Airborne Wireless Network (OTCMKTS:ABWN) is a penny stock that has grabbed hold of the attention of traders during the stock’s recent bounce. The company just announced that it has entered into an agreement with Electric Lightwave Holdings, Inc. According to the PR piece, “This agreement creates a mutually beneficial relationship pursuant to which the ground segment of our contemplated Infinitus Super Highway will be supported by Electric Lightwave’s 12,500-mile fiber optics cable and data center network, which is located throughout the Western United States, including an undersea cable link to the Hawaiian Islands.”
Traders will note 88% tacked on to share pricing for the name in the past month, a rally that has pushed up against longer standing distributive pressure in the stock. The situation may be worth watching. ABWN has a history of dramatic rallies. What’s more, the listing has benefitted from a jump in recent trading volume to the tune of just shy of 270% above the average volume levels in play in this stock over the longer term. This is particularly important with a float in play that’s very limited — of 29M shares. As savvy traders are well aware, with such a tight trading float, this kind of ramping interest can force a supply-shock squeeze.
Airborne Wireless Network (OTCMKTS:ABWN) trumpets itself as a company that focuses on developing, marketing, and licensing a wholesale fully-meshed high-speed broadband airborne wireless network.
This network will enable participating aircraft to act as airborne repeaters or routers, sending and receiving broadband signals from one aircraft to the next creating a digital superhighway in the sky. The company is involved in developing Infinitus, an airborne broadband network providing connectivity for worldwide broadband carrier services using commercial aircraft. It intends to sell wholesale bandwidth to the telecom and Internet service providers.
The company was formerly known as Ample-Tee, Inc. and changed its name to Airborne Wireless Network in May 2016. Airborne Wireless Network was founded in 2011 and is based in Simi Valley, California.
According to company materials, “Airborne Wireless Network intends to create a high-speed broadband airborne wireless network by linking commercial aircraft in flight. Each aircraft participating in the network will act as an airborne repeater or router sending and receiving broadband signals from one aircraft to the next creating a digital superhighway in the sky. Airborne Wireless Network intends is to be a high-speed broadband internet pipeline to improve coverage connectivity. Airborne Wireless Network does not intend to provide retail customer coverage to end users, but, instead, will act as a wholesale carrier with target customers, such as internet service providers and telephone companies… Currently, the world’s connectivity is achieved by use of undersea cables, ground based fiber and satellites. Airborne Wireless Network believes that Airborne Wireless Network’s airborne digital highway is the logical solution to fill the world’s connectivity void. Once the network is developed and fully implemented, its uses are limitless. Airborne Wireless Network, once developed, should provide low cost, high-speed connectivity to rural areas, island nations, ships at sea, oil platforms, in addition to connectivity to commercial and private aircraft in flight.”
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As noted above, the company has announced that it has entered into an agreement with Electric Lightwave Holdings, Inc.
Our sense is the company believes the agreement to be material to their longer-term success, as they note it provides access to strategic properties on which “we may construct our ground stations. With this agreement, we have moved closer toward creating the Infinitus Super Highway.”
Jason T. de Mos, Vice President of Business Development and Aviation Compliance, said, “This agreement will allow our contemplated Infinitus Super Highway™, once implemented, to reach the end users. Without a ground link, users would have no way to access our network. This agreement with Electric Lightwave Holdings, Inc. provides that initial link to the ground, paving the way for ground segment partnerships for the remainder of the United States.”
Also, pursuant to this agreement, Electric Lightwave has agreed to assist the company with introductions and other support and advisory services “during our testing phases through and including final system rollout.”
On November 30, 2016, Zayo Group Holdings, Inc. announced it has entered into an agreement to acquire Electric Lightwave, formerly known as Integra Telecom, for $1.42 billion in cash. According to the release, the company does not believe that Zayo’s acquisition of Electric Lightwave will affect the agreement with Electric Lightwave.
Now commanding a market cap of $105.2M, ABWN has virtually no cash on the books, which is balanced by about $101K in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. We will update the story again soon as developments transpire. For continuing coverage on shares of $ABWN stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!