Inference Point
Services
Investment Research
We focus on finding high-growth, profitable, non-diluting small and mid-cap public companies trading at attractive prices relative to their growth and profitability potential. These companies are typically led by a committed management team, have de-risked product/service offerings, a scalable business model, and an attractive cash flow profile.
Advisory Services
We support North American and EU-based companies through hands-on operational involvement, by leveraging our network, corporate finance, and banking experience. Our dual approach provides clients with an opportunity to grow their global presence, optimize profit margins and/or capital structure.
- Enterprise B2B software business HQ-d in Vancouver, British Columbia, with operations in three geographic regions (Americas, EMEA, and Asia Pacific & Japan). The company provides mission-critical, AI-enabled enterprise-level decision analytics software solutions that leverage operational and financial data to empower some of the world’s largest organizations in the electricity, natural gas, water, oil & gas, pharmaceutical, and transportation industries to make best investment decisions and deliver highest value.
- Found the opportunity in Q1-2023 at $4.80/share (vs. $15.0/share at IPO in 2021) or ~2.3x EV/NTM revenue.
- Attractive client base & retention rate / Mission critical enterprise-grade platform
- Capable management / board with material stake in the business
- Strong growth profile (40% 4-yr ARR CAGR)
- Neglected after the IPO and largely misunderstood financial performance, given that the company invests in R&D primarily through the income statement.
- One of the most advanced technology and service providers to the growing global space industry. With a world-class engineering capabilities, space mission expertise, and a portfolio of cutting-edge next generation space technologies, MDA is the partner of choice for emerging space companies, prime contractors, and government agencies worldwide.
- Found the opportunity in Q2-2023 at $6.80/share (vs. $14/share at IPO in 2021), or ~6.7x EV/F2023 EBITDA.
- Opportunity to pay 6.7x EBITDA for one of the leading players in the industry growing at 20% per year.
- Proven player in space industry with 3 major business segments (geo-intelligence, robotics and space operations, and satellite systems).
- Compelling industry and market trend. Space is becoming one of the fastest growing industrial sectors globally.
- Good revenue visibility with a number of large government and commercial entity contracts.
- Strong management team and insider ownership.
- Clean-tech engineering company that designs, manufactures, distributes, and sells air pollution control systems, which are used to eliminate odors, volatile organic compounds (VOCs), and hazardous air pollutants (HAPs).
- Found the opportunity in Q1-2024 at $1.53/share (~10.3x EV/TTM EBITDA).
- Mispriced asset at ~6.4x EV/NTM EBITDA, with the revenue growth largely supported by record backlog, providing attractive visibility for 2024/25.
- Mission-critical product / Compelling value proposition, as Biorem addresses an important compliance problem for government and commercial customers. Global presence with ability to deliver on larger projects and remain competitive.
- Large addressable market with broad range of municipal and commercial clients.
- Competent & aligned management & board.
- Specialty pharmaceutical company HQ-d in Canada, with a portfolio of commercial and early to late stage products. Cipher acquires products that fulfill unmet medical needs, manages the required clinical development and regulatory approval process, and currently markets these products directly in Canada or indirectly through partners in the U.S., Canada, and Latin America.
- Found the opportunity in Q2-2024 at US$6.40/share (~8.4x EV/TTM EBITDA).
- Strong growth profile supported by the potential from exclusive rights to distribution of a new nail fungus drug (~Terclara) in Canada.
- Compelling financial position and attractive margins. $42M cash balance (~30% of market cap) and debt-free, providing solid capacity for M&A growth. TTM Q1-2024 EBITDA margin of 60%.
- Strong management / insider ownership at ~43%.
- Undiscovered business, given the size and limited free-float. Potential to benefit from broader institutional participation as the company grows through M&A.
- Developer and provider of remote, satellite-based, asset monitoring/tracking products and services used in connectivity-challenged areas throughout North America. It specializes in the development of innovative wireless communications that provide low cost, high tech monitoring, tracking and remote control solutions for commercial, industrial and consumer applications.
- Found the opportunity in Q4-2023 at $0.53/share (~8.9x EV/NTM EBITDA). Enterprise value of ~$11M.
- Potential inflection point driven by a number of factors, including new product development launch in 2022-23 and strong interest at trade shows with new customer wins and new orders.
- Scalable business model through the partner network across a wide range of industries (industrial, environmental, recreational, forestry, military, oil & gas, etc.)
- Strong satellite telemetry industry trends & customer demand. 85% of the Earth’s land mass is not covered by cellular signal. The satellite communication market is projected to grow at 32% by 2028 with increased commercialization driving down telemetry costs.
- Profitable base business with prudent management and high insider ownership at ~34%.
About
Our team has 10+ years of corporate finance experience, gained through working in the Canadian banking industry, focusing on mid-market companies with market caps of up to $300M. Our experience spans various industries and asset classes, including senior & mezz debt, direct and indirect (LP) equity investments. This background has equipped us with expertise in providing tailored investment research, operational and financial solutions to drive growth and maximize value. We now leverage this knowledge and experience to address our clients’ unique needs and help them achieve their strategic objectives.
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