MassRoots Inc (OTCMKTS:MSRT) Files Application For A NASDAQ Uplisting
Yesterday Mass Roots Inc (OTCMKTS:MSRT) issued a new PR announcing that they have filed an application to become one of the companies listed on the NASDAQ exchange. The news got investors excited and as a result the stock of the company closed yesterday’s session with a gain of over 13% at $1.33. The traded volume also enjoyed a significant increase with more 231 thousand shares changing hands.
Getting too excited, however, may be quite risky. The company has to meet the necessary requirements for the uplisting which may turn out to be rather difficult. MSRT are trading at respectable prices of over a dollar but their financials remain extremely underwhelming. The latest quarterly report showed that as of June 30 MSRT had:
• $171 thousand cash
• $1.1 million total current assets
• $481 million total current liabilities
• $2126 revenue
• $1.51 million net loss
At the end of August MSRT‘s users reached half a million allowing the company to generate $25 thousand in revenue in just 10 days. An encouraging achievement but MSRT will have to do a lot better if they want to offset the massive losses.
At the same time investors must keep in mind that the main source of funds for the company has been the sale of equity. Between March 24, 2014, and May 1, 2014, nearly 3 million shares were issued at $0.10 each. From September 15, 2014, to March 11, 2015, a total of 1,732,000 shares were sold at 50 cents per share. In April, this year, close to a million shares saw the light of day at $0.60 while more recently 1.4 million shares were sold at less than $0.75 each, which is still 43% below the current market price. Then you can add the 936,341 shares issued through the exercise of warrants with an exercise price of $0.001.
The NASDAQ application may continue to influence the stock in the coming days. The red flags are still there though. With millions of underpriced shares that could devastate MSRT if they are unleashed on the open market any trades involving the ticker should be preceded by careful planning and extensive due diligence.