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GoverMedia Plus could be Russia’s answer to Alibaba, Investor’s Digest says

GoverMedia Plus

GoverMedia PlusShare prices for social media and e-commerce giants like Facebook and Amazon have come a long way over the past few years, thanks in large part to the continuing transformation of business to online platforms.

For Russian-speaking countries, one company recently listed on the Canadian Securities Exchange, GoverMedia Plus Canada Corp. (GoverMedia Plus Canada Stock Quote, Chart, News: CSE:MPLS) wants to assert itself in the Russian e-commerce space.

Dubbing itself as an internet platform offering all-inclusive online services such as e-commerce, social media, multimedia, corporate auctions, messaging and crowdfunding services, GoverMedia says it’s the first and only platform offering such a wide variety of service via one account.

Online commerce in Russian-speaking countries is just now starting to take hold, according to Mike Kachanovsky, a freelance writer specializing in junior mining stocks and the tech sector, who profiled GoverMedia for an upcoming edition of Investor’s Digest of Canada.

“Online shopping is becoming more mainstream within Russia,” Kachanovsky says. “Internet-based advertising is very early in the curve but showing strong growth. The combination of a large market, rapid growth in the registered customer base and rising trends for online sales all combine in a very powerful business model for GoverMedia Plus.”

Kachanovsky says that with the second-largest European internet population at 100 million, the Russian-speaking demographic is projected to do seven per cent of its commerce online by 2020, with revenues having already passed US$26 billion in 2016.

“Some analysts are referring to GoverMedia Plus as the ‘Alibaba of Russia,’” Kachanovsky says. “The standard of living and disposable income has been rising for individuals in Russia. However, outside of the major cosmopolitan cities, the opportunities for shopping and access to goods remain somewhat limited.”

“Online shopping is growing rapidly in these areas,” he says, “[GoverMedia’s] platform is ideally suited to link retailers with this consumer base.”

According to CEO and Director Roland J. Bopp, GoverMedia also plans to make cryptocurrency-based commerce part of its platform.

“The company’s intention is to develop an integrated processing system for cryptocurrencies including Bitcoin, Ethereum, Litecoin and others,” he says. “The processing system, when developed, will be compliant with tax system requirements in the different countries.”

“Based on the rapid rollout of our commercialization strategy we are expecting to have approximately 100,000 customers by late April or beginning of May. And we are forecasting about 1 million customers in the first quarter of 2019,” says Bopp.

Kachanovsky thinks that GoverMedia is an intriguing value proposition, saying, “I think there is a place in a balanced portfoilio for these speculative micro-cap companies that operate in enormous market sectors with high growth potential.”

“It is quite possible for GoverMedia’s market value to increase by several hundred per cent and the stock could still be considered extremely cheap in comparison to established rivals that dominate the tech landscape today,” he says.

MPLS began trading on February 28 with an initial public offering of 3,546,700 common shares at a price of $0.50 per share, with Mackie Research Capital acted as the agent for the IPO. At the time of publication, shares of MPLS were trading at $0.475.

Disclosure: GoverMedia is an annual sponsor of Cantech Letter

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About The Author /

Jayson is a writer, researcher and educator with a PhD in political philosophy from the University of Ottawa. His interests range from bioethics and innovations in the health sciences to governance, social justice and the history of ideas.
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