There’s been a lot of focus on the lack of liquidity of many TSX Venture Exchange stocks of late, but at least one tech junior is having no problems attracting investors by the boatload.
Edgewater Wireless Systems (TSXV:YFI) is an Ottawa-based company that was formed in 1988 as a spinoff of an established defense R&D contractor, Edgewater Computer Systems. The company went public through an RTO three years ago.
While shares of Edgewater, which markets a line of multi-channel WiFi access point products, languished through much of its public existence, 2015 has seen the stock take off like a rocket. The company has leapt from just three cents in March to close at $0.425 today, a 19.7% bump from yesterday. Many recent days have seen the stock trade more than 10-million shares.
The most recent catalyst for action of Edgewater was the May 29th news that it had received notice of allowance from the U.S. Patent and Trademark Office for a U.S. patent application on automatic gain control (AGC) for multichannel/wideband communications systems.
Edgewater says its technology solves pervasive problems in delivering WiFi in high-density scenarios. The company says the multichannel architecture of its WiFi3 products deliver high quality WiFi in high density environments like stadiums and shopping centres.
“We’re increasingly seeing service providers looking to solve the issues of interference, connectivity and QoS that exist in high-density WiFi environments,” said CEO Andrew Skafel recently. “These issues are starting to dominate the $26.1-billion WiFi market and Edgewater Wireless is uniquely positioned to address these issues. Where others are static in the advancement of their technology we are building innovative new ways to maximize WiFi performance and QoS. Beyond the obvious technical advantages we gain with this new patent award, its addition to our patent portfolio instantly creates more value and revenue potential to the licensing side of our business.”
While the company may be addressing multi-billion dollar markets, little of that has yet to trickle down to its balance sheet. Edgewater Wireless has produced scant revenue to date.