Innovative Technology Holding Company Engaged in Roll-up Strategy |
Sibling Group Poised to Transform Education IndustryInnovative Technology Holding Company Engaged in Roll-up StrategyBy actively embracing new opportunities in digital technology, operations, and curriculum design, education leaders are seeking to re-define and substantially improve education efficacy and performance. According to IBIS Capital Research, "By 2019, 50 percent of all high school courses will be delivered online." This rapid evolution of the education sector is driven by academic leaders seeking more effective, low-cost solutions that fully leverage technology to create the best possible outcomes for students. Through its current and future operations and subsidiaries, Sibling Group Holdings, Inc. (OTCQB – SIBE - $0.14 – NR) sits at the apex of this estimated $4.2 trillion market. Led by an experienced industry team, SIBE is positioned to emerge as one of the leaders in the industry by engaging in a targeted rollup strategy that provides the Company with maximum operating leverage and future proftiability. SIBE's first acqusition, the Blended Schools Network ("BSN"), closed in May 2014. BSN is an education company founded in 2002 by Pennsylvania school superintendents seeking to provide high quality online learning to all K-12 students. The BSN curriculum enables school districts to reach homebound students along with charter and homeschooled students, provide alternative and supplementary education solutions, offer increased opportunites for gifted/talented students, and other related features to its schools and their students. Today, BSN currently serves 160+ school districts with over 300,000 course enrollments in the 2013/2014 school year. The BSN team has developed more than 200 online courses, 15,000 lessons, 12,000 videos and over 8,000 modules and has garnered an enviable reputation in the online education arena. Leveraging the success of the BSN offering, along with its $3M in annual revenues, SIBE plans to penetrate additional markets nationally and internationally through direct sales and joint marketing agreements. SIBE recently announced its intention to acquire Urban Planet Mobile Media and Entertainment, Inc., the operator of the award-winning Urban Planet Mobile™ ("UPM") education software platform. The transaction is expected to close by year-end. Founded in 2007, UPM is an education technology company distributing its proprietary content through mobile carrier networks. The innovative company boasts revenue generating programs in over 40 countries. UPM appears poised to deeply penetrate its target markets with low-cost, in-demand solutions delivered over the fastest growing media, mobile networks. At present, it is estimated that 1.6 billion people, largely living in emerging markets wish to learn English. However, with the associated high cost of classes and the limited number of available qualified teachers in general, this opportunity has not been historically affordable or available to the masses until now. Today, UPM owns the largest digital library of English language courses that are available for use via the billions of mobile devices around the world. UPM creates and distributes its content for English language learners, and recently expanded into other areas such as literacy and mobile health. With mobile learning programs recognized for their social and global impact, UPM has one of the largest mobile distribution networks in the education industry and is currently working with more than 36 distributors and 30 mobile operators in over 40 countries worldwide. UPM's platform delivers content to all devices (mobile, tablet, computer) via SMS, IVR/voice, ringtone, apps & mobile web. Going forward, the domestic success and deep online solutions library offered by BSN combined with the mobile education platform offered by UPM abroad represents tremendous cross-sale and cross-solution opportunities and broad market penetration for SIBE. As a result, 2015 appears to be shaping up as a banner year for the Company with the potential of hockey stick-type growth as complementary firms join the SIBE family. Senior Analyst: Robert Goldman Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund. Analyst Certification I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. Disclaimer This Opportunity Research report was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research and Goldman Opportunity Research. The Select format reflects the Firm's internally generated stock ideas along with economic and stock market outlooks. Opportunity Research reports, updates and Microcap Hot Topics articles usually reflect sponsored (paid) research but can also include non-sponsored micro cap research ideas that typically carry greater risks than those stocks covered in the Select Research category. It is important to note that while we may track performance separately, we utilize many of the same coverage criteria in determining coverage of all stocks in both research formats. Research reports on profiled stocks in the Opportunity Research format typically have a higher risk profile, and may offer greater upside. All information contained in this report was provided by the Company via filings, press releases or its website, or through our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations. 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