Crednology Holding Corp (OTCMKTS:COHO) shares were down 0.40% to $0.00250 on Monday and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.00 to $0.01. The company has a market cap of nearly $1 million at 449.22 million shares outstanding.
In a press release on Monday, Crednology Holding Corp announced acquisition of an Electronic (E-Waste) and recycling company California Recycles Inc, the first acquisition by the new management team of Crednology led by Orie Rechtman. The purchase price is $250,000 and will be paid in common shares of the company and a note with payments due over a five year period.
“One of the areas of planned growth for our Company is in the E-Waste and material recycling marketplace. This business sector which has seen significant growth over the last few years is expected to grow substantially in the future. The Company is currently negotiating contracts with local cities which will result in much increased revenues and will open many other opportunities for the Company. We expect improved profitability and enhanced shareholder value. There is strong synergies between the technology companies and the E-Waste business such as the collection and recycling of all End Of Life equipment we accumulate at the Data Centers we operate as well as the many clients we support who needs to recycle their own computers and electronics,” explained rechtman.
California Recycles Inc. is a state certified E-Waste organization founded in 2003 that primarily operates by entering into long term agreements of collection programs and events with Corporate Entities, Educational Institutions, State and Local municipalities. California is leading the US in the collection of Electronic Waste efforts and each local municipality has a mandate to achieve required quotas of annual collection.
Judging from the price reaction, investors aren’t too impressed by the deal so far, especially since Crednology Holding Corp has been focused in finance and cloud computing, which comprise either a stable or growing industry. E-waste and recycling, on the other hand, seems like a relatively small niche market with limited upside.
Prior to this, Crednology Holding Corp has made a couple of acquisitions in the cloud computing industry so these holdings might be enough to shore up profitability and longer-term growth. In 2015 the cloud computing industry experienced a rapid growth of 33% with the segment of business reaching over $16 billion by the year end. Analysts project growth to be sustained above 30% annually for the next few years.
Crednology Holding Corp is a holding company that is an acquirer and operator of subsidiaries. Its subsidiaries concentrate their activities within the financial and credit industry. The company is a provider of technology and software to the credit industry, and offers analytical solutions to real estate professionals, mortgage originators, property management and financial advisors. Its subsidiaries include CreditDNA, Inc, ScoreNavigator, Inc and Score-Up, Inc.
CreditDNA, Inc. is an online Credit and Financial Management company that uses software to educate the public in having a credit profile and maximizing their credit potential. ScoreNavigator, Inc is a credit data analysis company, which provides ScoreNavigator, a credit analysis tool designed for consumers and loan originators. Score-Up, Inc. is a credit management company, which provides user with up-to-date credit education material and user’s own credit coach.