Liquidmetal Technologies inc (OTCMKTS:LQMT) Climbs Higher

Friday’s trading saw the stock of Liquidmetal Technologies Inc (OTCMKTS:LQMT) making another jump up the chart. The ticker closed the session with a gain of 8.38% at $0.144 per share. Throughout the day more than 2.8 million shares changed hands, which is the biggest daily volume for the stock since mid-March.

It seems that investors were happy to learn that during the annual shareholder meeting an increase of the authorized shares from 700 million to 1.1 billion had been approved. Usually such an increase would be met with a heavy dose of skepticism and fears about further dilution of the common stock but in LQMT‘s case things are a bit different.

While the company is indeed going to issue a vast amount of shares it will do so in order to receive equally as vast amount of funds. On March 10 LQMT entered into a securities purchase agreement for the sale of 405 million shares for a total of $63.4 million in proceeds. So far 105 million shares priced at $0.08 have been sold for $8.4 million. The rest of the shares are expected to be sold by August 17 with 200 million being priced at $0.15 and 100 million having a price of $0.25 each.

LQMT may have received a massive financial boost due to this deal but they will still have to turn those funds into more meaningful results from their operations. The annual revenues for 2015 reported by the company were 79% lower than the ones for 2014 and nearly 88% below the results for 2013. At least 2016 is starting way better and for the first quarter of the year LQMT managed to generate 168 thousand in total revenue. The management of the company expects that this year they will be able to secure 10 to 15 new customer orders compared to the 9 from last year.

LQMT remains a risky choice, though, and any trades involving their stock should be preceded by thorough due diligence.