Indo Global Exchange(s) PteLtd (OTCMKTS:IGEX) Cut in Half
Let’s put it mildly and say that Indo Global Exchange(s) PteLtd (OTCMKTS:IGEX) is a hard company to like.
The problem doesn’t lie with the press releases. In fact, few and far between as they are, they sound quite positive. Last month, IGEX issued its most recent PR and said that a major deal has been signed with a New Zealand-based financial technology company called INVESTOR Limited. Previously, the management team made some more announcements, but they all seem to be in a stark contrast to the financial statements.
On July 7, the same management team published a 10-Q and said that at the end of April, the company had no cash, a little over $7,600 in current assets, $530 thousand in current liabilities, $10,500 in quarterly revenues, and operating expenses for the quarter of $796 thousand.
Investors were appalled and so were the people from TAAD LLP – IGEX‘s accounting firm. On July 15, the management team admitted that they have published the 10-Q without the accountants’ permission and said that it should not be relied upon. Two months later, an amendment was filed, and it looks even worse than the original. Here’s a summary of the real figures:
- NO cash
- current assets: $149
- current liabilities: $550,572
- quarterly revenues: $10,344
- quarterly operating expenses: $461,733
The management team made a rather embarrassing mistake with the financial statement, but on the bright side, the amended 10-Q did give us some more vital information. More specifically, it gave us an idea of how bad the dilution has been. Let’s put it mildly again and say that it’s been absolutely diabolical.
The report says that during the nine months ended April 30, two unrelated parties received 140,000,000 shares as a cancellation of $6,800 worth of debt. That means that the unrelated parties got 140,000,000 shares at an average rate of $0.00004 per share. But that’s far from the end of the story.
Between May 8 and August 7, IGEX‘s printing press spewed out a further 396,151,000 shares in order to satisfy $20,647 worth of loans. The conversion rate on one of the transactions was $0.000006 per share (make sure you count those zeros correctly).
We can see that some people are (intentionally or not) ignoring those figures and they are spreading rumors about a potential press release in the very near future. Thanks to those people, IGEX was hovering comfortably above the $0.001 per share mark until a few days ago.
It took a couple of heavy blows on Tuesday and Wednesday, however, and after incinerating half of its value during yesterday’s session, it stopped at $0.0005 per share. Not really a shock for the people who were aware of the facts presented above in advance, but quite a nasty surprise for those who weren’t.
