Nicely tidied shell Apple Capital (ALE.V) came back to trading Friday with news it will be RTOing with Brazilian interactive design company YDreams, and with only 2.5m shares outstanding, it’s no surprise that it took off once trading resumed.
But the jump from $0.09 to $0.30 may have taken many by surprise.
I’ve been talking about YDreams for some time now, with the South American high tech firm having initially looked to roll into Oxford Resources (OXI.V) just before that group self-destructed. The new shell is nice and tight and squeaky clean, and a recent $1.5m financing was quickly snapped up.
Meanwhile, YDreams itself has been making moves in North America, having secured several small deals while continuing talks with professional sporting franchises, malls, and large corporations for their mind-blowing mix of software, hardware, interactivity and savvy ways to roll that all together into great marketing programs.
When YDreams roadshowed last year, some brokers weren’t entranced with the opportunity, paying too much heed to soft Brazilian financial returns and not factoring in that the Brazilian economy is fakakta, and that the products YDreams makes would go for an 8x multiple up here.
Now the company is showing just how valuable it can be in the bigger space, playing with their A-list of clients in US and Canadian dollars instead of Brazilian real, which has essentially halved compared to the CAN$ in the last few years.
I was excited by YDreams in 2015 when I first saw it. I’m no less excited today, having spent some time getting to know the team behind it and the massive catalogue of product they’re debuting to North American eyes.
Go read more about it in my earlier piece: HERE
And check out the clients on their show reel: Coca Cola, Audi, Petrobras, hotels, banks, there’s robots, 3D printing, the World Cup, the Olympics next…?
— Chris Parry