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Alpine 4 Technologies flies into new year with an expanded portfolio and a growth mindset

Snapshot

The company is interested in how the adaptation of new technologies – even in brick and mortar businesses – can drive innovation

Alpine 4 Technologies Ltd. -

Quick facts: Alpine 4 Technologies Ltd.

Price: 3.08 USD

OTCMKTS:ALPP
Market: OTCQB
Market Cap: $456.36 m
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  • Phoenix-based holding company that acquires and develops a broad range of innovative companies
  • Focused on how the adaptation of new technologies,even in brick and mortar businesses can drive innovation
  • Acquisition strategy looks at existing smaller, middle-market operating companies with revenues of $5 million to $50 million
  • Recently entered commercial drone market with two major acquisitions

What Alpine 4 Technologies does:

Alpine 4 Technologies Ltd (OTCQB:ALPP) is a diversified technology holding company headed into the new year with a powerful portfolio.

The Phoenix-based company acquires businesses that fit into what it considers a “disruptive DSF” business model: Drivers, Stabilizers and Facilitators.

Drivers are companies that Alpine 4 believes are on the cusp of growth, with huge upside potential for market share and revenue generation, for example, its subsidiary ALTIA, which operates in a $9 billion market space. Stabilizers are companies that have sticky customers, consistent revenue, and provide solid net profit returns, while Facilitators such as its subsidiary Quality Circuit Assembly are companies that have synergistic relevance to the first two categories.

More specifically, the company is interested in how the adaptation of new technologies – even in brick and mortar businesses – can drive innovation, a unique perspective that has culminated in the development of the company's Blockchain-enabled Enterprise Business Operating System called SPECTRUMebos.

Alpine 4’s overall acquisition strategy focuses on existing smaller, middle-market operating companies with revenues of $5 million to $50 million, and each business retains its own leadership with help from the holding company.

CEO Kent Wilson has led the company since 2014 and is backed by a strong team of executives with vast experience in operations and finance.

With nine portfolio companies and counting, the firm is looking to 2021 as a year of growth.

How is it doing:

According to its most recent financials, Alpine 4 saw revenue jump by 23% year-over-year in 3Q driven by strong sales from its subsidiaries.

For the period ended September 30, 2020, the Phoenix, Arizona-based group reported revenue of $8.72 million, bringing the group’s total revenue for the first three quarters of its current year to around $26.6 million.

However, those figures do not take into account two recent blockbuster deals that saw the company enter the booming drone sector for the first time.

In November, Alpine 4 announced it was acquiring electric-aircraft maker Impossible Aerospace, which builds high-performance electric aircraft and drones and has big name clients like the US Air Force. Described by Wilson as a “unicorn” Driver company, Impossible Aerospace boasts patented or patentable IP, leading-edge technology, well-funded development behind its IP, and a market space of $5 billion or larger. Both companies plan to build the nation's most vertically integrated UAV manufacturer.

If that wasn’t enough, the company ended the year with another drone acquisition – this time the target being Vayu US Inc, which builds high-performance vertical take-off and landing (VTOL) hybrid propulsion-based, autonomous aircraft. Both Vayu and Impossible Aerospace have unique qualities that make their respective platforms advantageous and complementary, the company told shareholders, which combined gives Alpine 4 a wider and larger scope of commercial clients.

The company is now positioned to capture a large market share of the commercial drone industry as it prepares to list on the technology-heavy Nasdaq senior exchange in 2021.

Inflection points:

  • Closing of Vayu acquisition expected in early January 2021
  • NASDAQ listing anticipated in the first quarter of 2021
  • Further acquisitions in the technology space

What the boss says:

CEO Kent Wilson told shareholders recently that it is now Alpine 4’s moment:

“We have the opportunity to effectuate a new phase in our public ownership by uplisting to the NASDAQ,” Wilson said in a statement. “The significance of this change will bring important benefits to our current and future shareholders, as well as, our employees. (There) is a collective energy propelling Alpine 4 forward and we intend to capture that zeitgeist. It's important that we take advantage of this opportunity quickly so that we can attract the right banking and capital market investors to Alpine 4."

Contact Angela at angela@proactiveinvestors.com

Follow her on Twitter @AHarmantas

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