IFAN Financial Inc (OTCBB:IFAN) Climbs Above $0.60
IFAN Financial Inc (OTCBB:IFAN) doesn’t really look like the most appealing investment opportunity on the OTC Markets. The company failed rather catastrophically with its previous business plan of providing organic clothing for children. After it did a reverse merger (the SEC has said in the past that we should be careful around companies who perform this sort of actions), it entered the electronic payment industry.
Since then, members of the management team have appeared on various TV shows and they have said that the company’s products should be commercially available within “the next six months”. At the same time, however, IFAN themselves have issued no press releases or updates.
Once you take a look at the financials of the surviving entity, you’ll see that meeting the deadlines might be a tall order to fill. Here’s what they had at the end of August:
- $4,691 in cash and current assets
- $14,215 in total assets
- $3,114 in total liabilities
- no revenues since inception
- a quarterly net loss of $444,744
All in all, there’s nothing to suggest that IFAN is going to transform the online payment industry. Yet, investors act as if that’s exactly what’s going to happen.
Thirty-one days ago, the ticker was sitting firmly at $0.10 per share. Trading was slow and nobody seemed all that interested. Since then, it has registered only two red sessions and after gaining about 3% on Friday, it’s sitting at nearly $0.61 per share. This means that in a matter of just one month, IFAN‘s market cap increased by more than 500%. Not bad, you might be thinking, but this sort of jumps don’t happen out of thin air and if you’re taking a look at the company for the first time, you’re probably wondering about the reasons behind IFAN‘s relentless surge.
Unfortunately, all the gains are the product of a paid promotion. The pumpers have a total budget of $3.5 million and they’ve put it to use by creating a landing page and sending out some glossy brochures. As is often the case, the promotional materials are full of bright predictions and of comparisons between the penny stock that has almost no money in the bank and industry giants like PayPal.
In light of IFAN‘s dreadful financial situation, most of the claims do indeed sound ridiculous. Nevertheless, investors are jumping in and although the ticker isn’t really the most actively traded stock on the OTC Markets, volumes are quite a bit higher than they used to be a month ago. And this, in turn, is creating quite the opportunity for certain people.
As we mentioned a couple of weeks ago, back in 2013, the aforementioned people bought 214,000 shares of common stock at $0.025 per share. Thanks to the 140 for 1 forward split effectuated a couple of months ago, they could now be holding up to 29,260,000 shares of IFAN common stock. How much did they pay for them? $5,350. How much can they pocket if they start unleashing them on the open market? About $17.5 million.
