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Independent Reviews for Venture Investors

LTE.V - Confirmation.


Lite Access Technologies Inc. (LTE.V) uses innovative and proven trenching technologies, alternate methods of deployment and specialist products reducing the cost the network deployment for telecommunications operators.


LTE.V provides clients with integrated solutions, for the design and implementation of fibre optic networks. LTE.V's product have been deployed in multiple high-profile communication networks such as Olympic facilities, military, government, and educational institutions, as well as, in communities throughout the UK, the USA, and Canada.


In addition, global telecommunications companies that have adopted Lite Access as the "solution of choice" for the least invasive, most cost effective and future-proof fibre optic connectivity available.


Coverage was initiated on October 2020 with updates on July 2021. and March 2022.


News Releases


Mar. 28 - Close Private Placement Financing of $835,500: Closed its non-brokered private placement by issuing 8,355,000 units ("Units") at $0.10 per Unit (Warrant at 0.15 cents) for gross proceeds of $835,500


May 2 - Provides Operational Update: Brooks, Alberta: Phase 1 construction has started for Brooks' Next Generation Broadband Network. Phase 1 of the project, valued at approximately $13.6M.


Kootenay Region, British Columbia: involved in numerous network upgrades for major service providers. Total approximate value to date $150,000 with additional work to follow.


Lower Mainland, British Columbia: Working directly with cities that have approved and have requested narrow trenching. Lite Access was awarded a fibre build contract valued at over $150,000 from a major Canadian carrier.


Comox, Vancouver Island, British Columbia: The Company reports that it has completed the first phase of a fibre project in Comox. The Company is pleased to announce that it has been awarded the second phase of the project, valued at approximately $237,000. Work is currently underway with completion expected by end of May 2022.


May 30 - Reports Q2 2022 Financial Results: Second quarter revenues were negatively impacted by project delays and adverse weather conditions which decreased construction activities during the quarter. Additionally, higher labor and fuel costs contributed to higher construction costs, providing a formidable headwind.


June 6 - Announce Change of Officers and Directors: Greg Smith has resigned from his position as Chairman, Interim Chief Executive Officer and director, Steven King and Kevin Smith have resigned from their positions as directors.


Michael Plotnikoff has been appointed as Interim Chief Executive Officer and director, and Mark Tommasi has been appointed as director to fill the vacancies. Mr. Plotnikoff has 30 plus years' experience in the Tech & Telecom Industries to Lite Access. Mr. Plotnikoff was a founder and previous Chief Executive Officer of Lite Access until 2018.


June 13 - Announces Sale of AMEC CUTTING & CORING LTD. changes of Directors: Sold its non-core business, Amec Cutting & Coring Ltd. ("Amec"), to its former owner Tony Curkovic pursuant to the terms of a share purchase agreement dated June 9, 2022. The sale of Amec allows the Company to focus on its core business of network deployment, reduce overhead expenses, and strengthen the balance sheet.


The Company agreed to provide $80,000 of additional working capital to Amec and forgive intercompany indebtedness of $180,000. In consideration of the foregoing, the Purchaser agreed to forgive all amounts owed by the Company to the Purchaser under the Company's original acquisition of Amec on March 5, 2021.


The Company also announces that John Farlinger and Daniel Nanson have resigned from their positions as directors. David Toyoda will continue to serve on the Company's Board of Directors.


June 16 - Awarded Two Fibre Projects Worth Over $1 Million In The Comox Valley, British Columbia: The first project involves the supply and installation of fibre optic cable from the Water Treatment Plant to the Comox Valley Waste Management Centre (CVWMC). The second project includes the supply and installation of fibre optic cable from the West Courtenay Reservoir to the Comox Valley Regional District (CVRD) main office located at Harmston Avenue.


Both projects are scheduled to begin this month. The total contract value for both projects is $1,076,245.


June 27 - Receives Final UK Distribution Payment: The Company has received an approximately $335,000 final distribution payment from the UK business appointed administrator, FRP Advisory Trading Limited, with respect to the wind-up of Lite Access Technologies (UK) Limited ("LAT UK").


July 12 - Provide Corporate and Strategy Update:


Strategy: The recent changes enables to focus squarely on fibre deployment/telecom infrastructure as well as identify strategic partnerships that will position Lite Access as a solution of choice for broadband connectivity.


Management, Board, and Insider Ownership: Management is building an experienced team with the necessary skill sets and commitment to support the business strategy. Importantly, the newly formed board and management team have meaningful positions in Lite Access ensuring ultimate alignment of shareholder interests


Cash Burn: Management has continued to reduce cash burn through further cost cutting measures, focusing on its core business of network deployment and properly identifying its target market and respective customer base, will once again, help to ensure positive results designed to strengthen the balance sheet.


Sales, Pipeline and Contracts: Lite Access is focused on local projects and working closely with municipal partners. The Company is currently working on numerous projects ranging in size and scope within BC and Alberta.


July 26 - Sign Strategic Cooperation Agreement with Ironman Directional Drilling: Lite Access and Ironman will jointly provide their specialized fibre installation and directional drilling services on new fibre optic network projects.


July 29 - Announce the Appointment of New Directors: Mr. Alex McAulay and Mr. Mike Irmen to the Board of Directors. Alexander McAulay's firm, ACM Management Inc., provides fractional CFO and regulatory guidance to public companies. Mike Irmen has been the owner of Ironman Directional Drilling LTD for over 14 years.


The Company also announces that it has granted a total of 5,645,000 stock options to its directors, officers, and employees. The options were granted at a price of $0.10 per share and are exercisable for a period of five years.


Aug. 19 - Closes Strategic Cooperation Agreement with Ironman Directional Drilling: Lite Access and Ironman will jointly provide their specialized fibre installation and directional drilling services on new fibre optic network projects.

Highlights of Strategic Cooperation Agreement: i) Lite Access to receive operational strength of Ironman for new fibre optic network projects. ii) Ironman incentivized to refer new fibre installation projects to Lite Access. iii) Lite Access anticipates increased operational efficiencies and additional project flow resulting from its new relationship.


In consideration of Ironman agreeing to enter into this Cooperation Agreement, Ironman will receive a maximum of $400,000 over a period of up to three years through a profit sharing arrangement on Lite Access New Projects. The term of the Cooperation Agreement is for a period of three (3) years and may be terminated by either party on thirty days' notice provided that Ironman has received the $400,000 in payments noted above.


Lite Access issued a total of 2,265,440 common shares at a deemed price of $0.10 per share for total consideration of $226,554.00 to Ironman in order to settle certain amounts owed to Ironman.


Aug. 29 - Reports Q3 2022 Financial Results:


Aug. 30 - To Complete Fibre Upgrade Project Valued at $1.85M with Rigstar, For Saddle Lake Cree Nation, Alberta: along with Rigstar has been awarded the fibre build contract from the Saddle Lake Cree Nation located in the Onihcikiskwapowin region of central Alberta. Once completed the project will upgrade the existing internet and extend cellular infrastructure which will improve the resilience of the broadband and cellular connectivity.


Sep. 9 - Provides Update on Fibre Installation Contract with City of Brooks: As a result of ongoing reviews of all current projects by new management, it has been determined that due to today's environment and market volatility it is in the best interests of Lite Access shareholders to end the contract with Brooks and CNPI.


Oct. 3 - Awarded Next Phase of FTH Contract by Ktunxa Nation Council valued at approximately $805,000: LTE.V will continue with the construction project to include an additional 17kms of an in-ground backbone network, multiple highway road crossings, connectivity to a wireless tower via aerial and the installation of additional 37 service drops.


Nov. 10 - Announce Fully Subscribed $1M Financing: Non-brokered private placement financing of $1,052,000. The Offering consists of: (i) a private placement of secured convertible debentures in the principal amount of $500,000 (12% per annum, convertible at $0.07 cents); and (ii) 11,040,000 common shares ("Shares") at $0.05 per share for gross proceeds of up to $552,000 The Offering was subscribed for by insiders and key stakeholders of the Company.


Nov. 22 - Closed Private Placement of $1M: Insiders subscribed for a total of 1,000,000 common shares for aggregate gross proceeds of $50,000, and convertible debentures in the principal amount of $250,000.


Nov. 28 - Receive Approximately $500,000 Product Order and Provides Operational Updates: PO from TLC Solutions totaling $498,814.91 for the supply of product for First Nations projects located in Northern Alberta. This constitutes the first such sale in what the Company envisions to be a successful business partnership between Lite Access and TLC Solutions that will provide connectivity solutions for First Nations Communities throughout BC and Alberta.


LTE.V reports completing the following projects: the Saddle Lake Cree Nation located in the Onihcikiskwapowin region of central AB; Clearwater County, AB; third phase of Prince George, BC; and a local project for the City of New Westminster (see press releases dated August 30, 2022, and March 14, 2022). Additionally, Lite Access is actively working on awarded fibre projects in the Comox Valley on Vancouver Island, BC (see press release dated June 16, 2022); Phase 2 of the Akisqnuk FTTH project located in southeast British Columbia as well as continued work within the east and west Kootenay regions of BC for major service providers and long-standing clients.


Summary


Appointments

A re-organization took place on June 2022, Greg Smith Interim CEO and Chairman of the Board resigned along with Steven King and Kevin Smith as Directors. Michael Plotnikoff was appointed to replace Greg Smith as Interim CEO and Mark Tommasi was appointed to the board. Note that Mr Plotnikoff was a founder and CEO of Lite Access until 2018.


Within a few weeks (July 2022), John Farlinger and Daniel Nanson resigned but David Toyoda elected to continue as a Director. Subsequently, Mr. Alex McAulay and Mr. Mike Irmen were appointed to the Board of Directors. Alexander McAulay's firm, ACM Management Inc., provides fractional CFO and regulatory guidance to public companies. Mike Irmen has been the owner of Ironman Directional Drilling LTD for over 14 years.


Deals

Shortly after the appointment of Mr. Plotnikoff as Interim CEO, AMEC CUTTING & CORING LTD. was sold back to its original owner (June 2022). Reportedly the sale of AMEC enable LTE to focus on its core business of network deployment, reduce overhead expenses, and strengthen the balance sheet.


The Company agreed to provide $80,000 of additional working capital to Amec and forgive intercompany indebtedness of $180,000. In consideration of the foregoing, the Purchaser agreed to forgive all amounts owed by the Company to the Purchaser under the Company's original acquisition of Amec on March 5, 2021.


A Strategic Cooperation Agreement with Ironman Directional Drilling was signed and closed in August 2022..


In consideration of Ironman agreeing to enter into this Cooperation Agreement, Ironman will receive a maximum of $400,000 over a period of up to three years through a profit sharing arrangement on Lite Access New Projects. The term of the Cooperation Agreement is for a period of three (3) years and may be terminated by either party on thirty days' notice provided that Ironman has received the $400,000 in payments noted above.


Lite Access issued a total of 2,265,440 common shares at a deemed price of $0.10 per share for total consideration of $226,554.00 to Ironman in order to settle certain amounts owed to Ironman.


UK Liquidation

Lite Access received $335,000 a final distribution payment from the UK business appointed administrator, FRP Advisory Trading Limited, with respect to the wind-up of Lite Access Technologies (UK) Limited ("LAT UK").


Engagements

Brooks, Alberta: February 2022, a $13.6M contract was awarded. However, after the re-organization, Lite Access proceeded to end of contract with Brooks and CNPI amicably to due inflationary factors (September 2022),

Comox, British Columbia: April 2021, signed a contract with a city on Vancouver Island as the sole source for fiber optic construction and installation work for a period of 5 years. June 2022, Two Fibre Projects (>1$M) in Comox Valley were announced. As part of the last update (November 2022), the work is still ongoing.


The Ktunaxa Nation Council, Cranbrook, British Columbia: Awarded Next Phase of FTH Contract by valued at approximately $805,000: (October 2022), as of the last update (November 2022) work is still ongoing.


TLC Solutions, Northern Alberta: $0.5M in Product order (November 2022) was received.


Clearwater County, Alberta, Prince George, British Columbia and City of New Westminster: these project has been reported being completed (November 2022). Additionally, the Fibre Upgrade Project $1.85M with Rigstar for Saddle Lake Cree Nation, Alberta (August 2022) was also reported as being completed in November 2022:


Earnings

Due to the termination of the UK operations earnings have been re-stated to reflect continuing operations activity.


On January 26, 2021, the UK business officially appointed FRP Advisory Trading Limited as administrators. Accordingly, the Company no longer has control over the UK business as of the date of the appointment of the administrators. As a result, LAT UK financial results have been classified as a discontinued operation as at March 31, 2021. Certain prior year comparative figures have been reclassified to compare with the current year presentation.

After exiting the UK Market, Lite Access continues to deliver consistent earnings. However, thus far in FY 2022, revenue performance has not improved, but net losses from continuating operations are starting to turn the corner.


The final distribution from the UK, The sales of AMEC after the acquisition, and the discontinuation of the Brooks, Alberta engagement ($13.6M), the largest contract of the company history in Canada, have not helped.


Financing

March 2022, a $1M financing at $0.10 cents (Warrant $0.15 cents) was initiated. The company raised $0.83M.


Recently (October 2022), a non-brokered private placement of $1M was initiated consists of: (i) a private placement of secured convertible debentures in the principal amount of $500,000 (12% per annum, convertible at $0.07 cents); and (ii) 11,040,000 common shares ("Shares") at $0.05 per share for gross proceeds of up to $552,000 . The deal closed within two weeks with Insiders participation; 1M shares for $50,000, and convertible debentures of $250,000.


Options

July 2022, Lite Access granted a total of 5,645,000 stock options to its directors, officers, and employees. The options were granted at a price of $0.10 per share and are exercisable for a period of five years.


In short

Thus far, FY2022 developments can be characterized as eventful. The re-organization, the sales of AMEC and strategic agreement with IronMan Directional Drilling along with the cancelation of Brooks project ($13M) were noted.


It is still too early to determine whether these changes implemented have lead to better outcomes. However, the new board and management team have reportedly meaningful positions and are aligned with shareholders interest.


Still issue remains. The total addressable market in Western Canada has not been defined by LTE.V. In addition, no backlog numbers and/or revenue projections are provided. Also, investor presentation continues to be absent.


While Federal and Provincial Government Funding ($2.75B Universal Broadband Fund; $830M British Columbia and $39M in Alberta) could be catalysts for the company going forward, the extent of it remains unclears. Nonetheless...


I firmly believe Lite Access is particularly well-positioned for sustainable growth given our increased execution capabilities and operational improvement, combined with the strong industry outlook as Canadian market and business conditions continue to improve. The telecom network infrastructure industry is expected to undergo exponential growth to meet the consumer demand for high-speed internet access. We believe we have all the ingredients to steadily improve and remain optimistic in our outlook for the rest of 2022 through hard work and determination.” - LTE.V's CEO


Otherwise, there are 8.9M warrants are present at $0.15 cent from the March 2022 financing.

With the recent financing, $500,000 worth of debentures are convertible at $0.07 cent and $0.10 cents. This is in addition to the recent 5.6M options granted at $0.10 cents a share for the next five years.


Overall, it is yet again a new start for Lite Access after multiple turbulent chapters. However, the current valuation (5 years low) seem misaligned with the industry's outlook. FY 2023 should provide some confirmation.

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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