Interactive Multi-Media Auction Corp (OTCBB:IMMA) Topples Over
We didn’t set our expectations too high when we started researching Interactive Multi-Media Auction Corp (OTCBB:IMMA). We were still left disappointed.
The company was incorporated in the British Virgin Islands in July 2012. Right now, almost three years later, they don’t have much to show for themselves. There is a website, but it appears to have been hastily put together and most of the links lead you to a “coming soon” page. According to the latest 10-K, IMMA has only one employee and the quarterly report for the period ended January 31 contains the following figures:
- total assets: $0
- total liabilities: $84,045
- revenue since inception: $0
- quarterly net loss: $8,580
And all of this was traded at more than $1 per share not that long ago. What’s more, at the end of April, some people were writing articles, telling everybody that pouring cash in IMMA is actually “a unique opportunity to invest in live-streaming art auction events”. Investors were reporting cold calls that were pressuring them to take action, and a few hours before yesterday’s opening bell, Future Money Trends told their subscribers that “IMMA is on a clear upwards path”.
In other words, there was no shortage of people trying to convince you that IMMA is a solid investment opportunity. We’re quite curious to find out what they think of the stock at the moment.
The ticker’s performance since the beginning of the week has been absolutely catastrophic. The drop started on Monday when IMMA lost about 15% of its value. Future Money Trends tried to persuade everybody that this is nothing more than a pull back, but yesterday, the stock proved them wrong. In a matter of six and a half hours, it obliterated 51% of its value and it finished the day at $0.67 per share.
So, by the looks of things, when people were pouring money in IMMA at more than $1.60 per share, they weren’t investing it in live-streaming auction events. They were actually throwing it in a bottomless pit. But is there anything that could turn things around?
Well, the company announced a few weeks ago that the location for IMMA‘s first ever auction has been chosen. It will take place in San Jose, Mexico and the management team expect to see a lot of high-profile Hollywood stars taking part. They didn’t give us an exact date, but they did say that they want to organize it in November 2015.
That’s six months from now which is an awful lot of time in Pennyland and the lack of assets brings in quite a lot of uncertainty around the whole thing.
The really big problem is that while you’re waiting to see what can come out of this, some people might be eager to take their profits. As you can see from this prospectus, back in 2013, some shareholders owned a total of 4.7 million shares of IMMA stock. The company was trying to go public and that’s why, the aforementioned shareholders sold those 4.7 million shares to some unnamed investors at a price of $0.15 per share. In February, IMMA decided that they should execute a 4 for 1 forward split which turned the 4.7 million pre-split shares into 18.8 million post-split ones. At yesterday’s close, those shares are worth about $12.6 million.
There’s one more thing. The SEC aren’t exactly fond of people calling you on the phone and telling you how great this or that company is, so they might decide to take action. If they do, yesterday’s 51% drop will be the least of IMMA‘s worries.
