Frozen Food Gift Group Inc (OTCMKTS:FROZ) Completes Acquisition, Stock Surges
Spend a few minutes researching Frozen Food Gift Group Inc (OTCMKTS:FROZ) and you’ll see that they failed somewhat spectacularly with their previous business plan.
A quick look at the 2013 chart reveals that the stock performance was absolutely shocking while the latest 10-Q tells us that on September 30, 2013, the company had just $71 in cash, $1.1 million in current liabilities, and an accumulated deficit of more than $1.3 million. A change in direction was crucial if the company was to survive and sure enough, on February 10, FROZ‘s former management team announced that they will be doing just that.
They weren’t the only company changing their business plan. The marijuana craze that began in January prompted a lot of small cap enterprises to enter the hot cannabis industry in an attempt to draw some attention to their otherwise dormant stocks. FROZ, however, had other ideas.
Instead of becoming just another newly-born pot stock, they decided to complete a reverse merger with a company called APT Group, Inc – a revenue-generating enterprise that sells the Motovox brand of mini bikes as well as a few other clever devices.
The press releases were garnished with some quite exciting figures and projections which immediately led to increased interest from investors. Volumes picked up and the stock started climbing. Unfortunately, the performance left a lot to be desired. There weren’t any particularly massive drops to speak of, but the surge was far from consistent.
Truth be told, there were some things that investors needed to consider. Like, for example, the fact that this wasn’t APT Group’s first attempt at going public. As we mentioned in one of our previous articles, a similar letter of intent was signed with ProTek Capital Inc (OTCMKTS:PRPM) back in August 2013, but the deal fell through.
Fortunately, the second attempt was much more successful. Around 12:30 PM on Thursday, APT Group announced the closing of the share exchange agreement. Not surprisingly, the market’s reaction was instantaneous. Four hours after the press release, FROZ was sitting around 58% above its previous close. The surge continued on Friday as the ticker shifted nearly $2.2 million worth of shares while adding another 50%. And it doesn’t seem willing to stop there. Forty-five minutes into today’s session, it’s a further 15% up.
It’s clear that the shareholders and the investors who jumped in on the hype surrounding the acquisition can now breathe more easily. The company name and the ticker symbol need to be changed, but FROZ‘s new management team promised to complete these actions as soon as possible.
They should also publish the audited balance sheet of the surviving entity in a timely manner. Several 8-K forms were filed as part of the deal, but none of them tells us anything about APT Group’s financial situation or about what happened to FROZ‘s liabilities. Hopefully, we’ll know the answers very soon.
FROZ wasn’t the only ticker to end last week on a positive note. Baristas Coffee Co (OTCMKTS:BCCI) registered a 34% jump while shifting around $4.6 million worth of stock. At $3.2 million, Triton Distribution Systems Inc (OTCMKTS:TTDZ)’s dollar volume wasn’t quite as impressive, but it too managed to add more than 30% to its value.
