Making the Right Investment
While no two companies are alike, there are four common issues that lead to good and bad Pre-IPO investments.
Those issues include the following:
Industry Market Sizing–When reviewing an investment opportunity, the size of the “market potential” needs to be significant enough that when obtaining a small percentage (under 5%) of the market, it will still represent above average sales growth adequate to trade on a major market. Wytec’s 5-year financial forecast clearly meets this criterion.
Institutional Trading Potential– In the past, highly successful Pre-IPO’s have typically been purchased by accredited and institutional investors in large purchases. Offerings that can attract these types of investors help stabilize a public market and are conducive to increasing share price over time, assuming the company meets its revenue projections. Wytec’s 5-year revenue forecast indicates a very clear path to this capability.
Intellectual/Patented Property– Intellectual/Patented property is a significant feature to successful Pre-IPO offerings, particularly when the company can indicate a well-defined path to commercialization. It begins with engaging a qualified research firm capable of a validation/workability of the patent features. Wytec owns two patents related to citywide 5G deployment and is partnering with the Nokia Corporation in a live citywide project to validate its findings.
Independent Valuation– Institutional investors often highly depend on independent, qualified valuations submitted by credible industry experts, prior to investing in a Pre-IPO. This allows the company to set a reliable base line on the overall value of the company and its price-per-share. Wytec has engaged a renowned patent expert to value Wytec’s current patents and incorporate this into the Company’s final valuation.
Disclosure Statement: This Due Diligence Review may contain statements that are “forward-looking” and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words “expect,” “intend,” “estimate,” “will” and similar expressions identify forward-looking statements. Since forward-looking statements address future conditions, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.