Friendable Inc. (OTCMKTS:FDBL) Crashes Right Back Down
Friendable Inc. (OTCMKTS:FDBL) crashed 11.03% down the charts yesterday, in spite of publishing a PR about its latest product placement exposure.
Evidently even the fact that FDBL has made an appearance in RedFoo’s “Light’s Out” video wasn’t enough to keep investors enthusiastic about the company. After all FDBL had already jumped two times when it was endorsed by Jennifer Lopez and Austin Mahone, so this turn of events is hardly new or particularly exciting, but still – it is hardly a reason for the ticker to crash. So what could have caused FDBL‘s fall?
Well, one possible explanation is that the owners of the convertible notes that the company had outstanding also saw the new PR and decided that this would be a good moment to make a profit by cashing in some discounted shares. And it would only make sense for them to make use of the volatility an optimistic press release usually affords the ticker.
As of now we can’t really know for sure if that is exactly what happened, but it may well be, seeing as how most of the company’s debt carries horrible toxic provisions which allow the noteholders to convert it into shares of FDBL common stock at a rate of “50% of the lowest closing bid price (subject to a $0.004 ceiling price) for the common stock during the twenty (20) consecutive trading days immediately preceding the conversion date”.
Alternatively, it may well be that investors once more saw past the facade FDBL projects, and saw it for what it actually is – an OTC Markets penny stock company that talks big, but is yet to back its words with actual commercial achievements.
Simply put, there is no way to know how FDBL is doing right now, before its financial report for the current quarter hits the web – and that moment is still a long way away. Before it finally rolls along, all we’d have to go by is the company’s PR – and, if there is anything that OTC Markets experience teaches, it is that the announcements of pinksheets tier companies should be taken with a grain of salt.
