Last week GlobalWise Investments, Inc. (OTCBB: GWIV) announced that its wholly owned subsidiary Intellinetics, Inc., a leading-edge technology company focused on the design, implementation and management of cloud-based Enterprise Content Management systems in both the public and private sectors, had executed a new Channel Sales Partnership contract with B2B Computer Products, LLC. That announcement, made on Tuesday, pushed shares to a high of 1.80, a modest increase over Monday’s close of 1.70. By the end of the week shares had inched up to 1.83 and with a promotional campaign set to begin those shares could climb higher as the trading week begins today.
While GWIV share price has shown slight growth the company’s trading volume remains lackluster with a 20-day average of less than 8,000 shares moving hands. Obviously that could change significantly given the fact that GWIV has transitioned to a holding company and actually has an operating company, Intellinetics, capable of generating revenue. Looking back at GWIV’s most recent annual report published on January 31, 2012 there was no reason for investors to be interested in the company as they had $68 in cash and had not recorded revenues for the past two fiscal years.
In mid-February GWIV entered into a Securities Exchange Agreement by and between the company and
Intellinetics and pursuant to the terms of the Exchange Agreement all of the former shareholders of Intellinetics transferred to GWIV all of their shares of Intellinetics in exchange for the issuance of 28,034,850 shares of the company’s common stock, $0.001 par value, which represented approximately 86% of the GWIV’s total shares outstanding immediately following the closing of the transaction. Through this Share Exchange Intellinetics became a wholly-owned subsidiary of GWIV and it is the company’s belief that Share Exchange has caused them to cease being a shell company.
GWIV is now hoping they can put their struggles with revenue behind them and last Tuesday’s announcement regarding Intellinetics’ new Channel Sales Partnership contract with B2B Computer Products, LLC could go a long way in solving those problems as it allows B2B Computer to add the cloud-based Intellivue ECM software to its “vast array of service offerings and better serve its roster of over 24,000 clients.” Intellivue ECM software is the company’s flagship platform which they say “represents a new industry benchmark and game-changing solution by enabling clients to access and manage the content of every scanned document, file, spreadsheet, email, photo, audio file or video tape — virtually anything that can be digitized — in their enterprise from any PC, laptop, tablet or smartphone from anywhere in the world.”
According to Rob Ince, Business Development Manager for B2B Computer, “Enterprise Content Management offers a natural extension to the server and storage solutions B2B Computer provides its customers. As a hosted service, Intellivue™ can also complement our Managed Print Service offering by using Multi-Function Device printers for scanning. The shared device approach combined with the efficiency gains inherent in routing documents electronically with the Intellivue™ workflow capability will equate to a quick ROI for our clients.”
Just how much value Intellinetics will bring to GWIV remains to be seen but over the past two years the company has been advancing their position in the market, having integrated the Intellivue software platform into Lexmark, Samsung and Dell hardware printer products via OEM relationships, as well as successfully integrated the software with other enterprise software packages. This has expanded the company’s sales reach considerably and the formation of Channel Sales Partners has also opened the door for additional reach and revenue.
GWIV has seemingly made it their goal to capitalize in the underserved small-to-mid sized business marketplace and believes their Intellivue product line and unique Channel/OEM distribution model will put them in a position to dominate. Whether or not that is true is yet to be seen but without question there is a healthy market out there for ECM software as more and more companies demand solutions for their content management issues.
Knowing that the demand is growing means the competition in the market is just as crowded and GWIV will need to fight to keep their head above water. With shares nearing the 2.00 level they seem a bit pricey given the fact there has been no word on what kind of revenue Intellinetics is bringing in.