DIRECTVIEW HOLDING COM USD0.001 (OTCMKTS:DIRV) is a quad zero trading sub penny that had a big day yesterday trying to get it’s head above water, it is difficult to draw any technical conclusions by looking at the historical prices.
A look at the chart below shows the single spire rally, for these stocks it is better to learn about what they do versus where they have been.
DIRECTVIEW HOLDING COM USD0.001 (OTCMKTS:DIRV) is a company focused on ownership and management of a video and security technology company, who recently announced that it has completed the acquisition of Video Surveillance, LLC and ApexCCTV, LLC, two Texas-based video security and surveillance company, operated and solely owned by Mark D. Harris. Based on the unaudited financial statements for fiscal 2016, the combined revenue of the Acquisition Companies is approximately $5.3 million.
Find out when $DIRV stock reaches critical levels. Subscribe to FR Right Now by entering your Email in the box below.
Under the terms of the securities purchase agreement, Directview acquired all of the issued and outstanding equity interests of each of the Acquisition Companies, for a minimum of approximately $1.9 million in cash to be paid approximately six months from the date of acquisition. Upon the successful completion of a two year audit of the Acquisition Companies in accordance with U.S. GAAP accounting standards for the fiscal years ended 2016 and 2015; DirectView will be obligated to pay an additional amount ranging from $2,000 up to $500,000, based on the positive average annual cash flow achieved in those two years. DirectView has received a non-binding term sheet to finance the payments as well as to fuel future growth of the combined companies. The Company also intends to explore a number of potential financing sources to achieve the best long term results for the Company and its shareholders. For a more detailed description of the SPA, please review our current report on Form 8-K filed with the Securities and Exchange Commission on April 26, 2017.
As part of the transaction, Mark D. Harris has entered into a three year employment agreement with DirectView, where he will serve as President of the Acquisition Companies. Mr. Harris is a technology services veteran with over 25 years experience and a proven track record of building profitable revenue growth. He served for 19 years at Intervoice, a world leader in delivering natural, intuitive ways for people to interact, transact, and communicate through technology. As Senior Vice President of Americas Operations and Global Services at Intervoice, he led a team, which was responsible for pioneering the execution of a new Enterprise Hosted Solutions business, to support advanced self service applications and intelligent transactions. Beginning in 2008, upon the acquisition of Intervoice by Convergys Corporation, he served as Senior Vice President of Global Technology Services at Convergys Corporation through 2014. He brings a wealth of experience in M&A integration, business development and strategic planning to the Directview management team.
Roger Ralston, CEO and Chairman of DirectView, stated, “The acquisition of these companies is a very exciting ..event for DirectView as we position for current and future growth. Mr. Harris has built two businesses that in less than three years, are generating substantial revenue and, more importantly, positive cash flow. He also has a wealth of technology management experience that will be invaluable for DirectView as we execute our strategic growth plan. With his expertise in establishing a nationwide market presence through direct and online sales, and our ability to tailor customized solutions in the marketplace, I believe we have set the stage to achieve significant organic sales growth in the coming years. Additionally, this acquisition gives us the critical mass to opportunistically roll-up other security and surveillance companies, in order to further accelerate the growth of our business and build significant long term value for our shareholders.”
Mark D. Harris added, “I am excited to now be a part of the DirectView team as we work to become a force in our industry, by creating a very attractive roll-up platform. Through this combination, all of our companies will benefit from increased bandwidth, greater expertise and more wide ranging sales opportunities. I look forward to implementing the proper business strategies to build our business, both organically, and through prudent acquisitions in order to provide the best solutions in the market for our growing customer base.”
For the shareholders in stocks like DirectView Holdings, Inc. (OTCMKTS:DIRV) they have been very patient as we rarely see four zeros before and actual price for the stocks we cover, but I guess they live out there in the trading world, it seems like an awfully long road to get back to the penny level, but they seem to be going in the right direction, and got the attention of the market as we wrap up the week. We will be sorting out the fundamental side of the story here over coming weeks. For more details on DIRV and other fast-moving penny stocks, please subscribe to FinanceRegistrar.com now.