Now that Tesla, Inc. (NASDAQ: TSLA) once again blew past analyst expectations, the electric vehicle (EV) sector is heating back up. And while Tesla stock gets whipsawed for a variety of reasons, they still serve as the go-to barometer of industry strength. Thus, despite its wild swings, its report invariably points toward surging growth within this booming sector. For Alternet Systems, Inc. (OTC Pink: ALYI) and its investors, that can be great news.
The most important part of the ALYI story is that they are building more than just a compelling EV motorcycle. Behind that innovative well-designed ReVolt is a developing EV ecosystem expected to add tremendous value from both the US and overseas markets. An update in April highlighted ALYI’s plans to develop and capitalize from an Electric Vehicle (EV) Ecosystem that brings a perpetual cycle of research and production for electric-powered transportation technology. The great news from an investor’s perspective is that the plan inherently delivers multiple shots on revenue-generating goals, with ALYI targeting opportunities within the simultaneous evolution of transportation systems and vehicles surrounding EV technology.
Notably, while pandemic-related headwinds may have slowed down the implementation of its comprehensive plan, it is by no means stalled. In fact, ALYI is expecting to reach a significant milestone by delivering on its goal to organize an annual EV Symposium and Trade Show. Anchoring the event will be a brand name Electric Auto Race designed to attract leading EV technology and transportation system experts to also take advantage of the surging opportunities within the broader EV Ecosystem. The first EV Ecosystem Focus and Trade Show is planned to happen in Nairobi, Kenya, and is expected to capture the creative EV innovation opportunity and economic potential that coincides with a region where per capita transportation is very low.
The event, which will complement ReVolt production, will also help ALYI showcase its growing portfolio of products, interests, and partnerships.
Video Link: https://www.youtube.com/embed/LJEW7v3bFa0
A Big Start To Its Campaign
The excellent news for ALYI investors is that the processes to create shareholder value are already in motion. The company kick-started its EV Ecosystem by introducing an electric motorcycle prototype that should represent the design of an initial order of 2,000 electric motorcycles in Africa. That deal capitalizes on the massive motorcycle taxi (boda boda) market, where demand for more efficient vehicles is expected to surge. And while ALYI is already positioned well to penetrate the market, they plan to maximize the opportunity by offering a communication-technology-enabled rideshare vehicle that includes several additional market advantages. Better still, ALYI intends to expand its market share by allowing digital payments from its consumer base.
Moreover, the ReVolt EV motorcycle designed to serve the African market later this year also creates opportunities in the United States. In fact, its pre-market popularity has resulted in ALYI introducing the Retro Revolt Electric Motorcycle, a bike planned for sale in North America on a limited basis. The limited-edition cycle should bring awareness to ALYI’s overall strategy to make an environmental impact through the carbon emission reduction potential from a market-wide adoption of electric vehicles. Indeed, its styling, performance, and durability are likely to attract industry attention.
The good news on the business front is that while economic headwinds may have slowed progress, Alternet Systems took steps to implement a plan that emphasizes long-term sustainability. In place is a mechanism that can fund the company through however long it might take to build and launch its EV Ecosystem, Symposium and Trade show, and electric motorcycle.
In a recent update, ALYI noted its implementation of an operational strategy that mitigates early-stage operational expenses by maintaining coincidental services contracts that generate revenue. Although not as large as its long-term revenue-generating initiatives can provide, the deals described in ALYI’s recently published Annual Report for FY2020 show its staying power and ability to go the distance toward reaching its new EV sector goals. The excellent news is that, according to its report, base operations are keeping financial commitments in check, enabling the company to sustain sufficient momentum in the pursuit of its EV Ecosystem vision.
More funding to accelerate growth is forthcoming from its finance partner, RevoltTOKEN.
RevoltTOKEN Expected To Prove Massive Investment Capital
With ambitious plans comes the need for capital. And ALYI has a plan in place that could fund its EV ecosystem buildout well into the future.
Breaking from its past, where ALYI accessed investment structures by leveraging its common stock, ALYI recently announced a new investment structure that draws on a cryptocurrency strategy. In 2020, ALYI established a partnership with RevoltTOKEN, which will act as its financing arm dedicated to funding ALYI’s EV Ecosystem. The token is currently available to be purchased through a secure, encrypted, KYC-compliant process. The better news is that Revolt Tokens will soon be eligible for sale through one or more cryptocurrency exchanges. Updates on that program are likely imminent.
Also, ALYI recently announced completing a $1 million raise priced at $0.10 to fund its current EV ecosystem investment and expansion initiatives. The agreement allows ALYI an opportunity to expand beyond its current rideshare entry point. It also adds a geographic expansion opportunity extending far beyond ALYI’s current East African concentration.
There also appears to be a deal within the deal. From its Annual Report, Alternet Systems said,
“In April 2021, Alternet Systems, Inc. executed multiple business agreements in conjunction with a $1 million investment in Zoomcar, Inc. Alternet purchased Zoomcar convertible preferred stock at $2.50 per share. The purchase included one warrant per share to purchase Zoomcar common stock at $2.50 per share. To provide the funds for Alternet’s investment, the company issued a $1 million convertible note with a $0.10 conversion price.”
The better news is that this agreement, coupled with its corresponding expansion of the electric vehicle ecosystem, could be only the first of many opportunities for ALYI. Of course, the most near-term is likely the sales from its first electric motorcycle. Keep in mind, though, it’s no secret that ALYI also plans to capitalize on other opportunities targeting diverse EV market opportunities. Those initiatives should continue to play out this year.
Partnerships are also adding to the value equation.
Partnerships With iQSTEL, Inc. Could be Transformative
A particular deal in focus is with iQSTEL, Inc. (OTC: IQST), which puts several projects in play. The first is a collaborative mission to create new battery designs that could be technological game-changers in the sector. The innovative features utilize HD thin-film technology in one and industrial hemp in another. Both designs are expected to produce an end product that is more durable and longer-lasting than current EV battery options. That market could be huge and extend well beyond EV motorcycles in the longer term.
The two are also creating software and communications technology that integrates geolocation, battery management, theft and accident interfacing with EMS, and remote maintenance management. The comprehensive system is designed to support vehicle body and component leasing management, driver and passenger personal mobile interface, and a rideshare interface to benefit an expanding market. Like its battery project, ALYI thinks the system could have broad appeal in the EV sector, generating business from even its competitors.
iQSTEL, by the way, posted more than $44 million in sales last year and is on pace to do $60.5 million this year. Thus, they are good to have on the team. Updates from any of the collaborative projects could have a meaningful effect on share prices for ALYI.
Shareholder Value In 2021
At current levels, ALYI stock looks extremely attractive. Despite a recent pullback, its shares are still higher by more than 445% YTD. And with Tesla showing the sector to be healthy, despite some component delivery delays, ALYI’s consolidation at these levels could be bullish in the near term.
Indeed, as the planned production launch and sale of its ReVolt EV motorbikes to the Kenya market nears, valuations should follow higher. Investors are looking toward recent trading highs of $0.20 in February as a barometer for where prices can go. A “sneak peek” video of the ReVolt EV motorcycle in action caused shares to surge 19% intraday after the video highlighted design features of the EV bike. The actual production could make that percentage move look small.
The excellent news is that that catalyst is nearing. And the stock may benefit from a chart indicating that ALYI’s consolidation at these levels could position shares for a bullish run. Specifically, a move through resistance at the $0.08 level could generate the first leg higher of a rally toward $0.11, representing an 83% increase from current prices.
The better news is that the break higher can come from ALYI announcing a number of milestones. Multiple partnerships, strategic deals, and value-generating IP ownership could pave the way for gains to come sooner rather than later.
As noted, despite softness in its price, ALYI stock is still higher by more than 450% YTD. That move higher is supported by a strengthening balance sheet, several potentially lucrative partnerships, and the near-term launch of its ReVolt EV motorcycle. Still, the current price may be lacking intrinsic value from its deals with RevoltTOKEN, iQSTEL, Inc., and its nearing sale of 2000 EV motorcycles. But, the great news is that if the markets are indeed missing the mark on valuation, a massive opportunity can be exploited.
Indeed, from a sum of the parts perspective, a purchase at these levels may turn out to be a wise long-term move. Historically, ALYI stock moves appreciably on news, and with the queue likely to get busy, the timing could be right to position ahead of those releases.
With all these moving parts, keep an eye on ALYI.
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