Intelligent Highway Solutions Inc (OTCMKTS:IHSI) reported that it has obtained a Private Equity Line Financing for up to $5 million. Devon Jones, the CEO said that this is great news for company’s shareholders and the timing of deal is perfect. This sort of financing is excellent for them as there is no toxic convertible mechanism attached to it. It provides the company with the needed funds to implement the business plans.
The plans
Intelligent Highway Solutions is trying to advance its state-of-the-art technology that enables vehicles, traffic lights and road signs to communicate wirelessly. The technology can make the traveling experience safer and pleasant. The company even intends to help the customers cultivate healthy yields of cannabis with its advanced lighting solutions.
The focus
Intelligent Highway main revenue source has been a project of establishing temperature control sensors in a building in Alameda. On first glance, the business appears to be doing well. After trending in a narrow range on Wednesday, the stock of Intelligent Highway jumped more than 30% in to close at $0.00170 in last trading session. The stock has been in focus after the company reported last week about a new purchase order from Honeywell International Inc. (NYSE:HON).
The momentum
The new purchase order will help the company to report strong revenues in the next quarterly report. At the end of 1Q2015, Intelligent Highway recorded cash reserves of $37,832. The current liabilities came at $2.22 million against current assets of $303,340. Investors were not delighted with the revenue of $183,274 and net loss of $438,598 in the reported period.
The company intends to release the financial report for the second quarter in the coming weeks. Investors are expecting strong numbers and any disappointment may trigger further sell-off in the stock. As of now, the only revenue source is Honeywell contracts with no update on execution time of new purchase order.
