FutureWorld Corp (OTCMTKS:FWDG) Loses Momentum Despite Dividend News
When on Wednesday in an official post FINRA announced the final details of FutureWorld Corp (OTCMKTS:FWDG)’s dividend the stock of the company simply exploded moving from a little over $0.001 to a high of the day of $0.0039 in less than an hour. Although it closed a bit lower at $0.003 the daily gain of 150% is still massive.
With the record date of the dividend been set to June 12 many expected the impressive chart performance to continue. And indeed in the minutes after yesterday’s opening bell rang FWDG soared even higher up the chart hitting $0.0049 per share. The ticker lost its footing right after that though and quickly dropped back down. By the time the session came to an end FWDG were just 3.3% in the green at $0.0031. With the last day for investors to become eligible for the dividend being today will the ticker enjoy a better session?
Well, it is true that quite a lot of investors might be tempted to buy in and thus receive free shares in FutureLand Corp (OTCMKTS:FUTL). At the moment FUTL are trading at $4.5 per share. Not to mention that as a result of the decision to rescind the spin off of FWDG’s HempTech Corp. subsidiary investors are going to receive an increased FUTL dividend – the initial rate of 1 FUTL share for every 300 FWDG shares owned was amended to 1 FUTL share for every 250 FWDG shares.
Before you get too excited though you might want to take a look at our previous article about FutureLand. In it we warned you about several rather serious red flags surrounding FutureLand Corp. The entity was formed through the reverse capitalization of FWDG’s Future Properties LLC subsidiary and the public company Aegea Inc. On June 8 well after the required deadline Aegea filed its annual report for 2014 and it showed a pretty horrific picture. At the end of last year the company had:
• ZERO assets
• $797 thousand current liabilities
• ZERO revenues
• 563 thousand net loss
At the same time the company has defaulted on some of its convertible notes and the owner of a $58 thousand note now demanded the payment of $79 000 by June 3. Keep in mind that FUTL’s current share price was only possible thanks to the 1-for-400 reverse split performed at the start of May. So what do you think will happen with the price when millions of shares are suddenly issued to investors who will be more than likely looking to cash in at the current market price? Or if the convertible notes are turned into freshly issued shares?
If you are one of the investors who jumped into FWDG lured by the dividend don’t forget that the shares you will receive won’t become free trading until a S-1 registration statement has been filed. In the PR from yesterday FutureWorld stated that they are in the later stages of the preparation of S-1 filing but no date has been given so far.
