AvWorks Aviation Corp (OTCMKTS:SPLI) Goes Green Again
AvWorks Aviation Corp (OTCMKTS:SPLI)’s shareholders weren’t feeling particularly well at the start of yesterday’s session. Lack of press releases and a few negative articles on Seeking Alpha had resulted in a 34% loss after less than a week of trading.
The first few minutes of the session suggested that the descend is about to continue. SPLI opened the day at $0.2717 (slightly below Tuesday’s close) and started sliding almost immediately. About half an hour in, it hit an intraday low of $0.2444. It recovered some of the lost ground and spent the next few hours moving both up and down.
At one point, around 2PM, however, it embarked on a more determined run. It didn’t really have the time to register some impressive gains, but it did manage to hit an intraday high of $0.3049 a few minutes before the closing bell and finished the day 11% above Tuesday’s close. There’s plenty of things to suggest that today’s session will be even more exciting.
The reason for yesterday’s sudden change in direction was a press release issued by the company. As you probably know, SPLI and the recently announced merger with Vapor Group Inc. have been surrounded by controversy over the last month or so. Many investors were excited about the new business plan, but there were also some people who weren’t entirely convinced.
The management team decided yesterday that it’s finally time to clear all the confusion and announced that, although the 8-K from January 22 would have you believe otherwise, the merger between AvWorks and Vapor Group has actually been completed.
Dror Svorai, SPLI‘s CEO, said that all the necessary documents have been filed with Florida’s Secretary of State and announced that changing the company name is just a matter of time.
Mr. Svorai also emphasized on the fact that over the last couple of days they’ve been filing re-reviewed reports from the time when SPLI was in the aviation industry in an attempt to boost transparency. He promised that the consolidated financial statements for 2013 should come out “in the coming days“.
All in all, there’s no shortage of optimism spurring out of yesterday’s press release and earlier today, SPLI‘s management team gave their shareholders yet one more reason to cheer. Another PR hit the wire just minutes before the opening bell and it informed us that SPLI has entered into an agreement to acquire controlling interest in a company called American Vaporizer LLC – the marketer of the “American Smoke” brand of premium electronic cigarettes.
Some restricted shares will be issued and some cash will be paid in order to complete the transaction, but according to SPLI, the revenues coming from American Vaporizer should give the company another boost.
All in all, it would appear that things are finally coming together. The buzz around the message boards is quite strong and, about an hour after today’s opening bell, the ticker is in the green (albeit only just). An investment is not risk-free, though.
Let’s not forget that, as we mentioned back in February, Mr. Svorai has been involved with some other penny stock companies in the past and he has had some serious legal problems. You should also bear in mind that not that long ago, investors were pretty excited by the opportunities presented by American Heritage International Inc (OTCBB:AHII) – another OTC-listed e-cig manufacturer. It’s pretty clear from the chart on the right that things aren’t going quite according to plan at AHII‘s camp.
Doing a lot of due diligence and weighing the risks carefully is absolutely essential before putting any money on the line.
