Airborne Wireless Network (OTCMKTS:ABWN) is a micro-cap stock that has been one of the true momentum favorites on the OTC in recent months. The stock has been all over the map in recent action, closing last week with a technical breakdown followed by a sharp rebound higher. The latter move came in reaction to big news from the company that it has been granted an experimental operating certificate by the Federal Communications Commission. Apparently, the FCC’s approval will allow ABWN to ground test and flight test its demonstration system, in the development of the Infinitus Super HighwayTM, the Company’s patented air-to-air communication system.
According to the release, the FCC’s approval allows the Company to conduct testing on the ground and over its intended flight test operating area near Roswell, New Mexico. The company notes that, as part of the tests, it will utilize two Boeing testbed aircraft and pass broadband data between each aircraft inflight and a ground station, “in a first of its kind air-to-air and air-to-ground meshed network link.” For those not familiar with this company, let’s take a birds’ eye look.
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 micro-cap 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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Jason T. de Mos, the Company’s Vice President of Business Development and Aviation Compliance, said, “This approval is a significant achievement in the testing and development of our Infinitus Super Highway. We believe our technology has the potential to become an important opportunity for improving and creating a global pipeline that takes connectivity beyond current limitations. We are very much looking forward to the test demonstration and bringing this new, highly innovative communications network system to market.”
Recent action saw a dip and then a 7% rebound in the stock to close last week. As noted above, the stock has been a monster, rallying as much as 400% in the past few months. In addition, the company has seen interest climb, with an increase in recent trading volume of 18% above the average volume levels in play in this stock over the longer term.
Traders should note this as important due to the tight float size in the stock (of 25.2M shares). Traders should not overlook this combination, as ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.
Now commanding a market cap of $190.3M, ABWN has a reserve ($690K) of cash last reported on the books, which compares with virtually no total current liabilities. 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!