Dakshidin Corporation (OTCMKTS:DKSC) Propelled by News and Excitement
The last seven years have been pretty tough for Dakshidin Corporation (OTCMKTS:DKSC) and its shareholders. That’s what J. Mark Seaton, the company CEO, said in a letter dated March 17. He also announced, however, that he and his team are committed to reviving the company and bringing value to the long-suffering shareholders. He was quick to point out that there were absolutely no plans for a reverse split.
Another press release hit the wire about a month later. It announced a Letter of Intent between DKSC and The Tyburn Group according to which Dakshidin were about to purchase some “selected assets“. Unfortunately, the closing of the deal was dependent on the completion of a one-for-ten reverse split.
Investors were not amused and in a matter of just six and a half hours of trading, DKSC lost 36% of its value. The management team realized that something had to be done.
On June 6, DKSC said that after some tough negotiations, they have managed to convince Tyburn that a reverse split is not needed which was enough to change the market sentiment. Volumes started picking up and the ticker exited the triple-zero levels.
About an hour before yesterday’s opening bell, DKSC said that the acquisition deal has been closed. Apparently, Dakshidin is now a proud owner of a special prepaid payment system that is well suited for the people who don’t want to own a bank account, but would like to take advantage of paying via a plastic card. The press release said that the medical marijuana industry can benefit from the product as well.
As you probably know, “marijuana” has turned into something of a magic word in Pennyland. If you still have doubts in its powers, you might want to take a look at DKSC‘s performance yesterday. The ticker opened the day with an 8% gap up and started running immediately. A 52-week high of $0.0041 was hit a few minutes later and although it failed to sustain the pressure at these levels, DKSC still managed to close the day at $0.0027 which is a respectable 17% above Monday’s value.
The chart movement was not exactly consistent, but many people believe that yesterday’s session would be the start of a determined run that could take DKSC higher than anyone has ever imagined. It’s up to you to decide whether you want to trust those predictions or not, but while you’re contemplating the options, you might want to consider one or two things.
No details around the acquisition were disclosed in yesterday’s press release which means that we don’t know how DKSC paid for the system. One thing that we do know, however, is that on March 31, the company had:
- NO cash
- NO assets
- NO revenues since inception
- $113 thousand in liabilities
- $101 thousand in quarterly net loss
Another thing that we do know is that DKSC issued 97 million shares at a rate of $0.00005 per share as a conversion of debt.
The press releases also tell us that while the reverse split has been canceled, DKSC still plan to increase the number of authorized shares upon approval from the shareholders. This, we reckon, is something you should definitely bear in mind while making your investment decision.
