Investors Return to Abtech Holdings, Inc. (OTCMKTS:ABHD)
Abtech Holdings, Inc. (OTCMKTS:ABHD) once again managed to get investors’ attention. And as the market reacted to the recent press release made by the company, the ticker jumped up and down on the stock chart. It opened at $0.7 immediately shot up to $0.725 and what followed was nothing short of a roller-coaster ride. Ultimately at closing time the stock was sitting at $0.68, or around 4.6% higher than the previous close. The somewhat disappointing gain came as a result of significant traded volume with more than 800 thousand shares changing hands compared to the average of 90 thousand.
ABHD specializes in creating environmental techniques for the prevention of water pollution. They have developed and patented the Smart Sponge, a technology possessing oil absorbing capabilities while effectively removing hydrocarbons from polluted waters. But the company has been going through some rough times and that can be clearly seen in their financials. At the end of the first quarter of 2013 they had:
- $1.2 million cash
- $1.7 million total current assets
- $2.7 million total current liabilities
- $99 thousand revenues
- $1,4 million net loss
ABHD are still generating revenues but at an extremely high cost. Their amount has decreased by 58% compared to the same period last year and 35% compared to last quarter of 2012. Cash reserves have also been depleted by half. Somethings are helping the company move along with their business plan though.
On April 11 the company converted $1.8 million worth of convertible notes into 2.6 million shares making the price per share at around $0.7. Some more good news came on June 25 when ABHD entered into an agreement with Dutchess Opportunity Fund, II, LP, according to which the latter committed to the purchase of up to $2 million common shares over the course of 36 months. So at least for now the company has secured its financial stability.
In light of the recent announcement that they have been awarded with a project for the installation of stormwater systems, the high degree of interest in the stock should persist for some time. The project is expected to begin in the summer and as a multy-phase program is supposed to be worth up to $12 million. ABHD have a long way to go if they want to achieve a positive balance sheet or at least reduce their immense net loss but the recent developments are encouraging. Also worth mentioning is the fat that the last pump campaign for them dates back to 2011.
And wouldn’t you know it yesterday we had a perfect example of a failed pump. The stock of Dephasium Corp (OTCMKTS:DPHS) was nearly slashed in half after The Stock Psycho and Darth Trader started touting the company. Xumanii, Inc. (OTCMKTS:XUII) also slid down a bit despite the ongoing promotion for more than a million dollars.
