Hey there, thanks for checking out my idea! If you have seen my idea on 2300%+ return on HIVE @ $.30, then you will surely enjoy this one regarding TSXV:AZN (previously MILE.V). Seeing the surge in attention for my HIVE post means to me people are looking for more high-value investments signalling through price analysis and backed by fundamentals.
This is not a solicitation or recommendation to invest. Please remember to manage your risk and do your own due diligence. Investing is risky.
Price Analysis:
We consolidated at the .005-.01 range throughout December before slowly breaking out in January and spiking up to $.12 in February. We have since pulled back to a support of $.06 at the 20 EMA on the hourly timeframe. We could see a further pullback and/or consolidation to as low as $.04 before continuing upward.
Hourly Timeframe:
Who, What, Why - TSXV:AZN
AZN Capital Corp, previously Last Mile Holdings, previously Ojo Electric, is a Light EV micromobility company with the largest EV suite in the industry. Their acquisition of Gotcha Mobility in
February 2020, combined through their existing Ojo Electric business, strengthened them to be a leading presence at over 20 universities and 40 municipalities during 2020. Unfortunately, Covid struck shortly after, leading to nationwide school closures and lockdowns.
Despite this, outlook was bullish as consumers were looking for socially distanced ways to get around in a pandemic, leading to a 200%+ increase in riding minutes, from 416,600 minutes in January to 1,315,000 minutes in May, in contrast to only increasing fleet size by 17%. The Company's success led them to raise $7.8million in capital over the summer to push for aggressive fleet expansion, including ~$2.2million from then-Chairman Louis Lucido.
The Company may have grown too fast for it's own good, as it has been recently working with Rock Creek Advisors to free up capital and repay debts, leading to the strategic sale of the Gotcha and Ojo brands and assets to the BOLT micromobility brand in January 2021. Unfortunately, AZN still requires ~$6million more in capital to service their short-term liabilities, according to their most recent Interim filing.
So what now? Why buy into a sinking company?
Rock Creek Advisors specialize in financial turnarounds and has been in search of firms interested in AZN's assets, leading to BOLT's purchases. Another cash injection to cover short-term debts, ideally via long-term loan rather than bought deal of new shares, could put us on sound financial footing.
At the moment, investors have assumed that AZN Capital Corp will continue into the Light EV micromobility market, however, the Company has changed its categorization from Transportation to Industrials and Business Services. A press release from the Company stating direction will give us more clarity in the Company's future.
AZN Capital Corp's aggressive growth strategy is it's strong point. Whether AZN enters back into the EV market or enters a new industry, I believe in the Company's ability to identify, utilize, and enhance a company's strengths to build it into an industry-leading powerhouse.
My research has placed ~25% of float held by institutions or insiders, out of ~202million units.
While Louis Lucido resigned from Chairman recently, it is worth noting that he has yet to sell his position.
Thanks for reading my idea! This play is speculative in nature as we have no info on the future of the company while it is in bad financial footing. Remember to do your own research, do your own DD, invest at your own risk.
sources:
www.sedar.com/D...anyDocuments.do?lang=EN&am...
simplywall.st/stocks...n/azn-capital-shares
This is not a solicitation or recommendation to invest. Please remember to manage your risk and do your own due diligence. Investing is risky.
Price Analysis:
We consolidated at the .005-.01 range throughout December before slowly breaking out in January and spiking up to $.12 in February. We have since pulled back to a support of $.06 at the 20 EMA on the hourly timeframe. We could see a further pullback and/or consolidation to as low as $.04 before continuing upward.
Hourly Timeframe:
Who, What, Why - TSXV:AZN
AZN Capital Corp, previously Last Mile Holdings, previously Ojo Electric, is a Light EV micromobility company with the largest EV suite in the industry. Their acquisition of Gotcha Mobility in
February 2020, combined through their existing Ojo Electric business, strengthened them to be a leading presence at over 20 universities and 40 municipalities during 2020. Unfortunately, Covid struck shortly after, leading to nationwide school closures and lockdowns.
Despite this, outlook was bullish as consumers were looking for socially distanced ways to get around in a pandemic, leading to a 200%+ increase in riding minutes, from 416,600 minutes in January to 1,315,000 minutes in May, in contrast to only increasing fleet size by 17%. The Company's success led them to raise $7.8million in capital over the summer to push for aggressive fleet expansion, including ~$2.2million from then-Chairman Louis Lucido.
The Company may have grown too fast for it's own good, as it has been recently working with Rock Creek Advisors to free up capital and repay debts, leading to the strategic sale of the Gotcha and Ojo brands and assets to the BOLT micromobility brand in January 2021. Unfortunately, AZN still requires ~$6million more in capital to service their short-term liabilities, according to their most recent Interim filing.
So what now? Why buy into a sinking company?
Rock Creek Advisors specialize in financial turnarounds and has been in search of firms interested in AZN's assets, leading to BOLT's purchases. Another cash injection to cover short-term debts, ideally via long-term loan rather than bought deal of new shares, could put us on sound financial footing.
At the moment, investors have assumed that AZN Capital Corp will continue into the Light EV micromobility market, however, the Company has changed its categorization from Transportation to Industrials and Business Services. A press release from the Company stating direction will give us more clarity in the Company's future.
AZN Capital Corp's aggressive growth strategy is it's strong point. Whether AZN enters back into the EV market or enters a new industry, I believe in the Company's ability to identify, utilize, and enhance a company's strengths to build it into an industry-leading powerhouse.
My research has placed ~25% of float held by institutions or insiders, out of ~202million units.
While Louis Lucido resigned from Chairman recently, it is worth noting that he has yet to sell his position.
Thanks for reading my idea! This play is speculative in nature as we have no info on the future of the company while it is in bad financial footing. Remember to do your own research, do your own DD, invest at your own risk.
sources:
www.sedar.com/D...anyDocuments.do?lang=EN&am...
simplywall.st/stocks...n/azn-capital-shares
Comment:
Imminent.
