On September 30th, NuRAN Wireless (CSE: NUR) (OTC: NRRWF) a leading supplier of mobile and broadband wireless infrastructure solutions announced that they signed a contract worth CAD $4,750,000 for LiteRAN 2G, LiteRAN xG and Nexus Core Network products. This large contract had been in the making since May 2019. The Company has reached a large milestone securing a contract worth more than half of their market cap. The purchase order came from one of the largest communications satellite services providers known as Intelsat. Intelsat is a US$ 3.3 Billion dollar company which is listed on the New York Stock Exchange (NYSE:I).
Since initially announcing the deal in May, there has been a huge amount of back work culminating in NuRAN delivering and installing complete cellular sites. The equipment will be deployed to the Marshall Islands which is remote archipelago in the central Pacific Ocean. The NuRAN solution will help connect outer islands that otherwise would not have any connectivity.
Maxime Dumas, President & CEO of NuRAN Wireless was quoted “This contract confirms NuRAN’s leading position in providing mobile and broadband infrastructure solutions and the Company’s undisputed capability to break profitability barriers for clients previously set by traditional vendors who are now less competitive.”
We believe that based on the amount of effort both NuRAN and Intelsat have put into the collaboration, it is reasonable for one to consider that there could be additional contracts yielded from this relationship. With this contract, NuRAN has demonstrated that they are undisputed optimal solution for mobile network operators in their niche.
The maiden $4.75 Million Intelsat contract represents upwards of 50% of NuRAN’s total market capitalization. If one were to apply a valuation basic metric of 4x sales this would give us a market cap for NUR of CAD $19,000,000 which. With 172.98 Million shares would imply a share price of CAD$0.109. At the time of writing on Monday September 30th, shares of NUR are trading at 0.055 with values the company at $9,515,000.
NuRAN went through a management shakeup in the summer of 2019 whereby Maxime Dumas, a long time NuRAN, graduated to being No.1. Since taking the reins, this is the first major accomplishment for Dumas and his team. With a multitude of deals previously announced, an IP portfolio that keeps growing, constant R&D in the 5g space and industry relationships that have been built over the last few years with the likes of Intelsat and Facebook, we are confident that NuRAN will be successful going forward.
All figures in Canadian Dollars (CAD) unless otherwise specified.
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