Information Architects Corporation (OTCMKTS:IACH) Sinks on Record-Breaking Volume

44% of Information Architects Corporation (OTCMKTS:IACH)’s market cap went down the drain yesterday while investors traded more than 25 million shares of common stock. Most people would be pretty disappointed after such a horrific drop, but it would appear that IACH‘s shareholders are not that bothered about it.

The discussion around investor forums is pretty heated up. A lot of traders say that they’ve talked to the company, many expect to see a press release coming out in the coming days and they reckon that it will be quite huge. Unfortunately, at least for the time being, this is all speculation. At the same time, when you do some digging around, you’ll see that there are more than a few fairly large red flags surrounding IACH.

For one, IACH is delinquent in its filings. The latest 10-Q covers the third quarter of 2012 and it shows that back then, the company had less than $10 thousand in total assets, around $823 thousand in current liabilities, and no revenue since inception.

More recently, IACH published a couple of 8-K forms and the one from April 9 tells us that some promotional websites have been spreading false statements around. The same document also shows that the company headquarters is located in a suburban house in Orlando, Florida.

Even the press releases aren’t particularly informative. Some famous people joined the Board of Directors recently, but other than that, details around IACH‘s situation and their operations is rather scarce.

The lack of any concrete information should certainly be enough to scare away most investors, but having gone through a few 8-K forms published in November 2013, we can see that there is at least a glimmer of hope for the shareholders.

Seven months ago, IACH completed the acquisition of a company called Dakota Creative Group LLC. That’s when the business focus switched from the medical sector (their main field of operations according to the latest report) to the entertainment industry. Apparently, IACH now wants to build a theme park which will have some unique rides, a hotel, and a golf course.

There is no information on the surviving entity’s financial situation, but investors reckon that it’s in a good enough shape and if rumors are to be believed, a lot of progress has been made over the last few months.

Hopefully, IACH will soon come out with some sort of confirmation about this either through a press release, or via an official filing. Until then, we would like to draw your attention to an interesting detail surrounding the merger between IACH and Dakota Creative Group.

There isn’t a whole lot of information about Dakota Creative available on the internet. There’s no website and there isn’t even a list of the people running the company. Thanks to the 8-K filing describing the merger, however, we can see that Dakota’s Managing Partner (the person who signed the contract) is called Dennis W Peterson.

A man that goes by the same name is featured in this article. We reckon that reading through it carefully before putting any money on the line might not be a bad call.