dec 2015

4) I only invest in microcaps. Yes I know crazy right? There's actually a lot of investors who've done well in microcaps (< $100M market cap), including Warren Buffett when he first started out.

[matthewd98]

Recent analysis of asset tracking IoT market: http://enterpriseiotinsights.com/20170809/opinion/asset-tracking-mobile-experts-tag9. It bodes well for BeWhere.

 

Two major takeaways:

 

1) RFID technology has been adopted widely by enterprises, with low costs for passive tags and long range for active tags. Passive RFID doesn’t provide real time location (RTLS) and it’s cumbersome to use it since every device needs to pass near the reader. The challenge for IoT technologies will be to steal market from the RFID gang. How do you compete with $0.10 per tag? You offer wide area, real-time tracking at low prices. A ten dollar LPWA module works great, and even though it’s 100x more expensive than passive RFID, LPWA costs are already low enough for early-adopter applications. We expect 10+million NB-IoT shipments this year to drive down cost quickly.

 

2) In asset tracking, more NB-IoT devices will ship this year than LoRa or Sigfox devices. China Telecom already has more than 5 million bicycles on their NB-IoT network, and there will be over ten million by the end of the year.

[matthewd98]

Q2 results are out. Mgmt beat their double QoQ target for this quarter, albeit the revs base was small to begin with. If they continue on this trajectory (which all hints in the PR seem to corroborate this) then the company should be profitable by Q4 and revs will ramp up quite quickly.

 

Highlights of the quarter:

- rev grew to $405k compared to $132K in Q1.

- gross margins improved to 40%. There is still a lot more room to improve as rev base is still very small.

- opex stayed the same. although there is $35K for bad debt and $85K of share-based comp.

- cash at $1M. got another $500K after Q2 from exercise of warrants.

- if the company is able to double rev in consecutive qtr then Q4 should be profitable. cash shouldn't be an issue.

- The Company will launch a Low-Powered Wide Area Network (“LPWAN”) cellular beacon in the fall of 2017 and continues to garner strong interest for its LPWAN technologies, and is in the process of finalizing certification for its product with a number of carriers across the globe. Additionally, the company has been invited to speak at the Mobile World Congress Innovators Showcase debut in September in San Francisco. As per the CEO’s comment in the PR, this event will generate further attention on the company.

- 5 new full-time employees added, including a new CTO

- Commerical launch of Mobile-IoT sensor (LTE-M / NB-IoT) in the Fall

- Commencing of initial deployment and completion by end of 2017 for Fortune 500 armored truck company. That implies future contracts and revs with this company, which is a good sign if the customer is repeat business.

- CEO said “ five full time equivalent employees were added which will allow us the execute on the opportunities in front of us and give us the scalability to significantly ramp our revenues.” Clearly lots of opportunities in front of the company, and a confirmation that revs are expected to ramp quickly.

[matthewd98]

[Edited post because I accidentally posted in the wrong thread. I meant to post in the Total Telcom (TTZ.V) thread: http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/ttz-total-telcom-inc/10/].

[Green King]

so you sold while making no money? Or were you trying to get some bag holders with your post? At the price you've posted everything, there was priced in there was MOS.

 

But, Thanks for telling us that you are out.

[matthewd98]

so you sold while making no money? Or were you trying to get some bag holders with your post? At the price you've posted everything, there was priced in there was MOS.

 

But, Thanks for telling us that you are out.

 

Sorry my mistake, I meant to post that in the Total Telcom (TTZ.V) thread. I was posting from my cellphone while on vacation and screwed up. Woops...

 

Edited my post above.

[matthewd98]

BeWhere's CEO, Owen Moore, will be speaking at the 5th GSMA Global Mobile IoT Summit. It's encouraging that the company was asked to participate in this summit where large telecom executives will be present (VP of product development at AT&T, IoT general manager at Sprint, etc.).

 

Here's the schedule for the summit: https://www.gsma.com/iot/event/5th-gsma-global-mobile-iot-summit/

[matthewd98]

A few updates:

 

• The company filed a notice declaring intention to be qualified to file a short form prospectus. Perhaps they'll be offering securities for sale soon.
  
• Bruce Campbell again on BNN yesterday talking about BEW: http://www.bnn.ca/video/bruce-campbell-discusses-bewhere-holdings-inc~1209301
  
• Owen's presentation from the Global Mobile IoT Summit (GSMA) summit should be on the company's website soon.
   
  

[matthewd98]

Well there was a raise too.. It was just announced this morning. 7M shares @ $0.30 with no warrants for proceeds of $2.1M

 

The funds are mostly for mobile-IoT sensors inventory if you read between the lines in the PR. I think it's great that they are ahead of schedule with the mobile-IoT sensor sales. Sales will start showing up in Q4 as per the news release: "The Company expects to launch the new products and provide them to existing partners and resellers in the fourth quarter." I wouldn't be surprised if they've already received some orders, hence why they are stocking up on inventory.

 

https://web.tmxmoney.com/article.php?newsid=8765383096537036&qm_symbol=BEW

 

I'll be participating in the PP.

[matthewd98]

Here's the link to BeWhere's presentation at the GSMA summit (industry conference where T-Mobile, AT&T and Verizon participated): https://www.dropbox.com/s/hidwnk9e0liti92/GSMA-BeWhere-2017-09-19.pdf?dl=0. The presentation will also be up on the company's website soon.

 

So I think it's safe to assume that the company is breaking ground with a few US carriers especially after this summit which gave them more visibility, if they weren't already on carriers' radar. Furthermore, if we assume they already have LPWA (mobile-IoT) orders in Q4 as per the financing PR seems to indicate, then I'd imagine it would be with a US carrier given that they are the only ones with running LTE-M networks at the moment. Bell's LTE-M will be only soon though. I think they'll start conversations with European and Asian carriers next -- seems like the next logical move.

 

It'll be exciting to see the LPWA orders come in after commercialization of the product is completed some time in Q4.

 

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Also, Here's an interesting article on the NB-IoT and IIoT market: http://www.businessinsider.com/new-narrowband-iot-module-international-markets-2017-9

 

Highlights:

 

"While the two largest mobile carriers in the US, Verizon and AT&T, are currently rolling out LTE Cat-M1, international network operators are primarily backing NB-IoT as their LPWAN standard of choice — it is currently being tested in Spain, Singapore, China, and South Korea. As operators finalize these tests and deploy the network commercially, demand for NB-IoT compatible modules will rise sharply, giving Quectel a sizable opportunity in the Asia-Pacific region."

 

"BI Intelligence, Business Insider's premium research service, expects that more than 24 billion IoT devices will be installed globally in 2020, and the vast majority of these will fall into the small, low-power category."

 

[matthewd98]

1. New PR today: Bewhere closes $1.84M first tranche of financing. https://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aBEW-2513712&symbol=BEW&region=C

 

2. Bruce Campbell from StoneCastle Investment Management Inc. (Toronto) discusses BeWhere:

@ 12:20

[matthewd98]

1) More good news today. Finally the company officiallys announces that they've been working with Brinks. BeWhere and Brink's Partner to Deliver Solutions for Worker Safety: http://sedar.com/CheckCode.do;jsessionid=00000C56q-HiWr2IXQxtJ5RZmL-:188setvlh

 

2) Also, Owen's presentation at GSMA summit: https://www.gsma.com/iot/mwca-vid7/

 

3) Bruce Campbell talking up BEW again. mentions the certification currently going on w/ ATT and Verizon.

 

http://www.bnn.ca/video/bruce-campbell-discusses-bewhere-holdings~1230849