On4 Communications Inc (OTCMKTS:ONCI) is fighting back against after a tough fall in the late January. ONCI is up 24% for the day and has 10-day volume at 48.18M. The company issued a shareholder letter that might have helped soothe investors after a tough start to the year.

The shareholder letter preached long-term growth and ran through ONCI’s assets and plans for the future. To be fair, while January was not kind to the company, ONCI is up over a 200% when you look at it over a 365 day timeline. This stock erupted out of nowhere and certainly made a lot of people money last year. However, in regard to what have you done lately, ONCI is working to finalize some deals that it needs to keep the stock from drifting back to triple penny.

On4 Communications Inc (OTCMKTS:ONCI) trumpets itself as a company that seeks to acquire and/or merge with businesses that present new opportunities and innovative business plans, especially with respect to new technologies.

The Company owns a 49% equity/ownership stake in Family Mobil Safety Marketing, the distributor of a safe driving App and a 49% equity/ownership stake in Digital Media Management & Consulting, a joint venture which implements electronic sell-through and content advertising-supported networks.

According to company materials, “On4 is a holdings company with an aggressive focus of acquiring proven and profitable businesses. Our first project is focusing on businesses operating in the $1.7 trillion U.S. healthcare industry. Our newest targeted businesses are operating in the trillion-dollar mobile App space. Our first acquisition in the mobile App space is FMS Marketing a global creator and distributor of mobile Apps for Android and iPhones. We are also targeting businesses to acquire and joint venture with in the medical marijuana and emerging MJ ancillary products space.”

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First, here is an important quote that starts the letter, I will follow up with a breakdown of a few juicier items below:

“We had a stellar year, grossing over 1.8 million from nothing last year we were up 50 plus percent quarter over quarter and far out-paced expectations.  With regards to the 2-million-dollar payment that was to buy the remainder of FMS marketing that we did not own, Alan Baily and I are in negotiations with the Del SOS to reduce the debt owed. The debt is nowhere near $900 thousand that is a number that they put on all companies until they file. In regards to the share reduction I stated on page 2 that the reduction has been reported with the Colorado SOS and is under Hexagon Holdings. As soon as we get approval, the share reduction will be in place. I have also reduced my commission rate to 12.5 percent, a 50% reduction, so we will have more cash for all the things we need to do.  Overall, I’m thrilled with our financials and we are growing very fast signing deals every week.”

Some key updates noted in the letter that pertains to the BSafe Driving App:

  • Regarding KL, ” We are in the process of making our mold, which will allow us to reduce our costs by 50%. Each mold can make 150,000 to 200,000 units. I will be traveling back to KL to start production shortly.”
  • Regarding Mercedes Trucks in the United Arab Emirates: “Met with Navin Sook, their head of Fleet management and Safety/Security features. In addition to just selling/leasing their trucks/vans he also makes sure to sell them the additional features package, which includes many of the already existing Mercedes features such as automatic braking, tracking, etc. We discussed including the Bsafe/Fleetsafer software as part of their package offering. He said it could not come as part of the Mercedes package as Mercedes only puts their own items in a package. But he said he could potentially “bake” it in as a separate item but included in an overall price. I gave him a unit to test and will follow up with him again in a week.”
  • Regarding Wehbe Insurance: “I met with Omar Wehbe, who runs one of the 3 top Insurance companies in the Gulf Region. We reviewed Bsafe and Fleetsafer, He saw multiple benefits for Insurance companies but also has good relationships with other Fleet and auto companies. He wanted some time to think about how best to use the technology. He said the best thing to would be for me to let him know next time I’m out and he would arrange further meetings/intros as well as propose what he would do with Bsafe.”

On4 Communications Inc (OTCMKTS:ONCI) now owns a market cap of $10.98M with 3.5B shares available. ONCI needs to ink the deals it has dangling in order to return to the highs we saw in late 2017. We will be providing updates all this month as the company continues to meet with important players. Sign-up for continuing coverage on shares of $ONCI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: We hold no position in $ONCI, either long or short, and we have not been compensated for this article.