Agoracom Blog

Who Is Augusta Industries $ Why Are The World’s Biggest Companies Their Clients And Why Did They Just Announce A Spin Out?

Posted by AGORACOM-JC at 11:36 AM on Thursday, October 5th, 2017

Augusta Industries (AAO:TSXV) is a superstar company that very few people small cap investors have ever heard of.  More than just lip service, take a quick look at the client rolls of their 2 subsidiaries. Once you do, you’ll understand why Augusta just announced a spin out transaction that will split the subsidiaries into two companies, making shareholders very happy.


1]  FOX-TEK – World leading solutions to various sectors including the oil and gas industry. With non- intrusive technologies including: fiber optic sensors and electric field mapping systems; FOX-TEK is able to accurately measure changes that could negatively impact clients’ operations, the list of which includes the following Tier-1 Energy Companies.

How strong are FOX-TEK’s client relationships? Read the following article written by Enbridge and published on its own website:

On it’s own, FOX-TEK would be a great small cap company – but they only tell half of the Augusta story.

2]  Marcon International – an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon’s principal business is the sale and distribution of industrial parts and equipment to clients that include government departments and global energy companies.


Investors can now begin to understand why Augusta wants to separate each of these fantastic companies into their own companies.  Specifically, Augusta Industries is aiming to deliver $25M in additional shareholder value with its Sensor Technologies spin out announcement on September 28th.  At the time of “Spin out”, Augusta will own 50 Million shares of Sensor Tech, and 100% of Marcon International, unleashing the potential for explosive growth through its multinational relationships and state of the art monitoring technology.

Augusta is a burgeoning beast in the Oil & Gas service sector with its multi-faceted approach to creating shareholder value for its shareholders. With a current 10M$ market cap and an anticipated 25$ million of value to be delivered to shareholders through the spin-out, in addition to the Second Business Unit Augusta Owns “Marcon International”, $3.8 Mil In Sales Yr end 2016. A spin out of Marcon can be valued at 3 x Revenue. Augusta stands to deliver both immediate value for current shareholders and long-term value for anyone else that discovers this unknown smallcap gem!


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