Friendable Inc. (OTCMKTS:FDBL) Explodes After Announcement
Friendable Inc. (OTCMKTS:FDBL) managed to add an amazing 165.93% to its market value yesterday, in the span of just one session – and by the look of today’s green opening, it may do some more climbing in today’s session as well. So what’s wrong with this picture?
In short – everything. The company, formerly known as iHookup Social Inc., published a loud and boastful PR, which oddly enough, contained no details on the matter at hand. What are the names of the “celebrity partners” and the “major advertising agency” that the company has entered into an agreement with? There doesn’t seem to be any information about that, which is extremely suspicious.
Then again, suspicious activity is hardly uncommon among OTC Markets underachievers – and a single glance at FDBL‘s latest financial report certainly outlines the company as one of them:
- Cash – $15 thousand
- Total current assets – $222 thousand
- Total current liabilities – $1.7 MILLION
- Annual revenues – $151 thousand
- Annual net loss – $3.2 MILLION
Those numbers are atrocious in their idleness and mediocrity, so it may come as a shock to anyone who hasn’t read the report in its entirety that they aren’t even the worst red flag sticking out of FDBL‘s financials.
No, by far the most grim detail that the annual report for the fiscal 2015 has to offer is the fact that almost half a million of the company’s liabilities are in the form of toxic convertible notes that are currently due and payable. Most of that debt can convert into common stock at a 50% discount of the lowest sale price for the common stock 15 to 25 days prior to the conversion date.
Long story short – FDBL may talk big, but a bit of due diligence reveal its words to be hollow. Investors are advised to do their own due diligence and pay careful attention to the red flags that will inevitably crop up once they start looking in the right places.
