Cyber Kiosk Solutions, Inc. (OTCMKTS:CYBK) f/k/a Dynasty Limousine Inc. Flies Higher On Marijuana Hype
Since the announcement from February 10 that Cyber Kiosk Solutions, Inc. (OTCMKTS:CYBK) will be providing age/id verification software for companies operating in the massively hyped marijuana industry they have made an even steeper jump up the stockchart. Starting from an opening price of $0.09 on the day of the announcement the company finished the week at $0.24 representing a total gain of 266%.
Interest in the company is at an all-time high resulting in a rather significant increase in traded volumes for the past two weeks. Although the 4.8 million shares traded on Friday couldn’t beat the 6 million from February 6 the dollar value of $1.07 million was an absolute record for the company.
But is there something else besides the hype that is driving the stock in an upward direction? Well, that is a tough question to answer. The past history of CYBK is filled with deals and agreements that ultimately amounted to nothing.
In December 2012 they entered into an agreement with Transaction Management LLC that should have brought 2 million in revenues for 2013. In January 2013 they delivered 3 fully functional kiosks to American First Equity for testing. If everything was approved CYBK were supposed to deliver 800 machines between April and September but that didn’t happen. Then 200 of their machines were supposedly bought by a company in the Dominican Republic. CYBK were also going to submit a lottery and gaming software solution to the Government of the Dominican Republic but apparently it didn’t get approved either.
There are even more examples but the fact of the matter is that at the end of September 30, 2013 CYBK was in an extremely dire financial state with:
- $-370 total current assets !!!
- $350 thousand total liabilities
- ZERO revenues
- $12 thousand net loss
The $1 million investment commitment from small cap investor Irwin Zalcberg revealed last week should be enough for CYBK to continue with their plans, at least for now. The company was also featured in an article tweeted by Jim Cramer, boosting even further the hype around them.
Even if you believe that the current deal with Tranzbyte Corporation (OTCMKTS:ERBB) will be different from the previous ones be sure to do you own due diligence and to take into consideration all the risks before making any trades.
The stock of ERBB closed the week with a strong performance. It surged by a little less than 29% and reached $0.03 per share.