SIM.V - Still discounted.


Siyata Mobile Inc. (SIM.V) is a provider of vehicle mounted mobile communications platform (Push To Talk Over Cellular ("PoC") devices).

We initiated coverage on (March 28). Since then, we published four notes: June 1, July 3, October 12 and November 26.

Here were the releases issued since then.

Nov. 27 -Received an initial purchase order for 480 of its Uniden® CP250 4G/LTE tablet device from an undisclosed transportation company.

The purchase order includes 480 licenses with recurring revenue over a three-year term.

Nov. 29 -Q3 Earnings: Revenue of $4.9 M in Q3 2017, $15 M in the first 9 months, a 77% increase YoY. Working capital at $9.9M vs $4.5M (YoY).

Dec. 1 -Beacon revised price target to $1.25

Dec. 4 -Receives FCC and Industry Canada (IC) Approval for its Uniden® UV350 4G/LTE In-Vehicle Cellular Device.

Dec. 7 -Secures distribution agreement with CNM Wireless LLC (CNM). CNM provides logistics to a Tier 1 U.S. wireless operator exclusively.

Dec. 13 -Announces brokered private placement of up to $3M in unsecured convertible debentures.

Dec. 14 -Increase brokered private placement by $1M resulting in up to $4M. Expected, 0.4M-o.6M to the bottom line when exercised.

Dec. 19 -Wins First Responder's contract valued at over $1.9M. In addition to the devices sold, the contract also includes three (3) year recurring software revenue valued at $0.45M. The company expects the contract to double in size in 2018.

Dec. 29 -Close private placement for $4.6M of unsecured convertible debenture announced Dec. 14th. The Offering was completed through a syndicate with PI Financial Corp., as lead agent, and including Beacon Securities Limited and Paradigm Capital Inc. (the “Agents”).

Jan 29 - Secured device and software sale contracts to multiple customers and industries including municipalities, trucking, security, bus, and taxi companies in January. The recurring revenue portion of these sales are expected to contribute $0.3M in revenue annually.

Feb. 7 -An additional purchase order for 200 devices and 200 software licenses, which is recurring revenue, for its CP250 Tablet/DVR Connected Vehicle 4G Device. Same company as November 27th release - initial purchase was for 480 devices.

Feb. 28- Logic Wireless to distribute Siyata's UV350 and CP250 devices in Australia and New Zealand.

Mar. 7 -UR7 Rugged Clamshell Device Now Integrated With ESChat PTT. ESChat is the leading solution for carrier independent Secure Push to Talk (PTT) over LTE communications. ESChat includes AES-256 encrypted PTT voice and multimedia (text and image) messaging.

ESChat provides live and historical (bread crumb) tracking and mapping. Currently used by the U.S. Military as well as federal, state and local law enforcement, ESChat is able to operate over and across any wireless network, including all commercial carriers, private networks and WiFi.

Mar. 21 -Release of Year-End Financials (2017) is scheduled for April 26, 2018

Apr. 12 -Receives $0.4M purchase order from leading Two-Way Radio Vendor.

Apr. 12 -Early Warning Report: PenderFund Capital Management Ltd acquired (2000 unit) of convertible debentures at a price of $1,000 per Debenture ($2M) - totaling 3.3M of convertibles SIM.V shares. As part of the debenture offering, PenderFund also received 2,M share debenture warrants (the "Debenture Warrants"). Each debenture warrant is exercisable at a price of $0.70 per share.

Prior the debenture acquisition, PenderFund held 4,3M shares and 1,7M common share warrants exercisable at. $0.50 cents . On March 23, 2018, PenderFund disposed of 92,200 shares bringing its holdings, as of the date of this news release, to 4,2M shares, 2,000 debentures (exercisable into 3,333,334 Shares) and 3,785,714 Warrants.

Apr. 19 -Receives global industry approvals for its Uniden® UV350 4G/LTE In-Vehicle Device. Government approvals including Federal Communications Commission (“FCC”) Google Android Compatibility Test Suite (“CTS”), PCS Type Certification Review Board (“PTCRB”), Conformité Européenne (“CE”) and Industry Canada (“IC”) for its Uniden® UV350 (“UV350”) device

Apr. 23 -Receives $0.65M purchase order from First Responders In addition to the original PO of $1.9MM announced December 20, 2017

Apr. 30 -2017 Earning: A record $17.7M in revenue, a 44% Increase Over 2016. 2017 North American Sales of $4.6M vs $2.8M in 2016 (64% YoY).

Year-end cash on hand of $4.38M and $9.7M in working capital.

May 2 -Beacon Securities maintains a "buy" and lowers the target to $0.85 from $1.20.

May 2- First purchase order from the hospitality industry for UR7 Rugged clamshell smartphone. representing a vertical/revenue stream.

In the last six months, SIM.V made some major advancements. It obtained approval from a number bodies (i.e. FCC, IC, CTS, PTCRB, and CE) for its Uniden® UV350 4G/LTE In-Vehicle Device. It secured distribution agreement with CNM Wireless LLC to provide logistics for its devices and accessories for Tier 1 US carriers. It received First Responders contracts valued over $2.5M and integrated the UR7 Rugged Clamshell Device with ESChat.

Additionally, SIM.V was able to expand in other verticals such as: government (municipality), security, and hospitality. SIM.V has also expanded its footprint internationally from Israel and France to New Zealand and Australia.

Even with good earnings for Q3, FCC and IC approval, and $1.9M First Responders order, a selling pressure ensued right after the $4M private placement culminating to a 52 week low of $0.36 cents after the Q4 earning. This is well represented in the chart with the CMF trend from .10 to -0.548.

There is no question that the amount of upcoming warrants are at issue along with 2017 earnings which did not meet the initial target of $20M.

Both these factors are putting a lid on valuation.

However, SIM.V is working on getting its device approval from a Canadian (Q3 2018) and an American (Q4 2018) telco carrier. If this occurs, this will change the current outlook. Based on the steps taken to date (sales, approvals, distribution, and software integration), the likelihood is promising.

Therefore, at the current price, we consider SIM.V to be still discounted.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


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