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ASX-listed tech nanocap Firstwave Cloud Technology (ASX:FCT) jumped 33% on low volumes intraday Monday as the company inked a $400,000 deal with Claro, a major telecomm provider in the Dominican Republic.
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What Claro is buying off FirstWave is the latter’s IT systems management tech – FirstWave deals in software that provides businesses with a “health monitoring” system when it comes to in-house IT.
FirstWave, of course, is leveraging AI. It noted that its Network Management Information System (NMIS) software will soon get a new AI-jacked feature called “Model Context Protocol” that, according to FCT’s website, will allow Claro to manage over a thousand unique staff devices.
(It also pointed to its “recently released Message Bus technology.”)
To explain it in layman’s terms: Claro has bought software from FirstWave that allows it to better manage its own IT systems.
Claro was formerly called CODETEL, and brief research suggests the company has up to 5,000 employees. While the $400K contract value might not be the world’s largest tech deal, it does provide FirstWave with nearly half a million in cash right now, today, considered by the stock as “gross profit.”
Dominican Republic snapshot
So why the Dominican Republic? It appears FirstWave may view the Claro deal as a potential foot in the door for future contracts.
Claro is part of a consortium ultimately listed on the NYSE called America Movil, which uses the namesake of Mexico’s seventh-largest telecommunication provider. A pivot into Mexico may be what FirstWave is more interested in.
An America Movil report issued in February of this year showed 2024 Q4 revenue came in up +18% to 237 billion Mexican pesos – or, A$19.24 billion.
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With a wide footprint over Latin America, the portion of revenue that came from its Caribbean operations (let alone that of the Dominican Republic specifically) wasn’t immediately obvious.
A recent report from Focus Economics found “economic activity” grew +3.2% YoY in May of 2025; the jurisdiction has a population of some 11.3M, while a report from March declared smartphone penetration in the Dominican Republic sits at around 90%.
FCT last traded at 1.6cps.
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