Shares of Virtutone (TSXV:VFX) have enjoyed a steady climb over the past few months, but the company’s CEO still thinks there is upside.
Virtutone CEO Jason Allen bought 15,000 shares of the company’s stock in the open market yesterday, at $.050 and $0.51.
Using a state-of-the-art switch platform to move minutes from the customer to the vendor, Virtutone procures inexpensive minutes and sells them to other VoIP companies in Canada and the US. Following a lengthy period of infrastructure investment, the company’s topline has begun to climb aggressively, from $200,000 in monthly revenue last February, to $9.2-million in January of 2014.
The rising revenue has enabled the Edmonton-based company to shore up it balance sheet; Virtutone recently closed a $3.99-million financing.
Allen says the company’s recent upside was a long time in the planning.
“On the surface it looks like Virtutone was an overnight success but that is far from reality,” he said in an interview with Cantech Letter in October. “…we’ve been in this business from the beginning. Over the past decade we developed a very specialized skill set in VoIP networks, sales and service. All of the factors that we combined in 2012, including investing $1 million in world-class carrier grade switching equipment, access to substantial working capital, and recruiting the right manpower with the right experience came together about 6 months ago.”
Shares of Virtutone closed today even at $.50.
Disclosure: Virtutone is an annual sponsor of Cantech Letter.