AMPD Ventures (CSE: AMPD, OTCQB: AMPDF, FRA: 2Q0) is a supplier of high-performance computing solutions to several industry sectors and owns a subsidiary named Departure Lounge. With over 2 decades of experience, the company achieved a solid start for commercial operations in 2022 and is well-positioned for growth in 2023. Several factors hit the tech sector, and AMPD's decrease in valuation offers a great opportunity before the market picks up steam.

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Company Overview

AMPD Ventures (CSE: AMPD, OTCQB: AMPDF, FRA: 2Q0) is a Canadian tech company focused on providing the next generation of computing and cloud infrastructure solutions for three key industry verticals. The company works with its clients to ideate and implement end-to-end solutions that will improve price performance from the first line of code through launch and expansion to decommissioning and recycling of used equipment. Probably one of the most exciting of the company's branches is Departure Lounge. Departure Lounge wasn't founded by AMPD but was acquired on December 2021.

Departure Lounge already has five customers and has generated almost $175k in booking during Q4 2022, its full quarter of operations. Departure Lounge created volumetric holograms for a Fortune 500, obtained a contract to help design and build a Metaverse for one of the world's largest and most highly distributed cryptocurrencies, and has also been selected as Metaverse partner of record to one of Canada's most important First Nation's cultural centers, etc. The branch already has a solid track record and talks strongly about the enormous market potential for Departure Lounge's services and solutions. The firm is prosperous with 20 employees and should at least add 5-8 employees in H1 2023 and bring in several contractors to meet the expected increase in demand for creative and development services.

Tippett Studio also selected AMPD to help them power their growth and expansion in the North American market. Tippett announced in May 2022 its desire to dive into the Canadian market with its first satellite office (Tippett Canada) established in Toronto. Tippett notably provides the content to Marvel on "The Falcon and the Winter Soldier," all three on Disney+, and Season 2 of "Locke and Key" on Netflix.

"This is a significant milestone for us," said Anthony Brown, CEO at AMPD Ventures Inc. "Securing an industry leader such as Tippett Studio as an AMPD Virtual Studio customer represents major validation to the entire VFX market as to the viability and overall strength of our Virtual Studio solution."

"It all started when we were trying to find a solution for remote rendering," said Michael Root, CTO for Tippett Studio. "We tried several solutions from companies in  North America and Asia and couldn't find a solution that made sense from either a performance or price perspective. When we finally got to try AMPD Render, one of the solutions in the AMPD Virtual Studio Suite, we were immediately impressed. In fact, during our first test, we rendered approximately 4,000 frames using AMPD Render on the AMPD POD in LA, and my team was never aware that the server they were rendering on was over three hundred miles away."

On the path of acquiring worldwide clients, AMPD dealt with Magnolia Quality Development Corporation Limited, which operates in Thailand, to offer consulting services for their next-generation metaverse content production initiative, which is intended to be the largest in Asia. AMPD will bring its expertise on the technical and studio infrastructure requirements to design and build a world-class Creator Studio utilizing AMPD Technologies and Departure Lounge's skills. Once ready, the Creator Studio will host an innovative combination of virtual production LED stage and a Departure Lounge media production studio that will help make Thailand the center of the future of Metaverse and film production in Asia.

Financials

The company shared on October 31 its financial results for the period ending August 31. Keep in mind these results don't include the last private placement and new revenues obtained by AMPD. Regarding the balance sheet, the company had $1.5M in cash for a total of $7M in total assets. Regarding liabilities, the amount went up to $3.35M. For the sales, it represented $684k over the last trimester (vs. $333k in 2021) and had a $2.3M loss ( x2 compared to 2021).

The company closed a $2M non-brokered private placement through the sale of 14.2M shares at $0.14. Each share is entitled to a $0.20 warrant available for 24 months following the closing date of the private placement. The money raised will serve to deploy infrastructure in additional geographic locations, to increase headcount, and for general working capital purposes. The company announced on November 29 closed the second tranche of the private placement. An important piece of information is the company encountered new investors from Europe, meaning their investor range is diversifying.

AMPD's stock is down -70% YoY but keeps bouncing above $0.10. The stock seems to hold around $0.12 and has a 52-week low of $0.10 and a 52-week high of $0.50. Before the private placement, 103M shares were issued and outstanding, 5.5M options were available (avg. price: $0.26), and the company had 36.8M warrants (avg. price: $0.41).

Bottom Line

AMPD Ventures (CSE: AMPD, OTCQB: AMPDF, FRA: 2Q0) is currently on the verge of seeing significant revenues. The company has gained legitimacy thanks to its multiple deals and is expanding worldwide. The recent private placement will help the company to develop faster.

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