Adaptive Medias Inc (OTCMKTS:ADTM) stock surged of its 52-week low of $0.07 to over $1.00 on news that Adsupply had offered to acquire ADTM for $1.50 or $35 million cash. If a company decides to submit an equivalent offer, ADTM share price could gain as much 350%. Clearly, ADTM has a competitive advantage and operating in an industry that is poised for rapid growth.
The CEO recently committed on the offer in its earnings update. The CEO Mr. Strong stated, “As we continue to work with AdSupply to evaluate our options, we believe the combination of Adaptive Medias and AdSupply will likely represent a compelling opportunity for both companies and their respective clients and shareholders. We believe a merger of the parties could enhance the business and growth prospects of the combined entities and position us as a leading strategic partner of choice in the mobile advertising space and could potentially bring more value to our shareholders than our acquisition by AdSupply. We expect to complete our evaluation very soon and look forward to sharing our assessment with our shareholders.”
In other recent developments, ADTM recently announced its fourth quarter guidance. The company expects to exceed both revenue and EBITDA guidance that it had issued. The demand for ADTM technology is accelerating. Fourth quarter revenues is expected to come in at $1.6 million, up $0.3 million from its prior guidance. In addition, ADTM expects to see positive EBITDA.
ADTM recently announced signing a top tech news website to its media graph ad-tech platform. The company TechnoBuffalo.com which has over 18 million viewers a month will leverage ADTMs digital video player to supplement its YouTube videos.
ADTM is a technology company that focuses on providing digital video and mobile technology and service solutions for publishers and content owners. The platform offers an HTML5 (Fully Responsive)/Flash-friendly Video Player but is player agnostic and provides content for publishers who need digital video to offer to their audiences or to supplement their video libraries. The core platform is the Media Graph platform, which allows the customer to upload and encode content and then store, manage, program and serve that content to their audiences.
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ADTM is currently trading at a $8.82 million market valuation. ADTM floor price should be $1.50 given the most recent offer to acquire the company by Adsupply. ADTM has been signing up new clients and continues to up its revenue and EBITDA guidance. This microcap story is just beginning and will be an exciting one that will reward investors.
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Disclosure: we hold no position in ADTM either long or short and we have not been compensated for this article.