VANCOUVER - Siyata Mobile Inc. (NASDAQ: SYTA, SYTAW), a company specializing in Push-to-Talk over Cellular (PoC) devices, today announced a strategic investment in Canadian Towers & Fiber Optics Inc. (CT&FO), a firm that constructs and manages telecom infrastructure in Mexico's burgeoning telecommunication sector.
CT&FO is currently engaged in tower development within Mexico, the second-largest market in Latin America's $81 billion telecom industry. The company boasts ownership of the largest dark fiber optic network in Central Mexico and has secured a 20-year leasing contract with Telefonica (NYSE:TEF), a multinational telecom leader. With 24 towers in place and plans to erect over 1,000 more across key markets in the coming years, CT&FO aims to enhance coverage, particularly in rural areas.
Marc Seelenfreund, CEO of Siyata Mobile, expressed enthusiasm about the investment, highlighting the potential for business growth in Latin America and the opportunity to introduce Siyata's PTT handsets in the region through this partnership. CT&FO's expansion is anticipated to create new avenues for Siyata to advance its sales initiatives.
Chris Cooper, CEO of CT&FO, welcomed Siyata's investment and expressed eagerness to collaborate on expanding the telecom infrastructure and bringing Siyata's innovative devices to wireless carriers in Latin America.
Siyata Mobile Inc. is known for its rugged PTT handsets and accessories, which are used by first responders, enterprise workers, and various organizations to communicate instantly over cellular networks. The company also provides in-vehicle solutions and cellular booster systems to ensure effective communication for mobile workers and in areas with poor cellular signals.
This investment is based on a press release statement.
In other recent news, Siyata Mobile has been making significant strides in its operations. The company secured a US patent for its VK7 Vehicle Kit, an innovative mobile conversion apparatus designed for docking cellular data devices. In addition, Siyata Mobile unveiled an enhanced version of its SD7 Wired Palm Mic Pro, incorporating advanced AI noise cancellation technology aimed at improving communication clarity in loud environments.
The company also announced receiving orders worth over $2.2 million for its SD7 handsets and accessories, signifying growing adoption in the US and international markets.
Furthermore, Siyata Mobile priced a public offering of $4 million in common shares and/or pre-funded warrants to purchase common shares at $1.30 per share. The proceeds are intended for use as working capital, general corporate purposes, payments for marketing and advertising services, and potential future acquisitions.
InvestingPro Insights
In the wake of Siyata Mobile Inc.'s strategic investment in CT&FO, a glance at the company's financial metrics provides investors with a clearer picture of its current market position. According to InvestingPro data, Siyata Mobile has a market capitalization of $0.72 million, indicating a relatively small player in the telecom industry. The company's revenue has seen a growth of 17.94% over the last twelve months as of Q1 2024, which may reflect positively on its business expansion efforts, including the recent investment in CT&FO.
One of the InvestingPro Tips suggests that Siyata is trading at a low Price / Book multiple of 0.1, which might appeal to value investors looking for potentially undervalued stocks. Additionally, the tip that the stock is in oversold territory according to the Relative Strength Index (RSI) could signal an opportunity for investors to consider SYTA, especially if they are looking for entry points in a potentially undervalued situation.
Investors should note that analysts do not anticipate the company will be profitable this year, and the company is quickly burning through cash, which are critical considerations for assessing the risk associated with this investment. For a comprehensive understanding of Siyata Mobile's financial health and future prospects, interested parties can explore additional InvestingPro Tips by visiting https://www.investing.com/pro/SYTA. There are 18 more tips available that cover various aspects of the company's performance and outlook. To access these insights, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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