Fifteen issuers uplisted from the OTC Markets to a senior exchange in the first quarter of 2017. The majority of graduates were revenue generating companies listed on the OTCQB.
M&A played a critical role in over 50% of this quarter's graduates' growth. Acquisitions were particularly impactful for Meridian Waste Solutions, Inc. (NASDAQ: MRDN), New Age Beverages Corporation (NASDAQ: NBEV), and AUXILIO, Inc. (NYSE Mkt: AUXO).
After completing its first 'platform' acquisition in 2014, Meridian Waste Solutions, Inc. (NASDAQ: MRDN) has completed 3 major acquisitions including two acquisitions in December 2015 that more than doubled the company's 2016 revenue. In February 2017, MRDN made another acquisition of a company with over $25 million in annual revenue. These acquisitions took the company from $0 revenues in 2012 to an estimated 2017 run rate of $58 million in revenues.
With the completion of a few key acquisition in 2016, New Age Beverages Corporation (NASDAQ: NBEV) grew its revenues from less than $3 million in 2015 to over $25 million in 2016. The company's most recent and largest acquisition ($53 million 2015 revenue company) was purchased for 25% equity in the public company, $8.5 million in cash (bank financed), and a $4.5 million note payable to the seller.
One month prior to uplisting, AUXILIO, Inc. (NYSE Mkt: AUXO) acquired a company that generated approximately $15 million in revenues and $5 million of EBITDA in 2016.
See the full list of Q1 2017 OTC Graduates Below.
First Quarter 2017 OTC Graduate Report:
January 19, 2017 - Americas Silver Corporation (NYSE Mkt: USAS)
January 25, 2017 - Meridian Waste Solutions, Inc. (NASDAQ: MRDN)
February 14, 2017 - New Age Beverages Corporation (NASDAQ: NBEV)
February 14, 2017 - AUXILIO, Inc. (NYSE Mkt: AUXO)
February 15, 2017 - Sigma Labs, Inc. (NASDAQ: SGLB)
March 2, 2017 - Matinas Biopharma Holdings, Inc. (NYSE Mkt: MTNB)
March 3, 2017 - National Holdings Corp. (NASDAQ: NHLD)
March 13, 2017 - Akoustis Technologies, Inc. (NASDAQ: AKTS)
March 14, 2017 - Lilis Energy, Inc. (NASDAQ: LLEX)
March 15, 2017 - R1 RCM Inc. (NASDAQ: RCM)
March 20, 2017 - Ominto, Inc. (NASDAQ: OMNT)
March 22, 2017 - Therapix Biosciences Ltd (NASDAQ: TRPX)
March 22, 2017 - Takung Art Co., Ltd. (NYSE Mkt: TKAT)
March 23, 2017 - Valeritas Holdings, Inc. (NASDAQ: VLRX)
March 29, 2017 - Neurotrope, Inc. (NASDAQ: NTRP)
About Acquis Capital:
Acquis Capital is a private investment fund that specializes in acquisition and project finance. Acquis invests in small public and private companies to fund acquisitions or other projects that create immediate tangible value. For more information please contact us or follow us at @MicroMnA.
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