You could say it's a bit odd for a company to announce a big piece of news on a Saturday afternoon, but that's just what On4 Communications, Inc. (OTCPK:ONCI) did two days ago. Judging by the market reaction, others may want to consider the unorthodox timing of the press release. Shares of ONCI have climbed out of sub-penny range and are up 19.6% at $0.011 in early afternoon trading on Monday.
Compared to the $0.003 the stock was trading at on August 31, that's an impressive run of 266.7% for the New York City-based, pink sheet-listed holding company. By its own description, On4 has an "aggressive focus on acquiring proven and profitable businesses," with a particular focus on the health-care and mobile app industries. On4's first purchase in the ultra-competitive mobile app space was its 51% partner and mobile app maker FMS Marketing.
ONCI stock is popping from Saturday's news that the company signed a "major new contract" with a California car dealership. Details were vaguely written, but On4 says that the contract is for 25 dealerships in Los Angeles and Orange County, with each dealership taking 20 units per month at $200 per unit.
The company never actually says what a "unit" is, although it does go on to describe different mobile applications, one just recently named BSAFE MOBILE to avoid distracted driving and another named B-FOUND MOBILE, a tracking app currently taking pre-sales. Presumably, the orders are for one of these products.
Some golfing apps in beta testing and a breathalyzer-type app were also discussed briefly, as was an upcoming meeting with Enterprise Rent-A-Car that had to be rescheduled due to Hurricane Harvey.
On4 closed by saying that it will be releasing Q2 financials on Friday and that investors should be on the lookout for more revenue-generating contracts.
Perhaps they'll even tell the investment community what exactly it is that dealerships are buying.
