Written by ι Stock Market Media Group Staff — August 5, 2013
INSCOR, Inc. (OTC PINK: IOGA) has officially arrived! It has been just over a month since INSCOR named Kenny Andam as its new Chief Executive Officer (CEO), but what a month it has been. In that short time, the new CEO landed the company squarely in the middle of negotiations with an organization in his homeland of Ghana and walked away with a very lucrative insurance deal that will earn INSCOR over $200 million in gross revenues in just the third year of the deal.
When talks began between INSCOR and Ghana’s National Mass Social Welfare Scheme (MSWS) to insure the replacement of lost or stolen welfare cards issued to its members, the new CEO’s fingerprints were all over this golden opportunity. Andam has been successful at creating many companies, and his success likely comes from his ability to think outside the box and simplify the process.
When Stock Market Media Group, a full service investor relations firm focused on research, market awareness and content development, spoke with Kenny Andam shortly after his appointment, it was clear then that he would open the company up to many more opportunities that would generate revenue for INSCOR and improve the company’s value for its shareholders. INSCOR joins a growing list of companies that have come to realize this CEO means business and he builds business opportunities.
Shareholders have to be elated with the numbers being announced from INSCOR’s contract with MSWS. A quick breakdown of the deal and you can’t help but be impressed with INSCOR and the future of the company under Andam. Keep in mind this is a company priced under $0.65/share and with this new contract it’s highly undervalued – but for how long? MSWS will initially provide valuable structured welfare needs to 3 million members on Oct. 30, 2013, growing to 9 million members by Oct. 30, 2014, and then reach 18 million members by Oct 30, 2015. A monthly fee of $1 USD per card will be paid to INSCOR to insure each member’s card for replacement should a card be lost or stolen. The insured coverage will be structured for only lost or stolen card replacement.
For INSCOR, this represents approximately $3 million in gross monthly revenue beginning November 30, 2013, and ultimately rising to $18 million in estimated gross monthly revenue within three years of the launch of the cards. So, some quick math should make any investor giddy at the company’s current price tag, as you realize that securing this contract means $36 million per year in gross revenues as coverage on the cards kicks in beginning this November. That gross revenue quickly grows to over $200 million each year by the third year when MSWS ramps up coverage to all 18 million members in Ghana. And, the good doesn’t stop there! The company can continue to capitalize with MSWS’s growth, which is projected to reach 650 million subscribers to its programs throughout Africa by 2030.
MSWS is a social welfare initiative aimed at alleviating poverty by offering financial help to the poor and vulnerable. The organization will issue a card to each of its 18 million current members and growing as part of its effort to provide for member needs. MSWS will provide valuable structured welfare needs to its members that include; affordable housing, educational grants, and providing capital to set up new businesses.
As MSWS continues to grow so too does INSCOR, and with Kenny Andam at the helm, you can bet he’ll find new areas where the company can focus its efforts to generate more and more revenues in addition to INSCOR’s family of insurance products that have already been specifically tailored to meet growing needs nationwide.