Lot78, Inc. (OTCMKTS:LOTE) Skyrockets On Positive News
Lot78, Inc. (OTCMKTS:LOTE)’s stock has been sliding down the charts since June and it seemed like the ticker was headed for rock bottom. Yesterday’s session, however, proved the opposite as the stock jumped on positive news with huge amount of traded shares.
The session started off slowly with few trades and a price that was going in a straight line. Things, however, started changing after it was announced that LOTE will launch distribution with Bloomingdale’s US. This caused the price to instantly head north and people were buying the stock like hot cakes.
What spiced up things even more was the news that LOTE have entered into a definitive agreement with Banque Benedict Hentsch & Cie SA for the principal sum of $350 thousand at a rate of interest of 10% per annum.
At the end of the day the ticker had gained a mind-blowing 219% going from $0.102 to $0.3257 on a volume nearly 20 times their average. The total amount of shares that had switched hands during the session came at 3.6 million and helped generate a trade value of $951 thousand.
Why was the additional financing needed. A quick look at the numbers of prime interest from their Q2 report may shed some light on the matter.
- cash: $949
- total assets: $153 thousand
- total current liabilities: $1.1 million
- total liabilities: $1.4 million
- revenue: $92 thousand
- net loss: $154 thousand
As it’s obvious the company was in dire need of some fresh cash inflow. We reckon that it was also needed in order to launch the distribution with Bloomingdale’s, because we are sure that $949 in the bank would prove insufficient for the huge shipping that will be required.
All in all the company seems to be headed in a good direction, however, be sure to do a lot of due diligence and weigh out the risks, as LOTE are yet to prove that they can operate at a profit.
A big surprise in yesterday’s trade session came from InVivo Therapeutics Holdings Corp (OTCBB:NVIV), who jumped 11% in price, closing the session at $1.57 per share. Nearly 3 million shares were traded and that helped generate a trade value of $4.5 million.
Another company that registered big dollar volume in yesterday’s trade session was Press Ventures, Inc. (OTCBB:PVEN), who lost 16% in value, but before doing so had quite a lot of traded shares, which helped generate a trade value of $2 million for the day.