Cataca Resources Inc (OTCMKTS:CATQ) Just Closed On Its Pivot To A High Growth Tech Industry, Takes On Uber

Cataca Resources Inc (OTCMKTS:CATQ) gapped up into three consecutive sessions at the end of last week, and the company looks set to pick up further strength as we head into the start of November. The gains come on the back of a recent acquisition, and with it, a pivot in focus and operations.Here's what's important, and what we are looking for going forward.First up, disregard pretty much everything associated with Cataca to this point. For all intents and purposes it's a shell through which the above mentioned acquired entity (which we'll get to shortly) is picking up a quick and easy public market listing. Revenues are non existent, and a small amount of debt aside, balance sheet is essentially blank.What we're looking at here is a brand new public company, called FlitWays. Cataca is set to change its name near term (and its ticker) to reflect the FlitWays acquisition and operational focus. The latter of which is first and last mile business travel. Uber currently dominates the space from a recreational travel perspective, and to a certain extent the same could be said for business travel, but FlitWays is targeting the latter sector (primarily), and in doing so, is hoping to differentiate itself from the competition.Specifically, the company goes direct to companies, as opposed to the traveler, and secures contracts that see the company in question commit to using its services for the business related travel of its employees.It's a business model that serves up some nice catalysts, and it's these catalysts on which we intend to base, and adjust, our Cataca valuation going forward.Take Friday's PR for example. The company announced that it it had signed a distribution agreement with TUI Group to provide ride supply for the TUI Group: TaxiTime apps, currently live in the U.S., France, Britain, Spain, and Germany.TaxiTime, which TUI owns and operates through its subsidiary Hotelbeds, is a sort of comparison application for ride hailing. FlitWays is going to feature as a service provider on the application, and in doing so, should be able to pick up a considerable boost to revenues in the above mentioned target regions.It's a boost, but we think there's more to come. On October 21, FlitWays announced a deal with Xerox Corp (NYSE:XRX), which will see the company's fleet represented as part of two ride hailing services in Denver and and Los Angeles.To date, FlitWays has a fleet of more than 20,000 vehicles, and services customers in 170 countries globally. It has a number of differentiators over competitors like Uber, in that it focuses primarily on the business transport space, and operates with fixed pricing (i.e. no surge pricing). This allows the company to offer other companies the ability to plan and budget employee travel much more efficiently than with another platform, and we're seeing this potential recognized in the signing of the contracts between FlitWays and its partners.There are some unknowns, and these are the risks going forward, but we don't see them as prohibitive in terms of picking up a speculative exposure. Our primary concern is cash. FlitWays put forward its cash position by way of an ex99 8K attachment ahead of the acquisition close, and it's essentially non existent ($7K at end-2015).This means we're going to see some dilution (which is almost certainly why the company has chosen an easy route to the public market) and this dilution is going to weigh on the value of an early exposure. Revenues are growing, however, and fast, up from $67K in 2014 to $337K in 2015, so the assumption is that if the company can maintain this growth, and use any dilutive capital to expedite it, then the value loss should offset somewhat.All said, this is a young company in a competitive industry, but it's growing fast and it looks like its corporate-focus strategy is working to help it pick up market share. We're looking for the announcing of more deals like the Xerox and the TUI contracts to consolidate growth, and to serve as upside revaluation catalysts across the coming quarters.We will be updating our subscribers as soon as we know more. For the latest updates on CATQ, sign up below!Disclosure: We have no position in CATQ and have not been compensated for this article.