Construction activity is often seen as a strong barometer to determine the overall health of the economy. Companies will often put off major construction projects if there is a belief that the economy may be in trouble. Conversely, when economic growth is humming along, construction activity is going to be very lively and active.
According to Statista, United States construction expenditures came in around $1.23 trillion in 2017. This makes the U.S. one of the largest construction markets in the entire world. The market research firm sees a lot of positive trends and factors that will continue to see strong construction growth within the United States. Statista notes that aging U.S. infrastructure is a major issue that will require a significant boost in construction in order to properly update our bridges, roads, and other key public facilities.
Overall, Statista estimates that U.S. construction spending will increase from $1.23 trillion in 2017 to $1.53 trillion in 2022. These estimates cover all forms of construction activity, such as residential, non-residential, industrial and more.
On a global scale, the construction industry has strong growth estimates as well. According to an updated report from the Construction Intelligence Center (CIC), the construction research firm rose its forecast for global construction growth.
In December 2017, the CIC released report forecasting that the global construction industry will see growth of 3.6% between 2018 and 2022. However, the CIC released an updated report in April 2018, which increased its growth estimate to 3.7% between 2018 and 2022. While this may not seem like much at first glance, “in real value terms (measured at constant 2017 prices and US$ exchange rates), global construction output is forecast to rise to US$12.4 trillion in 2022 from US$10.4 trillion in 2017,” according to the report.
The global construction boom is fantastic news for companies that supply the necessary building materials needed for construction. As demand for construction increases, so does the demand for building materials. One such company that aims to be a key U.S. building materials supplier is Innovest Global, Inc. (OTC Pink: IVST).
IVST: In Late-Stage Talks, LOI Signed, For Acquiring Building Materials Company With $30 Million Annual Revenue
Innovest Global, Inc. (OTC Pink: IVST) is a Cleveland, Ohio-based conglomerate, which currently has two active divisions: Commercial & Industrial and Biotech & Health Sciences. Innovest’s Commercial & Industrial division is the major revenue growth driver for the company right now, which currently has an annual revenue rate of around $4.5 million, as of the end of August 2018. If the acquisition is completed, the building materials company would be Innovest Global’s third division.
On August 31, 2018, Innovest Global announced that it has signed a letter of intent (LOI) and agreed to a final structure for the acquisition of a building materials company that is generating annual revenues of $30 million. Management detailed that the initial discussions began back in March 2018, with formal negotiations beginning in April 2018.
In June, Innovest management formally presented the acquisition pitch to the board of directors of the target company, which later approved and executed the LOI right there on the spot. After two months of further negotiations regarding acquisition transaction structure, both sides were able to reach an agreement.
“Terms include a 100% acquisition of the target entity in exchange for the issuance of 5 million common shares, restricted, with a minimum value guarantee to be achieved in two years, and a high five-figure cash payment at closing. Closing is expected in the first half of September. Look for much more information to come soon,” according to Innovest Global’s official press release.
“This transaction represents a substantial, over five-times increase in Innovest’s revenue, and marks entry into its third industry sector. This is a transformational acquisition for Innovest. Because of the revenue, but also because the leadership of the organization is world class, well respected in their industry, and has a vision and plan for growth that I believe is highly likely to succeed in our model once we hit the switch,” detailed Innovest Global CEO Dan Martin.
IVST: Biotech Division Set For Two Fall Conferences, Featured In Delta Sky Magazine’s October Biotech Issue
Innovest Global’s Biotech & Health Sciences division has been extremely active as well. In late August, the company announced that will be attending two major biotechnology conferences this Fall in an effort to help expand awareness around StemVax Therapeutics.
The biotech division, led by Dr. Dwain Morris-Irvin, will be attending the 48th Annual Society for Neuroscience Conference and the BIO Investor Forum. The Society for Neuroscience will take place between November 3-7 in San Diego, California. The BIO Investor Forum will be held in San Francisco, California between October 17-18.
“With the recently announced patent approval, and obtaining exclusive worldwide rights to the technology, we believe that now is the time to collaborate with other scientists that have technologies which serve Innovest’s mission and could benefit from the relationship,” said Dr. Dwain Morris-Irvin, Division President and StemVax Therapeutics Founder.
In other news, Innovest Global will be featured in Delta Sky Magazine’s October Biotech Special Edition issue. The Delta Sky Magazine is the official in-flight magazine for Delta Air Lines, Inc. (NYSE: DAL) and has readership of around six million highly-engaged passengers.
Overall, Innovest Global is continuing to expand its business through key acquisitions and thriving organic sales growth. We expect to hear further details shortly regarding the building materials company and the mega-acquisition that would put Innovest on the radar of even more institutional investors. The Biotech & Health Sciences division should have a very exciting Fall, as the two major conferences and feature in Delta Sky Magazine are on tap in the coming months. Things are really starting to heat up over at Innovest Global.
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated two thousand five hundred dollars cash and fifty thousand restricted shares for the creation and dissemination of this content.
This material does not represent an investment solicitation. Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company’s plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management.
The above communication, the attachments and external Internet links provided are intended for informational purposes only and are not to be interpreted by the recipient as a solicitation to participate in securities offerings. Investments referenced may not be suitable for all investors and may not be permissible in certain jurisdictions.
Spotlight Growth and its affiliates, officers, directors, and employees may have bought or sold or may buy or sell shares in the companies discussed herein, which may be acquired prior, during or after the publication of these marketing materials. Spotlight Growth, its affiliates, officers, directors, and employees may sell the stock of said companies at any time and may profit in the event those shares rise in value. For more information on our disclosures, please visit: https://spotlightgrowth.com//disclosures/