Colorado-based developer of the trademarked Precision Mapping Solutions, ProStar Holdings Inc. (TSXV: MAPS) will list its shares on Canada’s TSX Venture Exchange later Monday under the symbol “MAPS”. The Armchair Trader is adding ProStar to our watch list with immediate effect.
A future leader in geospatial technology
ProStar’s IPO decision was driven by plans to help the company grow as well as to create liquidity, to enforce the firm’s IP and help it become a global leader in geospatial technology.
Both major and minor infrastructure work such as house building or road repairs have to face tackling what lies underneath a site, such as water and sewage lines, fibre-optic and phone lines. The tools used up until now to locate and avoid damaging this subsurface infrastructure during major works mainly rely on paper-based information, maps and unintegrated sources of data.
Patented mapping solutions
ProStar’s patented mapping solutions integrate various sources of data into a cloud-based or mobile solution providing information on the type, precise location and condition of what lies below the earth’s surface. This can significantly reduce outgoings by avoiding costly damages to underground utilities, decrease liabilities and increase productivity during construction and maintenance work.
ProStar’s Precision Mapping Solutions can improve the operations of any industry that requires the precise location of sub-surface infrastructure including utility, oil and gas, construction, engineering and surveying, 811 and contract locating.
The firm’s chief executive and founder, Page Tucker, said: “despite unprecedented and frequently challenging times, 2020 proved to be an outstanding year for ProStar. The opportunities we capitalized on throughout the year, included expanding our customer base in several verticals, introducing our most advanced product offerings, and developing the most strategic business partnerships in our history, all of which have us entering 2021 with a very high level of optimism.”
Well-positioned for expansion under infrastructure spending agenda
While the coronavirus forced many companies to cut back and lay off staff last year, ProStar kept growing, expanding its customer base in additional US states and Canadian provinces. The company positioned itself well for the new, post COVID economy which is expected to be driven in part by increased US government spending on infrastructure and new technologies designed to address the growing concern for environment and public safety.
In 2020 ProStar completed the integration of its software with several key GPS equipment manufacturers, most notably with Nasdaq-listed Trimble (NASDAQ – TRMB). It also expanded the integration of its mobile solution PointMan with the largest manufacturers of cable and pipe locate tools including Vivax-Metrotech, Radio Detection and Subsite.
These partnerships provided the firm with increased visibility and credibility and have translated into a significant increase in sales through the new user base and dealer distribution networks across North America.
In the final quarter of last year the firm’s capital raising initiative was 40% oversubscribed. ProStar completed a non-brokered private placement of 14 million subscription receipts for aggregate gross proceeds of $5.6 million. Some of the proceeds are already being used on the company’s growth plans. ProStar confirmed Monday that the share purchase warrants issued in connection with the private placement are transferable.