DirectView Holdings, Inc. (OTCMKTS:DIRV) Steps on the Brakes
Should law enforcement people wear cameras? Following recent events in Baltimore, the opinion that policemen should wear cameras to minimize controversy and potentially lethal accidents is gaining the upper hand, it seems. DirectView Holdings, Inc. (OTCMKTS:DIRV) is one OTC stock that is trying to make the most of this impending shift.
Trading relatively thinly at sub-penny levels since late February, DIRV started picking up some volume in recent weeks. After announcing an agreement with NASDAQ-traded xG Technology Inc. (NASDAQ:XGTI) on April 30, under which the companies will collaborate to make a wearable body camera, DIRV shot up to dizzying new highs and went from half a cent per share to an intra-day high of over $0.02. With the stock becoming heavily overbought, yesterday’s retrace was all but inevitable.
In our previous article on DIRV, we looked at the curiously timed spike the ticker logged in early 2014, when it rode the pot stock hype train hard, only to crash disastrously within a month and a half from that spike. How much better will this new surge in interest and increased liquidity pan out?
The company’s balance sheet as of December 2014 does not inspire a lot of confidence:
- $13 thousand in cash
- $84 thousand in total assets
- $4.7 million in total liabilities
- $0.51 million in annual 2014 revenues
- $1.23 million in annual 2014 net loss
Those deflating numbers are underpinned by a 1-for-30 reverse split that DIRV executed in mid-March 2015. xG Technologies on the other hand, while trading on the NASDAQ, is currently about halfway through its grace period before it gets delisted from the exchange due to non-compliance with the $1 minimum bid rule, is priced at $0.36 per share and commands a market cap of about $15 million.
Yesterday DIRV put up a new 8-K filing, detailing a newly issued convertible note. The principal amount under the note is $115 thousand and this is convertible into DIRV shares at a 30% discount from the lowest traded price of the stock, 30 days prior to conversion.
