Blackbird International Corp (OTCMKTS:BBRD) Crashes Hard
There are two types of pink sheet companies. There are entities who, in spite of the liberal regulations set by the alternative reporting standards, go out of their way to explain to investors how bad things really are. There are companies like Blackbird International Corp (OTCMKTS:BBRD), however, who don’t.
Normally people tend to look at the press releases a company issues first before delving into the regulatory filings. On that front, quite a lot of investors would be pretty excited about BBRD before they open the financial reports. The company isn’t the most active OTC venture on the PR front, but when announcements are made, they are usually quite optimistic.
At the end of August, for example, the management team proudly announced that they have signed a joint venture with Help Mankind. The new partners will first build a plant which will manufacture electricity-generating equipment used by BBRD, and then, they’ll erect some electrical power plants in Sri Lanka. The previous press announcements inform us that the revolutionary technology is already producing electricity in several corners of the globe, and an update on Twitter from yesterday hints at a potential debut in India.
Basically, the news suggests that BBRD is a multi-million dollar company. The financial statements don’t.
The first thing that you’ll notice is that all the reports are actually scanned PDF documents which deprives you from the ability to search through them. That’s not a very nice feature if you need to make a spur of the moment decision, which might put off some of the investors. The ones who have enough time to spare will go on to read through the reports carefully and they will be left quite baffled.
Let’s start with the figures. The latest statement covers the quarter ended July 31, it was published yesterday, and it looks like this:
- NO cash
- $26 thousand in receivables
- $8.4 million in fixed assets
- $62 thousand in current liabilities
- NO quarterly revenue
- a quarterly net loss of $98 thousand
You’re probably in need of an explanation right now. We’ll do our best to provide it.
The news releases would have you believe that BBRD is the owner of the electricity-from-waves technology. The financial report, however, says that BBRD is in the process of acquiring the owner of said technology. It also says that the fixed assets consist of intellectual property which has already been acquired, but curiously enough, hasn’t been paid for.
Last but not least, the statement told us that the ticker has gone through some dilution over the last few months. It also told us that there was some convertible debt outstanding at the end of July. What it didn’t say was anything about the origins of the newly printed shares or the conversion provisions of the note.
In light of this, it’s not really a surprise that the ticker crashed hard yesterday. Very nearly a third of the value was wiped out which means that BBRD is now sitting at $0.006. Clearly a lot of people decided to run to the hills. Some of them might come back and wait for a bounce, but before they commit any money to BBRD, they should really think carefully about whether the risk is worth it.
