Makism 3D Corp (OTCBB:MDDD) is Off to a Shaky Start

Yesterday we witnessed the sixth active session for Makism 3D Corp (OTCBB:MDDD), but despite the short trading history, the ticker managed to draw in quite a lot of attention. In just six and a half hours, MDDD managed to shift more than 194 thousand shares bringing the dollar volume to nearly $300 thousand.

Quite a lot of people seem interested but despite this, the performance remains somewhat shaky. Last Tuesday, the ticker registered a terrific session when it added no less than 150% to its value. The very next day, however, it took a heavy blow. After some more ups and downs, it is pretty much back where it started and while it’s still too early to make any sort of predictions about the future price movement, we can at least have a look and see what’s causing all the commotion.

Just two weeks ago, MDDD went under the name Advanced Cellular, Inc. – a shell company with no revenue and no assets. On October 29, the acquisition of Umicron Ltd was closed, the name and ticker symbol were changed and MDDD officially became a company aimed at developing, manufacturing, and selling 3D printers.

As you probably know, the 3D printing industry is scorching hot at the moment which could explain the increased interest from investors. But is it enough to justify the price of $1.27 per share and the resulting market cap which, at yesterday’s close, exceeds $75 million?

We’re not so sure. As a part of the share exchange agreement, MDDD published the 3D printer manufacturer’s financial statement in an 8-K form and it’s fair to say that things are not looking good. Here’s what Umicron had as of August 31:

• cash: $6,782
• total assets: $19,667
• total liabilities: $1,250
• no revenue since inception
• net loss since inception: $132 thousand

We should note that they closed a private placement a couple of weeks ago which should give the balance sheet a bit of a boost, but even in it, you’ll find some things well worth considering.

As part of the placement, 1 million MDDD shares were issued to unnamed investors for total consideration of $600 thousand. The thing is, the company has so far received only $350 thousand. The remaining balance will be paid when MDDD manage to manufacture and sell ten 3D printers.

When will that happen? It’s anyone’s guess. The company website greets us with an “order now” button which suggests that you can buy The Wideboy flagship printer immediately. When you click on it, however, you’ll see that it’s actually enticing us to sign up for their newsletter which will, supposedly, alert us “when sales commence“. Neither the filings, nor the press releases give us any launch date which means that all shareholders and potential investors can do, is keep their fingers crossed and hope for the best.

In the meantime, they might want to consider one more thing. The October private placement should give MDDD a little room to breathe in terms of financials, but the discounted stock also presents the people who bought it with an amazing opportunity for a profit. If the newly issued shares hit the open market, they will wreak havoc with the price.

With this in mind, the threat of a potential paid pump is getting bigger by the minute. We have yet to intercept any promotional materials, but we won’t be at all surprised if we see some emails or landing pages in the near future. We’ve seen countless penny stocks that have recently gone through a business plan change go through the same treatment and, as Pan Global Corp (OTCMKTS:PGLO)’s and Nutranomics, Inc. f/k/a Buka Ventures, Inc. (OTCBB:NNRX)’s charts suggest, things usually end up pear-shaped. Make sure you weight the risks carefully before jumping in.