IMI's current market cap is $1.5 million, and it is in final...

IMI's current market cap is $1.5 million, and it is in final stage negotiations to acquire a technology company, which is likely to already be profitable and cashflow positive, with my reasoning explained below.

Hidden away in a seemingly benign "Chairman's address to shareholder" announcement on Friday was this statement:

During the year we have worked on sourcing and investigating a number of opportunities across a
range of industries and sectors.

On average we have undertaken a review of at least one new opportunity a month over the past year.

To date, we have rejected potential acquisitions on the basis that they have not met our investment criteria.

Given the weaker investor sentiment towards the resources sector over the last year, IMI shifted focus to the technology sector.

IMI now has one opportunity at an advanced stage of discussions, which your we hope to progress to the point of providing more detailed information in the near term

Given the fact they have assessed at least 12 projects in the last year, and rejected them all, I assume they must have found something a bit special

And in the annual report it was hinted they were after a business that was already cashflow positive and profitable:

"The Board’s priority continues to be completion of a suitable acquisition and to move forward as a profitable
undertaking."

ala Bulletproof Networks, which did this to the chart of SPA:

You would expect it to at least do a DGI on speculation of the potential acquisition:

DGI went to a $5 million market cap - from .003 to .014 - on talk of an acquisition that was not even in the final stages of negotiation.

$5 million market cap for IMI = .006, so .006 is reasonable, pre acquisition details being released, and could overshoot this, given management credentials.

Hopefully the eventual acquisition excites the market, like SPA... and not like QNA, which did this:

But even with QNA there was a great chance to profit as it surged from .003 to .011

The proposed acquisition should be well chosen, because IMI's director Richard Wadley previously served as CFO for multiple high profile companies, and was named CFO of the Year by C.F.O. Magazine in 1998.

And fellow director Paul Burton was acquisitions manager for Ipac (now AXA), pulling off the acquisitions that transformed it into the sprawling global conglomerate it is today www.axa.com/en/

Burton also grew revenue and profit by 700% whilst MD of TechDrill, and founded Westoria Capital, a boutique investment company.

Existing biotechs with potential are hot, but new technology listings are still hotter - check out recent start-up tech floats on the US market - because technology (cloud computing, mobile payments etc) is an emerging and likely multi-year trend.

And the best part is, IMI is yet to spike, relative to where it's been recently when it had no acquisition under negotiation, and prior to the current tech craze: