As one of the hottest infrastructure stocks this week, Zicix Corporation (OTC: ZICX) has been landing on investors’ watchlists since signing an LOI for an acquisition. Now that the acquisition is closed, many investors are bullish on ZICX’s future prospects given the potential of this acquisition. With a number of upcoming projects in its pipeline and a recent deal in Uganda, ZICX has the potential to become one of the best infrastructure this week. With this in mind, ZICX stock is one to watch this week as the company is preparing to release PR this week.
ZICX Stock Catalysts
Originally founded as a service provider to the healthcare industry, ZICX has been shifting towards developing applications for service companies. However, ZICX appears to be showing interest in the infrastructure industry after signing an LOI to acquire a controlling share of CTIP First Investment Inc. (CTIP-FII). While CTIP is mainly engaged in project development and project finance, it is focused on developing government infrastructure in a number of countries across Africa and Latin America as well.
CTIP-FII has gained a reputation as a reliable private investment and project development company for a variety of projects related to roads, railroads, education, airports, healthcare, energy, utilities, and more. As is, the company works with Local Government Units (LGU) and the private sector to meet the needs of the community through project planning and financing using various contractual arrangements. In this way, CTIP is helping bridge the gap for providing infrastructure facilities to municipalities or cities by bringing financial engineering to project owners and creditors to fund construction finance and permanent mortgage.
One example of this is a project the company is currently engaged in Rivercess County, Liberia for the development of a hospital with an expected cost of $90 million. In this project, the county and the Ministry of Health designated CTIP-FII as responsible for its development with oversight from the LGU and the Ministry. Over the course of the project CTIP-FII can provide services related to project development, monitoring, capacity building, and policy formulation.
In addition to the hospital project, CTIP-FII is set to begin the construction of an office building for a commercial bank in Monrovia, Liberia. Through its Director of Operations, CTIP-FII has interests across a variety of regions, however its currently concentrated on Africa where the company has Directors for Business Development stationed in Senegal, Uganda, Ghambia, and elsewhere.
Currently, CTIP-FII is expanding in expected to sign a development contract for the construction of a 150-bed hospital and medical school in Uganda. Considering the project’s projected cost of $84 million, the company could be set for major returns in the future thanks to its contributions to the project.
With this in mind, ZICX’s stock could see serious growth in the future if it acquires CTIP-FII. If its acquisition target is already profitable through these projects, then ZICX could be one of the most undervalued infrastructure stocks at its current market cap of only $4.6 million.
However, this transition and the potential it brings is mainly thanks to ZICX’s appointment of Fernando Sopot as president. With more than 20 years of experience in project development and project finance, Sopot is the President, Founder and Charter President of CTIP and the president of its affiliate companies. In light of this, many investors are bullish ZICX could acquire other CTIP affiliates in the future. If that is the case, ZICX stock could become one of the up and coming infrastructure stocks to watch.
Although ZICX has not released any updates on this acquisition since signing the LOI last March, the company landed on investors’ watchlists again after promising PR this week. Based on this, ZICX stock climbed 24% in anticipation.
*Updated June 23rd
With an LOI signed back in March, ZICX closed its anticipated acquisition of CTIP-FII to become responsible for its project development activities. At the same time, ZICX created two divisions – a Technology Division and Investments and Finance Division – to oversee the company’s new business direction. Based on this progress, many investors are bullish ZICX stock could be one of the infrastructure stocks to watch this year for more updates.
Following the closure of this acquisition, ZICX delivered on its Uganda plans as it shared that CTIP signed a development contract with the government of Uganda through the Public Procurement and Disposal of Public Assets Authority (PPDA). According to this contract, CTIP will lead the development of a 150-bed hospital and medical school building projects in Wakisu District. This project is expected to cost $77.7 million to cover construction, construction management, and project development costs.
To facilitate this project, CTIP selected China Railway 14th Bureau Group Co. (CRCC14) as the general contractor. It is worth mentioning that CRCC14 is a member of CRCC Group which is among the 50 largest construction companies in the world according to Engineering News Record. Moreover, CTIP partnered with LA Global Construction Management Group to act as the construction manager of this project. Partnering with such large companies could make ZICX one of the best up and coming infrastructure stocks this year.
In addition to this project, CTIP has four additional hospital projects in its pipeline. The largest of these projects is a 300-bed private general hospital and dormitory project in Senegal. For this project, CTIP is expected to be an investor as well as the project developer. With this in mind, ZICX has the potential to generate significant revenues from this project.
Meanwhile, ZICX shared that it has a number of other infrastructure projects coming up with most of these projects covered by a MOU. Considering the company’s recent update regarding its plans to release PR this week, many investors are bullish that PR could contain more information on these infrastructure projects.
While the official PR has yet to be released due to a technical issue, an early copy shares that ZICX’s Chairman will join the BOD of the operating company – CTIP-FII. In exchange, the Chairman of CTIP – Fernando Sopot – will sit on ZICX’s board, bringing with him several hospital development projects totaling $327.7 million as well as other development projects for infrastructure and roads. These public-private-partnerships are expected to total $450 million.
It appears that ZICX is entering a new era of supporting sustainable development. However ZICX is not concerned with project financing since the participation of strategic partners and investors in each project will help spread out the risks. The corporation believes that it “has the ability to mitigate any risks that comes its way in development undertakings” while taking advantage of the rewards that could follow. Based on this, ZICX is one of the infrastructure stocks to watch this week in anticipation of the PR which is expected to follow next week.
ZICX Stock Financials
According to its Q1 report, ZICX has $984.3 thousand in assets and $122.2 thousand in liabilities. At the same time, the company only has $996 in cash and incurred a net loss of $6.3 thousand. However, the upcoming acquisition of CTIP-FII is expected to improve ZICX’s financials given its profitable contracts.
Media Sentiment
@ChaseMacTrades called ZICX stock early on and its potential run after the release of this PR. Check out his video for the full breakdown
@MoonMarket_ was right on the money that ZICX would run to more than a penny
Technical Analysis
ZICX stock has been climbing over the past week but ran quickly with the release of the company’s PR – reaching a high of .0119. It has since dipped with profit taking and is trading at $.0092 with supports at .0092, .0079, .0062, and .0048. The stock also shows resistances near, .0111 and .0127.
With the company promising PR next week, ZICX is one of the infrastructure stocks to watch closely to see if it will maintain its gains. Currently, ZICX is trading above both MAs and but has broken through the VWAP. But bullish investors could find an entry point close to its supports now in preparation for next week’s announcement.
Accumulation has dropped as investors sold the news, but the MACD is bullish to the upside. Meanwhile, the RSI is currently at 66. As is, ZICX has an AS of 900 moillion, an OS of 693.2 million, and while its float has not been updated, it is believed to be close to the shares held at DTC or 106.3 million.
ZICX Stock Forecast
Considering the potential of ZICX’s acquisition, the company is well-positioned to capitalize on CTIP’s contracts and projects to realize major revenues. With this in mind, ZICX has already secured a development contract with the government of Uganda and has several hospital and infrastructure projects in its pipeline.
With its newest board member bringing on additional projects worth $327 million and more news next week, ZICX could continue to bolster its finances with these projects. In light of these plans, ZICX could be one of the best infrastructure stocks to watch as it focuses on sustainable development projects with Sopot on its BOD.
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