Friendable Inc. (OTCMKTS:FDBL) Drops Below A Penny
Friendable Inc. (OTCMKTS:FDBL) dropped another 16.95% in Friday’s trading session – and is it really any wonder that it did just that?
After all, Friday was the day in which FDBL‘s latest 8-K hit the web, all but announcing that the company is still up to its old tricks. Apparently FDBL has issued a convertible note that had a provision, allowing its holders to transform the debt into 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”.
Perceptive investors would have already noticed that this provision is quite similar to the conditions of the company’s other notes outstanding – except it is even more toxic, due to the “ceiling price”.
All in all, it’s not difficult to see why investors were not thrilled about this state of developments. Not only is FDBL not doing anything to fix all the stock-related problems that are currently choking the life out of investor value, but it is adding even more to the mix.
Meanwhile, we’re still talking about a company whose latest financial report looks like this:
- Cash – $19 thousand
- Total current assets – $300 thousand
- Current Liabilities – $2.5 million
- Revenues – $11 thousand
- Net loss – $1.2 MILLION
True, media exposure has afforded FDBL some popularity, but its other actions hardly inspire confidence – which is probably why the company is having such a hard time retaining its ground.
Of course, this does not meant that FDBL can’t spike once more, and in doing so create opportunities for profitable trading. What it does mean is that investors trying to exploit such opportunities should be doubly careful, because the pitfalls in their path are many and varied.
