Inventergy Global Inc (OTCMKTS:INVT) is trading its first day today off the NASDAQ. The company was delisted because it could not maintain a minimum $2.5 million in stockholders’ equity. The Silicon Valley company believes they are in compliance because their stockholders’ equity is estimated at $7.2M. Nonetheless, INVT is trading on the OTC under the same ticker.
Some analysts are watching for a bull run here. INVT restructured its debt and cleaned up its balance sheet last month (which I will dive into later). INVT bills itself as an intellectual property company with a fresh perspective on the industry and believes that telecoms can get their real value without “cease and desist” letters.
Inventergy Global Inc (OTCMKTS:INVT) according to the company, is dedicated to identifying, acquiring and licensing the patented technologies of market-significant technology leaders. Led by IP industry pioneer and veteran Joe Beyers, the company leverages decades of corporate experience, market and technology expertise, and industry connections to assist Fortune 500 companies in leveraging the value of their innovations to achieve greater returns.
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In May, INVT announced the completion of the a restructuring agreement with their senior lender, an entity owned by funds managed by Fortress Investment Group LLC. In connection with the restructuring, Inventergy assigned its 740 telecommunications patents to INVT SPE LLC, a special purpose entity controlled by an affiliate of Lender as the managing member, who has sole discretion to make any and all decisions relating to the patents and related monetization activities, including the right to license, sell or sue unauthorized users of the patents.
Beyers, INVT CEO, said, “The completion of the restructuring is an important milestone for the Company, as it eliminates the structured debt from our balance sheet, reduces our quarterly expenses by approximately $1.3 million, and allows us to increase our focus on the many outstanding opportunities we have in our Inventergy Innovations business.” He continued, “We are excited with the prospect of sharing in future net monetization revenues from the patents held by INVT SPE LLC. This revenue share, our significantly reduced cash burn rate, and the opportunities for our Inventergy Innovations business will enable us to increase value for our stockholders.”
If you are unfamiliar with INVT, back in 2013 they acquired over 180 patent assets from Huawei Technologies Co. related in IP Multimedia Subsystem and Voice over IP (“VoIP”) telecom infrastructure technologies back in May of 2013. Management expanded these holds by acquiring an additional 500 or so patent assets related to 3G and 4G mobile communications
The company’s “corporate licensing” style of engagement – rather than “shot gun” style litigation – leverages its industry relationships, reputation, and model to engage with potential licensees via sensible business discussions. In particular, the strategy seeks reasonable value rather than nuisance value for its patent assets, which encompass many fast-growing areas of the telecom industry.
Last week, still on the NASDAQ, Inventergy Global Inc (OTCMKTS:INVT) stock volatility was recorded at 38.67% which for the previous full month was noted 21.77%. INVT is a stock to keep an eye on this week and many see this as a stock with lots of room to grow. As it trades on the OTC today, watch how the market moves and see if its upside starts to come out through volume. The company is currently carrying a market cap of 2.01M and might be marked with some strong volatility this week, so be on the lookout. For continuing coverage on shares of $INVT stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!