Hi there,
We've done a little bit of research. Admittedly, we are not familiar with this microcap. It surged in recent days at it appears close to securing key banking licenses.
For losing for blockchain exposure, this is an interesting little company. The RevoluPAY system was built on blockchain technology and is intended to disrupt the $500 billion remittance payment market. There are also several other ventures the company is targeting.
Financially, there isn't anything to get excited about. This is a mircocrap worth $70 million that has generated approximately million in revenue over the last few months. It is however in its very infancy and last quarter grew revenue by 100% YOY.
One of the issues with microcaps and especially those with ambitious growth targets is that they are typically not profitable and aren't for some time. This can lead to high cash burn and debt levels. As of writing, it has yet to post a profit and its Travelucion segment (the main revenue generator) has been severely impacted by COVID-19.
It is bleeding cash, and in the first quarter it had negative $1.5 million in cash. The company doesn't have any longer term debt which means it chooses to issue stock to cover operations. In the quarter it issues $1.5 million in stock. In other words, the company is diluting shareholders to keep operations going.
The technology and its different ventures look quite attractive and promision. However, it is a long way from profitability and is burning through cash at a rapid pace.
Mat