HII Technologies Inc. (OTCMKTS:HIIT) Crashes Horribly
HII Technologies Inc. (OTCMKTS:HIIT) plummeted 59.68% down the charts yesterday, as the market reacted to the latest development surrounding the company.
As it turns out, HIIT is now in default on its Heartland Bank line of credit. As a result, the company will suffer various penalties, including all of its debt becoming due effective immediately, at an interest rate of 18.75% – which is a full 5% higher than the initial interest rate.
Under the circumstances, it is no wonder that the ticker opened up as low as it did and plummeted even lower. And that’s understandable – no investor likes hearing that his company of choice has been neglecting its obligations towards its lenders, as that can have dire financial repercussions.
And, in this particular case, it’s not like HIIT can afford to take any more heat. Its latest financial report showed that it is already neck deep in liabilities:
- cash – $1 million
- current assets – $13.34 million
- current liabilities – $20.39 million
- total liabilities – $32.54 million
- quarterly revenues – $8.5 million
- quarterly net loss – $3.13 million
Long story short – HIIT is one of the few companies in the branch on the OTCBB that is making revenues, however its efforts are bearing bitter fruit. The company has consistently failed to make ends meet, is struggling with crushing debt, and this latest development complicates matters even further.
Under the circumstances, it is no wonder that so many investors lost faith in HIIT and decided to abandon ship – just as it wouldn’t surprising to see even more shareholders decide to follow their example in the trading sessions to come.
