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Bravatek Solutions Inc (OTCMKTS: BVTK) Is This Week's Microcap Runner

Bravatek Solutions Inc (OTCMKTS: BVTK) Is This Week's Microcap Runner
Written by
Jarrod Wesson
Published on
April 19, 2017
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Today, we are introducing a new company that has been running up the charts this week. It is called Bravatek Solutions, Inc. (OTCMKTS: BVTK) ("Bravatek"), which is a cybersecurity company that helps governments and other private institutions protect their systems. We appreciate this company not only because of the returns delivered during this week, but also because we have identified several hedge funds that acquired convertible securities recently and are waiting silently for the recovery of the stock.We will tell you more later, but firstly take a look at its chart and remark the large amount of shares exchanged; close to 4.5 billion shares in just a few days:SourceBusinessBravatek was incorporated to the State of Colorado on April 19, 2007. Its business is explained to the investors in the following way in the last quarterly report that we could find: "The company provides security, defense, and information security solutions, which asset corporate entities, governments and individuals in protecting their organizations and/or critical infrastructures against error, and physical and cyber-attack". The business objective looks quite ambitious.However, we read a little bit more documents and saw that the current operations of the company are focused mainly on "expanding its strategic marketing program of allied products". For those investors who are not used to read legal documents, the company is looking to buy products and services to be able to commercialize them. That is the reason we believe that we will see further acquisitions, such as the asset purchase agreement with Viking Telecom Services, LLC., which was a telecommunications services company that provided cellular tower mapping and audits and ground audits among other services. To sum up, Bravatek decided to buy other companies instead of growing organically from the beginning.In addition, the company has already developed its first software suite. It is called "Ecrypt One", an email server, designed to protect emails and files attached in communications. We believe that the product will bring revenues to the company, since it helps maintain compliance with new information security regulations, such as HIPAA. Read here if you want to know more about it.The fundsWe made our own research and found out that LG Capital Funding LLC, the hedge fund based in New York, gave the company money and obtained a position in the company that gives the right to own 9.899% of the total outstanding shares of the company. Additionally, Union Capital, LLC, also filed a filing under which it is shown that the company holds 9.99% of the company. This company is known as investment management firm, working for other institutions and private investors. Finally, Typenex Co-Investment, LLC also disclosed a stake in the company, but it was liquidated later in the year.Financing and balance sheetThe company is developing new products and buying other companies. In order to succeed, Bravatek will need to obtain financing from third parties. Since this is the key, we will revise here the way the company is doing it and the securities that it is selling:In the balance sheet, we see large amount of liabilities. Most of it is part of the investment provided by third parties. The company is using notes payables and convertible notes. Have a look:

  • Notes payable-related party (current): $400,000
  • Notes payable (long term): $350
  • Notes payable(current): $455,788
  • Convertible notes payable net of discount (current): $668,565
  • Convertible notes payable net of discount (long term): $127,885
  • Derivative liabilities: $2,613,518

In a note in the annual report, we could see that the derivative liabilities consist of convertible debt and warrants. We encourage you to check the annual report to see different types of convertibles used. On the top of it, the company also sold preferred shares of different type: A, B and C.Capitalized Research and DevelopmentThere is a very relevant information that we appreciated in this company: the capitalized research and development. The company was able to capitalize the research and development costs, and that is the key. The fact that the company was able to register this item in the balance sheet means that the company is doing a great job and it has future. These assets can also be sold out. As of December 31, 2015,the total amount registered is $41,950.ConclusionBravatek Solutions seems to be doing the right things. The intangible assets acquired and developed have been identified by institutional investors and they have provided BVTK with the capital needed to grow. In addition, the market seems to like what it's seeing from the company. Thus, new investors are coming into company and explains this week's run-up. We encourage investors to have a look at the new updates of the company and the stakes of other funds or to subscribe to our newsletter, since we believe there is more money to be made here.We will be updating our subscribers as soon as we know more. For the latest updates on BVTK , sign up below!Disclosure: We have no position in BVTK and have not been compensated for this article.

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