Max Sound Corp (OTCBB:MAXD) Drops to New 52-Week Low
In yesterday’s session Max Sound Corp (OTCBB:MAXD) has one hell of a trip down the charts. The stock opened with a big gap down, then proceeded to slip much further, eventually closing 33.5% in the red. Selling was the order of the day, as 7.4 million shares changed hands by the closing bell. With this drop, MAXD lodged itself at a brand new 52-week low.
The company put up a press release after the closing bell on Tuesday. It was this release that unleashed hell at the opening bell on the next day. MAXD announced that the company withdrew its claims against Google in the Mannheim, Germany case. MAXD will instead seek “monetary and other relief” from VSL for an alleged breach of a licensing agreement.
MAXD further informed that a CA Superior Court judge ruled in MAXD‘s favor, confirming an “emergency arbitration award” against VSL. If you happen to have gone to law school, this might mean something to you, but most likely it won’t. Despite the wordy paragraphs that follow and the harsh language describing VSL’s alleged wrongdoings, investors cared little about all that and were obviously more focused on the fact that the case against Google – the big win that they were anticipating, that should have culminated in massive settlement payment, was dropped.
MAXD sliding down as fast as it did yesterday could be a strong indication that investors are losing their patience and are starting to abandon ship. The company is not really doing much on the business side of things and big money from patent infringement settlements seems to be its best bet, but the withdrawal of claims against Google does not give much confidence this sort of money is coming.
Here is what MAXD had on its books as of its latest quarterly for the three months ended Sep 2015:
- $20 thousand in cash
- $7.5 million in current liabilities
- ZERO in revenues for Jan – Sep 2015
- $7.5 million in net loss for Jan – Sep 2015
Whether the company managed to find its footing or the selloff on Tuesday’s news escalates further remains to be seen.
