My colleague Alex Carlson put out this article about EP Global Communications Inc (OTCMKTS:EPGL) last year. For those who could not read the piece at that time, it was full of good predictions. This is what we wrote:
“EPGL is hoping to sign some deals, but so far has not. The company even issued a public notice that EPGL is now accelerating its program and bringing in new partners and investors to help develop its technology. EPGL will send a summary of its proprietary plan along with information about who has secured rights to its technology to any bonafide investor or partners who are interested in learning more.” “Over the next few months, we will be watching EPGL closely. If the company does deliver, shares could turn into a microcap runner real quick. “ Source
Thus, the company had worked hard to get investors and very recently found one. Just read this press release. It was put out on Jan. 31, 2017:
“In a joint statement, EPGL announces that it has received its third consecutive US Patent allowance in the field of ophthalmic technologies while start-up partner InWith Corp. announces it will make a bid to buyout EPGL.“ Source
In this article, we will tell you more about the buyer, InWith Corp. But, first have a look at the share price reaction:
The Company – Powerful Partners
For those who were too busy to check the previous article, let us provide some background. EPGL’s main objective seems to be owning and creating intellectual property. These are some of the patents and pending patents owned by the company and reported in its last 10-Q:
-Advanced Technologies for Contact Lenses
-Advanced Cell Regeneration Technology to Treat Eye Disease
-Advanced Cell Regeneration Technology to Treat Hearing Loss
-Advanced Platform Technology for Development of Smart Medical Devices
-Real-Time Sensor Technologies for Connectivity to a Global Network
-Real-Time Data Applications for Athletic Teams, Workforces and Military Forces.
How is the company able to create all these patents? The question can be answered by checking at the the team of Medical and Engineering professionals working for EPGL. Let us cite two of the Ph.Ds, all the others have similar profiles.
“-David T. Markus Ph.D (Company Vice President – BioMems Development): He has been involved in research for several world’s leading technological institutions, including the Office of Naval Research in Arlington, Virginia, NASA Jet Propulsion Laboratory in Pasadena, CA. His work has been published 15 times for various technical conferences.
-Eric Lee M.D.M.A.: Eric Lee M.D. M.A. graduated from Yale University and completed medical school at Boston University. He completed his residency in Physical Medicine and Rehabilitation at NYU Langone Medical Center, where he has continued with a Pain Medicine fellowship.” 10-Q
As we said in the very beginning of the article, EPGL tried to obtain money from investors and big partners. On April 12, 2016, it signed an agreement with Johnson & Johnson Vision Care, Inc. This big player in the contact lense market has acquired the right to be the first one for the negotiation of all the patents that the company has now pending in this field. Additionally, another investor CooperVision, Inc. reached an agreement in January 2016. These are the terms agreed:
“CooperVision, Inc. will retain rights and license to use the joint technology in their products in exchange for cash payment and EPGL receiving assignment of the IPand 100% ownership control and marketing rights worldwide. EP Global Communications, Inc., is a research and development company with focus on medical device design, ophthalmic medical device design, consumer electronic device design and device technologies in the IoT space.” Source
The company reached some other agreements that investors may find in the 10-Q. We cannot mention all here.
The most interesting news was announced on Jan 31, 2017. On that date, the market got to know that start-up partner, InWith Corp., would make a bid to buyout EPGL. InWith Corp., which is seeking $500 million in private funding, offered the following terms to EPGL’s shareholders:
“The offer will involve a choice for EPGL’s retail shareholders to be bought out in a cash price of up to 9.8 cents per share, or to receive approximately 125% of their current EPGL equity by percentage (total along with gifted shares) converted to InWith Corp. equity. The choice would be offered as “one or the other” to EPGL shareholders and they could make their choice individually from other shareholders. “ Source
The share price is $0.0409 as of May 18, 2017. This means that if shareholders would opt for the cash offered by the buyer, they would obtain a 120% return. We believe that market participants did not take the offer seriously, because the share price did not react after the information was published. InWith promised that it would put out a definitive offer, but we could not find it on the OTC Markets website. In our opinion, this situation may be seen as an opportunity by savvy individuals, who may buy waiting for a more serious bid confirmation.
Our previous article predicted exactly what happened a year later. Several partners and big investors got interested in the technology developed by EPGL and its team. Thus, the company has been able to sign deals in 2017, and has also received a bid from another player. If the bid is finally serious, shareholders may double their money. If the bid is not, the company has still the patents and the contracts with the other big partners. Hence, the investment symmetry looks good. To sum up, stay up to date on all that is happening with EPGL. The last spike in May could mean that the company is ready to spike again on any new developments. We will be updating our subscribers as soon as we know more. For the latest updates on EPGL, sign up below!
Disclosure: We have no position in EPGL and have not been compensated for this article.