Newly listed ProStar Holdings (TSX Venture: MAPS) is replacing antiquated methods of buried utilities and infrastructure detection by moving paper maps to the cloud. They are aiming for $200 million in recurring revenue by 2025, and States have already started mandating its use.
This is an aggressive infrastructure boom play that high growth investors should not ignore.
30 Second Summary
- Over $10 billion annually is spent in the U.S. on underground utility and infrastructure detection.
- Today’s antiquated methods of locating and detecting underground utilities results in over 500,000 buried infrastructure strikes per year in the US alone, increasing risk of injury and death and resulting in enormous financial and environmental costs.
- ProStar’s (TSXV:MAPS) Pointman® with its 19 issued patents, is used by a growing marquee client list that spans Fortune 500 companies to US government agencies. Colorado Dept. of Transportation has just mandated Pointman® use, with a growing list of states putting it under review.
- Pointman® moves antiquated infrastructure data storage from filing cabinets into the cloud, providing real-time, survey-grade data to Prostar clients. It’s no wonder it’s already being mandated for use in regions of the United States and a growing list of other states have it under review.
- Management, Board and Key Employees own 35% of the shares, subject to 36-month lockup and restrictions.
Hitting The Ground Running
ProStar (TSX Venture: MAPS) has just broken ground by listing its shares for trading on the TSX Venture Exchange on January 11th, opening the doors for investors like you to participate in the company’s aggressive growth drive before the herd gets in. This offers a unique opportunity to start your review of this investment before so many others hear about it in the weeks and months ahead. Be sure to get on ProStar’s e-mail list now so you don’t miss out on breaking news and updates from the company.
With its flagship product already commercialized, this microcap technology company has landed a partnership with a $16 billion GIS firm. Combined with a growing list of clients that already includes some of the biggest engineering and infrastructure builders in the US and Canada, ProStar is in the very sweet spot in its investment lifecycle that should not be ignored by value hunters.
ProStar has solved a major problem plaguing the international surveying and construction industries, while bundling its software, Pointman®, into an easy-to-use integrated mobile and cloud-based platform. The Company intends to exponentially grow its already robust cash flow by offering Pointman® as a SaaS model to companies in a multitude of verticals including engineering, construction, telecom, railways, electricity, oil & gas and others.
ProStar’s patent protected, and multiple award winning Pointman® system provides ProStar customers with real time, survey grade underground infrastructure location data that saves them money, protects the environment and ultimately makes all our lives safer.
To understand the amount of relief provided by Pointman® to the multi-trillion dollar infrastructure industry, one must first understand the scope and seriousness of the problem.
A recent survey of stakeholders in the construction industry (UK) has reported that respondents identified unreliable (inaccurate, incomplete) records as the biggest source of risk of damage to underground infrastructure.
With approximately 35 million miles of underground pipelines and utilities throughout the U.S. alone, an estimated $10 billion USD annually is spent toward underground infrastructure detection.
When a utility line or pipeline is struck due to poor information, bad things can happen. There is risk of injury and death. There is a disruption of critical communication and other infrastructure services locally. There can also be severe environmental damage, with a risk of gaseous products or petroleum leaking into our water systems, rivers, lakes and oceans.
It has been estimated that unreliable location information about underground infrastructure results in 400k – 800k strikes annually (or 1 or 2 per minute in the United States alone), representing a $50 billion to $100 billion drag on the U.S. economy.
Current methods for identifying the location of buried utilities are so antiquated that if it wasn’t so dangerous, it would be comical. The old method includes electro magnetic tools and a paint can or a flag to mark the spot, with paper documents and maps remaining the primary source for storing this information.
Utility maps are often in the form of design drawings or sketches and in many cases show relative locations based on objects, such as a curb or a building. If the location of the curbing has changed or the building no longer exists, then the use of this reference object to provide the relative location is no longer valid.
These antiquated systems and workflows frequently produce inaccurate, imprecise or dated information which lead to costly delays, loss of life and human injury not to mention damage to both property and our precious environment.
Enter Award-Winning Pointman®
ProStar’s PointMan® integrates mobile and cloud applications with GPS mapping and utility location tools to provide real time, survey-grade data to ProStar customers.
Pointman®’s ability to end this ongoing dilemma has already attracted State-level government attention and a marquee client list of some of the world’s largest engineering, construction and infrastructure firms.
ProStar is now a multiple award winning company, including ACQ5’s “Technology of the Year”, Silicon Review Magazine’s “30 Best Leaders To Watch” and Acquisition International’s “Global Leader in Geospatial Software Development.”
Colorado Department of Transportation (CDOT) has mandated PointMan® throughout the state beginning in January of 2021, while a growing list of other US states has it under review.
The ultimate seal of legitimacy came on July 8th, 2020 when ProStar was invited to join Trimble Inc.’s (Nasdaq: TRMB) GIS Business Partner Program, allowing Pointman®’s seamless integration into Trimble’s hardware.
Operating in over 150 countries, Trimble is a $16 billion market cap company providing products and services that “connect the physical and digital worlds.”
This partnership essentially opens the floodgates, giving ProStar a global platform to showcase its product via 163 Trimble dealers worldwide and reach infinite amounts of new customers.
Stephanie Michaud, strategic marketing manager at Trimble Survey & Mapping field solutions had this to say when the ProStar / Trimble Partnership was announced:
“Together, Trimble and ProStar are changing the way construction companies, engineering and surveying firms as well as government transportation agencies capture, store and utilize utility infrastructure data. By leveraging the power of geospatial technology, they are able to make more informed decisions in the field,”
Enforceable Patent Protection
The company’s core defensible IP gives them a firm grip on the acquisition and visualization of data pertaining to underground utility location. Put simply, a competitor attempting to collect and upload to the cloud underground utility data would be infringing on ProStar’s rock solid patents. They’ve effectively created a moat to protect what is increasingly being seen across the industry as an indispensable tool. The effectiveness and value of the Company’s 19 issued patents is apparent in the quality and caliber of clients they have been able to retain and continue to build.
Saas Model = Exponential Recurring Revenue
The Company is already well on its way toward a robust growth curve, and expect to close out 2020 with $2.2 million in revenue. Assuming a $1,995/year subscription rate for ProStar, the company would need to hit just over 10,000 clients to reach a $20 million annual revenue milestone. Given the sheer size of the industry, the dire, industry acknowledged need for Pointman® and enforceable patents to lock up the technology, ProStar has their sights set on 100,000 clients by 2025, equating to $200 million in revenue at today’s prices. We feel these numbers could be incredibly conservative.
ProStar (TSX Venture: MAPS), while still a young company, has proven to be a serious contender to completely transform the way global underground infrastructure is mapped, logged and shared. It helps the environment, it saves lives all while saving ProStar customers money. They already boast a top tier client list which span Fortune 500 companies to US government agencies, with a rapidly growing pipeline of potential new customers.
With shares having just started trading on January 11th, consider yourself in a rare window of opportunity to start your review on this investment before so many others hear about it in the weeks and months ahead.
Shares in ProStar (TSX Venture: MAPS) may represent an outstanding opportunity for investors seeking ground floor investments into an industry leading, high growth company providing defensible patented solutions to the multi-trillion dollar infrastructure sector.
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