Integral Technologies, Inc (OTCMKTS:ITKG) Surges But Will It Last?
Yesterday Integral Technologies, Inc (OTCMKTS:ITKG) enjoyed above average interest from the market and after investors shifted over 570 thousand shares the stock of the company closed with a gain of 15.5% at $0.762. The performance was nothing short of impressive but is it anything more than a one-day spike?
We have been following ITKG for quite some time and in our articles we have often told you that their core product ElectriPlast, a non-corrosive, electrically conductive resin-based material seems to have a lot of potential and numerous uses in quite a few industries. The problem however is that so far ITKG’s attempts to commercialize the product have yielded very limited results. As a whole the financials of the company fail to inspire much confidence – at the end of 2014 ITKG had:
• $81 thousand cash
• $167 thousand total current assets
• $1.06 million total current liabilities
• $62 thousand revenues
• $1.1 million net loss
Out of the reported revenues for the quarter only $4200 came as result of ElectriPlast sales. In order to finance their operations during the second half of 2015 ITKG held 7 different private placements of stock selling a little over 4.7 million shares at prices ranging between $0.17 and $0.38 per share. The company also has a convertible note that can be turned into common shares at a price equal to 61% of the market price. The note is due on July 24.
Back in February, during a conference call, the CEO of ITKG stated that things are going to pick up speed – a deal with one of their key partners was supposed to be announced within 3 to 6 weeks. By now it has been more than 12 weeks and no such deal has been officially revealed. Despite the missed deadline the stock of the company managed to keep the majority of its price gains.
And this leads us back to yesterday’s trading. The reason for the enthusiastic reaction shown by the market was a new PR published by ITKG. It announced that a new conference call discussing the results of the company for the third quarter of their fiscal 2015 will be held on May 18. The PR also mentioned that during the call the company will discuss its recently patented battery technology.
In the next couple of days ITKG’s stock will remain highly volatile. The performance of the ticker will be influenced by the quarterly report that should be filed by Friday and by the information revealed during the conference call. Do your own due diligence and plan your trades accordingly.
