SIM.V: Algorithmic grind.


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 2017 with additional notes on June 2017, July 2017, October 2017, November 2017. May 2018, October 2018 and April 2019. Below is an update of its activities since our last note.


Jan. 16 - Launches UV350 in Sweden and Receives First Purchase Order. Received its first purchase order to supply heavy trucks, forestry, logistic companies, and more. Anticipates further launches in additional countries in 2020.

Jan. 14 - Appoints Jamie Kitson as VP Sales Canada.

Jan. 6 - Appoints Jason DePue as US VP Sales.

Dec. 24 - Closes Private Placement of CDN$7,866,000 in Unsecured Convertible Debentures. The Convertible Debentures included new subscriptions for $4,547,000 in principal amount; Each $1,000 in principal amount of Convertible Debenture is convertible, at the option of the holder, into 2,222 common shares in the capital of the Company (the “Common Shares” and each, a “Common Share”) at a price of CDN$0.45 (the “Conversion Price”) per Common Share, subject to standard adjustment in certain events.


In consideration of the services to be provided by the Agents, the Company paid a cash commission of $302,375.50 and granted the Agents an aggregate of 728,616 common share purchase warrants (each, a “Broker Warrant”). Each Broker Warrant entitles the holder to acquire an additional Common Share (each, a “Broker Warrant Share”) at a price of CDN$0.415 per Broker Warrant Share on or before December 23, 2021.

Dec. 19 - Uniden® UV350 Now Available via Ingram Micro for The Two Leading Carriers in the U.S. Ingram Micro is one of the largest telecom distributors in the US which allows Siyata to ensure that its products are made available across the nation for first responders and commercial fleet vehicles. We believe with these Tier 1 carriers and distribution channels now in place, the Company is in a position to significantly grow its revenue in 2020.

Dec. 16 - Receives $900K in Purchase Orders for 4G/LTE Push-to-Talk Over Cellular Devices. One order from a new customer totaling over $600,000 to equip their connected vehicles with Siyata’s 4G/LTE in-vehicle solutions.


An additional $300,000 order was received from first responder contracts, increasing the total purchase order from this customer to over $3.25M since delivery commenced in 2018.

Dec. 11 - Partners with Tango Tango, a FirstNet Certified™ Application and Service Provider. Tango Tango (Tango) uses advanced networking, mobile and cloud technologies to leverage LTE and WiFi networks and expand the radio coverage and capabilities of public safety agencies. With the Tango application, smart devices can integrate with any existing radio system, creating seamless interoperability across agencies, regardless of carrier. It allows users real-time, two-way communication on any authorized channel, on any device and sends messages to both radios and smartphones.

Dec. 10 - Receives $450,000 Purchase Order to Equip Bus Fleet with its Uniden® UV350

Dec. 6 - Appoints Richard Hoy to its Board of Directors.

Dec. 4 - Announces Brokered Private Placement of up to CDN$10 Million in Unsecured Convertible Debentures. The Company will offer up to 10,000 Convertible Debentures at an issue price of CDN$950.00 per CDN$1,000 principal amount of the Convertible Debentures. Each Convertible Debenture will be convertible, at the option of the holder, into 2,222 common shares in the capital of the Company (the “Common Shares” and each, a “Common Share”) at a price of CDN$0.45 (the “Conversion Price”) per Common Share, subject to adjustment in certain events.

Dec. 2 - To Be Major Supplier in Large Government Tender for Push-to-Talk Over Cellular (“PoC”) Devices. Pleased to announce the Company will be the main supplier of a closed government tender to deliver up to 15,000 Push-to-Talk Over Cellular (“PoC”) devices for various government agencies. Dependent on the total units and mix between rugged handsets and in-vehicle devices, the tender is valued from $3M to $5M; anticipated for delivery in the first half of 2020.

Nov. 26 - Wins Minimum $1.8 MM Tender to Equip Taxis with CP250 In-Vehicle Smartphone. The customer will equip its taxis with the Company’s innovative 4G/LTE CP250 in-vehicle smartphone, with potential to increase the order by an additional 50%.' The Company will begin delivery of the CP250 in Q4 2019.

Nov. 21 -Receives Network Approval from Additional Tier 1 U.S. Cellular Carrier for Uniden® UV350 In-Vehicle Smartphone. Commercial launch of the UV350 is anticipated shortly with this Tier 1 U.S. cellular carrier. (Verizon)

Nov. 18 - Receives $950,000 Purchase Order for Uniden® UV350. Order was from a US distributor servicing cellular carriers, first responders and commercial fleets.

Nov 15 - Reports $5.0M in Q3 2019, a 61% Increase over Q3 2018.

Nov. 14 - CrisisGo Bring Instant Emergency Communications Solution to the Nation's Yellow School Bus Drivers Uniden® UV350 in-vehicle smartphone has integrated with the CrisisGo emergency alert and communication system.

Nov. 12 - Receives $800,000 in Purchase Orders. For its UV350, CP250 and CP100 in-vehicle cellular devices through Tier 1 Carriers and distributors for a variety of end-use customers.

Oct. 29 - Report Q3 2019 on November 14th, 2019 and Schedules Conference Call.

Oct. 24 - Launches Uniden® UV350 In-Vehicle Cellular Device at Leading Canadian Cellular Carrier. Flagship Push-to-Talk LTE Uniden® UV350 in-vehicle device is integrated with Nova Talk, a leading enterprise PoC solution.

"Rogers offers a full range of products and solutions for business customers including the new Push-to-Talk LTE Uniden® UV350 in-vehicle device,” said Tom Jolly, Vice President, Product Management, Rogers for Business.

Sep. 30 - Announces Leading Taxi Technology Distributor Increases Purchase Order to Over $850,000. Received an additional purchase order from a leading taxi technology distributor. As previously announced on July 22, this customer’s original purchase order of $360,000 has been increased to total over $850,000.

Sep. 19 - Receives $800,000 Purchase Order for its UR7 Rugged Clamshell Handset.

Sep. 16 - Begins Integrating Uniden(R) UV350 Functionality with U.S. Automobile Manufacturer. The integration is geared towards providing commercial vehicle drivers increased functionality, crystal clear sound quality, with fewer hardware accessories inside the vehicle cabin, allowing drivers to keep their eyes on the road and hands on the wheel.

Sep. 11 - Announces US County Increases Uniden® UV350 Purchase Order to Over $1.0 Million. Received an additional purchase order from its first US customer to equip their fleet of yellow school buses with its Uniden® UV350.


Furthermore, the county will begin trialing the UV350 in additional first responder verticals within the county to benefit from unified communication on a dedicated first responder nationwide cellular network.

Sep. 9 - Starts Large-Scale Trial with Global U.S. Ridesharing Company. Completed software integration and has received its first purchase order to commence large scale device trials in the field with a global ridesharing company.

Sep. 5 - Wins Major Contract from Leading Canadian Heavy Construction Company for UV350 In-Vehicle Smartphone. An initial $200,000 contract to supply its Uniden(R) UV350 in-vehicle smartphones. The company will begin delivering from Q3 and expects additional orders in the coming quarters.


Aug. 30 - Reports Q2 2019 Results, Hosting Investor Conference Call Tuesday September 3rd, 2019


Aug. 29 - Closes $3MM Strategic Private Placement.

Aug. 20 - Announces $3M Private Placement with Strategic Investor. Total of 7.5 million units at a price of $.40 cents per unit with one strategic investor. Each unit will consist of one common share and one half warrant at $.60 cents.

Aug. 19 - Receives $400,000 Purchase Order for First Responder End-Use Customers.


Aug. 14 - Completes Network Approval for Uniden® UV350 with Second Canadian Tier 1 Cellular Carrier. Q3 Launch.

Aug. 12 - Demonstrate UV350 Running Motorola WAVE PTT at APCO 2019.


Aug. 8 - Receives $300,000 Software Contract to supply software to various enterprise customers through a leading cellular operator. “Part of our strategy is to sell third party software applications in conjunction with our devices and we are pleased to announce this meaningful software deal".

Aug. 7 - AT&T Workforce Manager and AT&T Enhanced Push-to-Talk Available on Siyata Mobile UV350.

July 31 - Equip Government Vehicles in Australia as Part of a Cellular Vehicle-to-Everything (C-V2X) Pilot Program.

Received a purchase order from a distributor to equip various government vehicles in Australia with the CP250 in-vehicle cellular device as part of a Cellular Vehicle-to-Everything (C-V2X) pilot program.

July 29 - Launches UV350 with Leading National Saudi Arabia Cellular Operator. Initial Purchase Order of $130,000 for UV350 Received to Equip Single End-Use Customer in Growing Saudi Arabia Commercial Vehicle Market. Estimated 700,000 new commercial vehicles projected to be on the road by the year 2022 in KSA.

July 24 - Launches Uniden® UV350 Desktop Dispatch Unit for Instant Communication to In-Vehicle and Mobile Enterprise Workforce. The DDU is now available through carriers/distributors in the United States, Canada and Israel.

July 22 -Receives $360,000 Purchase Order to Equip Taxis with CP250 All-in-One Communications Device.

July 17 -Receives $700,000 Purchase Order For Single End-Use Customer To Equip Mobile Workforce and Vehicle Assets

July 16 - Receives US Purchase Order for its Uniden® UV350 4G/LTE In-Vehicle Device Valued at $925,000.

First Major Order Received for Single End-Use Customer to Equip Yellow School Buses in the United States

Jun. 4 - Launches Uniden UV350 at AT&T and FirstNet.

May 23 - Reports $3.04M in Q1 2019.

May 2 - Launches UR7 and CP250 In-Vehicle Device with Partner Communications Company Ltd.


Apr. 29 -Reports 2018 Year End Results and Hosts Year-End Investor Call, April 30th, 2019 at 9:00AM EDT

Apr. 23 -Leading Israeli Cellular Carrier, Pelephone, Launches Siyata Mobile's UV350 and UR7 .

Summary

In the last period, SIM.V went from $0.56 cents to $27 cents and even managed to score a new 52 week low ($0.26 cents).


During that time the company launched the Uniden UV350 on Pelephone (Israel), AT&T, Verizon, and Rogers. It also made it available in new markets such as Saudi Arabia and Sweden. To date, SIM.V announced orders with Distributors, School Buses, Taxi , Industrial and Commercial Fleet among other end clients. It is also reportedly undergoing trial with a US Ride Sharing Company, and integrating UV350 functionalities with a US Automobile Manufacturer.


SIM.V also launched Desktop Ditchpatch Unit (UV350), and integrated it with AT&T Workforce and Enhanced AT&T Push to Talk, as well as, proprietary software such as CrisisGo along with partnering with Tango Tango. In addition, SIM.V also received a $0.3M Software Contract from a number of Enterprise clients.


Displayed below, the earnings to date in 2019 (un-audited) for Q1, Q2, and Q3 reflect roughly $10M in revenue year to date (40% less than 2018). However, the performance in Q3 was almost better than Q1 and Q2 combined. Furthermore, the Comprehensive Loss to date are $5.72M (57% less than 2018).

Since then, the company has announced a number of purchase orders: $0.95M (Nov. 18), $1.8M (Nov. 26), $3M-$5M (Dec. 14), $0.45M (Dec. 10) and $0.9M (Dec.16). Excluding Dec.14 order, the total is $4.1M which could meet FY 2018 earnings.


Hence, it comes to no surprise that Stonegate Capital Partners initiated coverage on November 8 with a target of $0.97 ($0.70 to $1.43) and Fundamental Research revised its target on Dec. 3 (from $1.27 to $1.14). Paradigm? Beacon? Unheard.


Indeed, a Market & Markets study illustrates that PTT is set to grow from $25B (2019) to $38.4B in 2024; 9% CAGR.


Furthermore, the study specifies that North America is the primary market. To date, SIM.V is already working with major players such as AINA Wireless, AT&T, Verizon, Bell Canada, and Rogers. Listed below are others to watch for.



Yet valuation remains weak. Yesterday. SIM.V closed at $0.28 cents, representing 44% less than the closing price of April 29, 2019 when it reported its annual earnings. Financing does have a role to play here. In August 2019, SIM.V raised $3M from a strategic investor ($0.40 cents; Warrant $.60 cents) and announced on December 4th a $10M in Unsecured Debentures convertibles at $0.45 cents (Brokers shares: $0.415 cents) and raised $7.8M of it. As depicted by the above chart, this definitely put some downward pressure on the stock price from which recovery is yet to be seen.


However, if one look at Level II activity from January 2, 2020 - a clear pattern emerges. Other than Mackie, large Canadian Banks have been buyers but on the sell side, Anonymous account for 54% of the total sellers.

In fact, Anonymous sell transactions have a mean of 2,974 shares, with a median value of 1000 shares and a mode of 500 shares. Hence, SIM.V valuation continues not to reflect its achievements to date as it is confined to an algorithmic grind.

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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