Joymain International Development Gp Inc (OTCBB:JIDG) Accelerates for no Apparent Reason
Like many other OTC companies, Joymain International Development Gp Inc (OTCBB:JIDG) started off with an ambitious business plan. And like many other OTC companies, they failed to get the idea off the ground.
The company was previously known as Advento Inc and it wanted to sell shower cabinets. Nothing came out of this and in 2013, there was a change in control. A reverse merger came about a year later, some new people took the helm, and the stock received its current ticker symbol. JIDG is now in the business of developing and selling healthcare related products.
Last year, the company signed a distribution agreement which gave it the right to sell a healthy energy juice called Yolexury in China, and thanks to it, JIDG started generating revenues during the quarter ended January 31, 2015. And it literally hit the ground running. Here’s what the 10-Q for the period looks like:
- cash: $734 thousand
- current assets: $1.2 million
- current liabilities: $94 thousand
- quarterly revenues: $1.3 million
- quarterly net loss: $13 million
Seven-figure sales during the very first quarter of revenue generation is not something you see every day in Pennyland. And while some people will probably say that the net loss is colossal, they should bear in mind that it was mostly due to paying some of the expenses with stock rather than cash.
All in all, the 10-Q suggests that the change in the business plan has been a good idea, but despite this, the report failed to generate any sort of excitement around investors. It came out more than a month ago, but during the following three weeks, JIDG remained thinly traded. Now, though, it’s picking up speed.
Over the last three sessions, it ran from $0.25 per share all the way to $0.70 and yesterday, it also managed to rack up a dollar volume of nearly $240 thousand which goes to show that people are paying attention. The increased interest doesn’t seem to be caused by a press release or a promotion which makes the whole thing a bit strange, but nevertheless, some of you probably reckon that once people hear about JIDG‘s prospects, they will start jumping in and the stock will become more consistent.
Time will tell if this is indeed about to happen or not, but in the meantime, you should probably take a look at a recent registration statement. It covers the resale of more than 50 million shares of common stock, most of which were originally sold during a private placement at a rate of $0.03 per share. The statement was declared effective yesterday which goes to show that the people who own the aforementioned shares can unleash them on the open market and walk away with some amazing profits.
They are not the only ones. Back in 2012, when JIDG was still in the shower cabinet business, the company was trying to get its stock listed on the OTC Markets. That’s why, it sold a total of 515,000 shares at a price of $0.05 per share. About a year later, JIDG executed a 300 for 1 forward split which turned the 515,000 pre-split shares into 154,500,000 post-split ones. And they were all purchased for a grand total of $27,750.
At yesterday’s close, those shares are worth about $108 million.
