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Lite Access making big strides with revolutionary connectivity technology
This year appears to be shaping up nicely for Toronto listed fibre optic specialist Lite Access Technologies Inc (CVE:LTE).
This week it has bolstered its coffers to the tune of over $20mln via its now closed bought deal financing.
The cash will be used to fund growth initiatives and for general corporate purposes.
The company issued over 9mln shares, including around 2.22mln to exercise the underwriters’ option in full and an oversubscription of 200,000 shares, at $2.25 per share, for gross proceeds of $20,452,500.
What does Lite Access do?
For the initiated, Lite Access is the world leader in air blown fibre and micro-trench solutions for fibre optic cable installation.
It cuts small micro-trenches in the road and uses compressed air to blow broadband fibre through the tubes.
Already tested and in use in the UK, Lite Access now also offers a slightly wider and much deeper cut made at depths ranging between 18 and 24 inches, four to six inches wide, which supports a uniquely designed microduct capable of high-fibre-count installation.
This is an alternative to the more invasive and more costly traditional trenching approach.
Contracts coming in….
The company has now started building its fibre optic network for the city of New Westminster in British Columbia, further showcasing its revolutionary narrow trench technology.
In February this year, the firm reported it had been awarded the $459,000 deal.
In the same month, Lite Access said its new South American partner - TEASA and Tilsit (T/T) – has been selected for a connectivity project in Panama.
T/T is a partnership between Paraguay-based TEASA and Uruguay-based Tilsit.
The Panama project is a 22km microtrench installation to be completed for a large multinational telecoms and Internet service provider.
It involves cutting a 30-centimetre trench in asphalt along an older road, which connects the original Panama Canal to an old United States gun battery, which is now being used to house Panama’s main Internet connection.
Completion of the project is expected by the end of March.
Pleased with sales growth in first quarter
Earlier in March, the firm recorded a more than doubling of its Total revenues in the first quarter of 2017 as well as a trebling of its gross margins. It said it was pleased with sales growth.
The company said total revenues jumped to C$1.8mln in the quarter ended December 31 against C$813,546 in the same period in 2015.
The first quarter gross margin was 29% versus 10% in 2015.
The net loss after taxes was C$358,728 compared with a net loss of C$306,273 a year earlier.
Back to profit for year to September 30
In January, the company revealed it generated comprehensive income of C$1.5mln in the year to September 30, swinging back to profit for the first time in two years.
In the previous year it recorded a C$1.6mln loss as it looked to increase its product offerings, while in 2014 it landed a more modest profit of C$31,000.
Assets mushroomed to C$10.4mln from C$4.2mln a year ago, while revenue jumped 12-fold to C$12.6mln from C$1mln.
Cash flow was king too. Total cash inflows from operating activities jumped to C$1,46mln from an outflow of C$693,959 in 2015..
Looking ahead to 2017 in January, chief executive Mike Plotnikoff said: “North American business should remain really strong for us, and maintaining our relationships in South Africa and the UK is obviously important..
“But we are also looking at new markets..,” he added.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/175627/lite-access-making-big-strides-with-revolutionary-connectivity-technology-175627.html
