Goldman Small Cap Research Publishes New Research Update on Infinite Group, Inc.

Rhea-AI Summary

Goldman Small Cap Research announced a new research update on Infinite Group, Inc. (OTCQB:IMCI), focusing on their upcoming acquisition of Pratum, Inc. and a planned equity offering. The acquisition of Pratum, a cybersecurity firm with $4.4M in sales, is set to enhance IMCI's service offerings and Midwest market presence. IMCI aims to raise up to $15M through the equity offering, with notable future valuation potential as the company transitions from a low price/sales ratio to more competitive levels. The report suggests future uplisting on NASDAQ could further increase stock value.

Positive

• Acquisition of Pratum is expected to enhance IMCI's service offerings and market presence.
• The equity offering could raise up to $15M, strengthening the company's financial position.
• Current price target suggests significant potential for stock appreciation post-acquisition and equity offering.

Negative

• None.

BALTIMORE, MD / ACCESSWIRE / April 6, 2022 / Goldman Small Cap Research, a stock market research firm specializing in the small cap and microcap sectors, announced today that it has published a new research update on Infinite Group, Inc. (OTCQB:IMCI), an emerging cybersecurity and information security firm. The update carries a price target. To view the new research update, previous IMCI reports and updates, along with disclosures and disclaimers, or to download the update in its entirety, please visit https://bit.ly/3NNQjSq.

Headquartered in Pittsford, NY with a workforce spanning across the United States, IGI works with organizations on all levels of Information Security and Cybersecurity. IGI is also the OEM of the Nodeware® vulnerability management solution, an award-winning SaaS platform that continuously scans networks to identify critical vulnerabilities. Through the Company's evolution from 1986 to today, IGI has continued to build on its strong foundation of securing data, systems, and technologies to become a leader in the cybersecurity field. IMCI is set to close on the acquisition of cybersecurity competitor Pratum, Inc. during 2Q22.

In the Opportunity Research report, analyst Rob Goldman reviews the pending IMCI acquisition of Pratum, a recently filed equity offering, and the potential future impact of these milestones on the Company and its valuation.

Near Term Events to Drive Enhanced Valuation, Positioning

Goldman commented, "A recent IMCI filing provides greater insight into IMCI's pending equity offering and the upcoming closing of the Pratum acquisition. We believe this deal leads to an enhanced valuation and positioning for IMCI. In Iowa-based Pratum, a $4.4M in sales cyber services player, IMCI is acquiring a complementary services suite provided to a large client base that represents a diverse set of industry clients, ripe for cross-sale opportunities. Pratum brings a Security Operations Center and monitoring software that enhances IGI's portfolio of offerings. We believe this deal could evolve into a Midwest hub for IMCI as it strengthens IMCI's Midwest sales exposure. "

Favorable Deal Terms

"IMCI is set to raise up to $15M in an equity offering with $8.5M in proceeds to be paid to Pratum, representing a 1.9x price/sales valuation," noted Goldman. The $15M equity offering is expected to close in 2Q22, with the Pratum deal to close shortly thereafter.

Upcoming Milestones, Forecasts

"For IMCI as a stand-alone, our current target represents 2.9x 2021 sales, a huge discount to the 11.1x figure afforded IMCI's peer group for 2022. We believe that on a pro forma combined entity revenue basis, and depending upon the post-offering share count, the discount could narrow to 5x 2022E sales. Thus, a pro forma price target could be well above our current target for IMCI alone. Following the equity and acquisition closings, we foresee a 2022 NASDAQ uplist pathway and new M&A for IMCI serving as future price appreciation catalysts," concluded Goldman.

About Goldman Small Cap Research: Founded in 2009 by former Piper Jaffray analyst and mutual fund manager Rob Goldman, Goldman Small Cap Research produces sponsored and non-sponsored small cap and microcap stock research reports, articles, stock market blogs, and popular investment newsletters.

Goldman Small Cap Research is not in any way affiliated with Goldman Sachs & Co.

This press release contains excerpts of our most recently published company update on Infinite Group, Inc. ("The Company"). The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research relied solely upon information derived from Infinite Group, Inc. The information includes authorized press releases or legal disclosures made in their filings with the U.S. Securities and Exchange Commission http://www.sec.gov.

Separate from the factual content of our update about the Company, we may from time to time include our own opinions about the Company, its business, markets, and opportunities. Any opinions we may offer about the Company are solely our own, and are made in reliance upon our rights under the First Amendment to the U.S. Constitution, and are provided solely for the general opinionated discussion of our readers. Our opinions should not be considered to be complete, precise, accurate, or current investment advice. Statements herein may contain forward-looking statements and are subject to significant risks and uncertainties affecting results.

A Goldman Small Cap Research report, update, newsletter, article, trading alert, corporate profile, sector or industry snapshot, podcast interview, or press release is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed and is to be used for informational purposes only. Please read all associated full disclosures, disclaimers, and analyst background on our website before investing. Neither Goldman Small Cap Research nor its parent is a registered investment adviser or broker-dealer with FINRA or any other regulatory agency. A Speculative Buy rating for our covered companies is defined as a company that we believe exhibits the potential to generate outsized returns despite inherent, above-average business, market, or financial risk. To download this research update, or any of our research, view our disclosures and disclaimers, or for more information, visit www.goldmanresearch.com. In 2021, Goldman Small Cap Research (GSCR) was compensated by the Company in the amount of $4500 for a research report production, an update, and press releases. In 2022, GSCR was compensated $4000 by a third party for the production of research updates and their distribution.

Goldman Small Cap Research

Rob Goldman, Analyst

410-609-7100

rob@goldmanresearch.com

SOURCE: Goldman Small Cap Research

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FAQ

What is the recent research update on Infinite Group Inc. (IMCI)?

Goldman Small Cap Research published a research update on IMCI, focusing on its acquisition of Pratum and an upcoming equity offering.

What is the expected impact of the Pratum acquisition on IMCI?

The acquisition is expected to enhance IMCI's service offerings and market presence, particularly in the Midwest.

How much capital is IMCI planning to raise through the equity offering?

IMCI plans to raise up to $15M through the equity offering.

What is the price/sales valuation of the Pratum deal?

The Pratum acquisition represents a 1.9x price/sales valuation.

What are the potential future movements for IMCI's stock price?

Depending on post-offering share count, the price target could significantly increase as the company aligns closer to its peer group valuation.