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1PM Industries Inc (OTCMKTS:OPMZ) Is Today's Small Cap Focus

1PM Industries Inc (OTCMKTS:OPMZ) Is Today's Small Cap Focus
Written by
Alex Carlson
Published on
March 15, 2017
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1PM Industries Inc (OTCMKTS:OPMZ) has been one of the most active names on the OTC Markets this month after the company announced a new business model. Shares were sitting in the basement at $.0017 before blasting off and hitting the one cent mark. Investors that got in before the news are sitting on gains of over 400%. This type of action really gets penny stock traders excited and why we're taking a closer look at OPMZ.First up, a little background on the company. 1PM Industries describes itself as helping "private companies to become public trading entities. 1pm Industries ensures that each client is shepherded through the process of becoming a publicly traded entity and then acts as a consultant until such time that the company is capable of managing the necessary activities and requirements on their own. In many cases, 1pm Industries locks in long term contractual agreements even after a company is trading publicly depending on the experience level of the management team."Last month, the company issued an 8-K announcing that it had divested itself of all medical cannabis products. As a result, 1PM Industries has merged into a consulting company that was created in January 2017. The Consulting entity is currently owned by OPMZ's officers and directors and will be merged into the company for no compensation to the officers and directors. The consulting company was created on January 23, 2017 and has generated approximately $1.3 million in revenue since January 31, 2017. CEO Joseph Wade said:

“For years the management team of 1pm Industries has done one thing in particular very successfully and that’s helping private companies achieve publicly traded status. There is significant revenue generated from the process of taking a company public with multiple revenue streams being generated from each account. Had we remained on our former business trajectory, it would have taken all year or more to generate the revenue that we recently generated from just one client. Instead of continuing our efforts as a private endeavor, we have decided to roll all of our activities related to helping private companies achieve publicly traded status into 1pm Industries, Inc. and that will become our primary focus for the long term.”

OPMZ anticipates generating $4M in revenue this year and that number could be as high as $6M or greater depending on a few things the company is currently working on. There are eight separate clients involved now and all are at various stages of the process.The latest news from OPMZ is that it contracted with a new privately held company that wishes to begin trading publicly. The new company is involved with the growth and development of Senior Centers in the state of California. CEO Joseph Wade said:

"the primary leadership of this company was involved in a similar venture several years ago that went public at over the counter status and eventually reached the New York Stock Exchange.”

The biggest risk that we see for investors with OPMZ is dilution. The company is sitting on just $118,000 in cash and has $664,000 in total liabilities. The company issued a series of convertible notes with conversion prices typically based on the discounted (55% to 60% discount) lowest trading prices of the Company’s shares during various periods prior to conversion. Certain notes allow for the conversion price to be the lower of the closing sale price or the discounted trading price.However, CEO Joseph Wade did try to reassure shareholders in the press release when he said:

“I would like to reassure everyone that under no circumstances will we initiate a reverse split for any reason in the foreseeable future. What would be more likely to occur at this point would be a reduction in the authorized shares and that is currently under consideration. Also, as of today, for clarification, we currently have 244,948,828 shares outstanding with 137,246,677 shares in the float. We look forward to providing more information on our current business activities in the next few weeks and as always, we thank you for your support.”

Currently trading with a market cap of $2.4 million, we have OPMZ on our watch list. We want to see confirmation of the $1.3 million revenues in the next 10-Q filing. Because if the company generated this money, then it can repay its convertible notes and avoid dilution. This is a big deal for small cap investors. We also want more details on what companies and deals the company is working on and how it will get paid. Will OPMZ receive stock in the new pubcos or is OPMZ an adviser and just getting fees? These are things we'd like cleared up. Hopefully we get this info sooner rather than later.We will be updating our subscribers as soon as we know more. For the latest updates on OPMZ, sign up below!Disclosure: We have no position in OPMZ and have not been compensated for this article.

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