If you’re looking for a left-for-dead special in the hi-tech space on the OTC, then Airborne Wireless Network (OTCMKTS:ABWN) could be right up your avenue. The stock has potential cutting-edge technology in-house but has run into trouble as a distressed play after the company hit the wires with news that it was pushing $8M out in dilutive convertible notes last month. The action has been straight to the downside ever since then, as one might suppose.
However, this week, we’ve started to see some bounce action. The movement back the other way has been catalyzed by the company’s announcement on Monday that it has successfully demonstrated the “integration of its proprietary flight control software with the Infinitus Super HighwaySMsystem hardware and GE AviationsInertial Navigation Units (INU) during aircraft simulation field testing utilizing the Company’s test platforms.”
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 in May 2016. ABWN was founded in 2011 and is based in Simi Valley, California.
According to company materials, “ABWN 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. The company intends is to be a high-speed broadband internet pipeline to improve coverage connectivity. ABWN 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.
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As noted above, the stock has been slaughtered in recent action following a major capital raise through potentially toxic convertibles. However, the action has possibly exhausted itself on the downside, and we are potentially seeing some new upside gain traction following the company’s announcement that it has successfully demonstrated the integration of its proprietary flight control software during some simulation field testing on its test platform.
Traders will note a bit more than -70% stripped out of the stock over the past week. Furthermore, the listing has seen a growing influx of trading interest, with the stock’s recent average trading volume running a bit over 1600% over what the stock has registered over the longer term.
According to the release, “The Company has developed proprietary algorithms that enable its flight control software to successfully interface with the GE INU and the Infinitus Super HighwaySMsystem hardware while increasing ABWNs software location abilities of two simulated aircraft in-flight. The field testing of ABWNs demonstration that the Infinitus Super HighwaySMsystem can pinpoint two aircraft in-flight to within just over one meter. The Company intends to conduct other simulations of aircraft in-flight using the Company’s test platforms which incorporate the Infinitus Super HighwaySMsystem hardware, the INU, and antenna prior to the upcoming Cessna plane test.“
Earning a current market cap value of $1.78M, ABWN has a bankroll ($205K) of cash on the books, which must be weighed relative to about $2.4M in total current liabilities. One should also note that debt has been growing over recent quarters. The company is pre-revenue at this point. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $ABWN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $ABWN, either long or short, and we have not been compensated for this article.