Managerial Changes Give Mindpix Corp New (OTCMKTS:MPIX) a Push
A lot has been going on around Mindpix Corp New (OTCMKTS:MPIX) in the recent weeks. First, we saw that the former CEO, President and Treasurer of the company, Mr. Armando Almirall resigned from all of his positions and one of the Directors, Mr. Rick Garson took over his responsibilities while they are able to find a new, suitable person to take the helm. Then, on April 26 MPIX announced that they have managed to find a new CEO. His name is Victor Siegel and his CV sounds absolutely amazing. As a result of this MPIX‘s value has risen by as much as 79% since the press release came out, but the question on our minds is: “Will they be able to retain the upward tendency in the long run?”.
Well, they are in the entertainment business, and they say that they have some rights for the distribution of music created by some of the greatest names in the industry like Elvis Presley, Bob Dylan, The Who etc. MPIX say that they are not the exclusive distributor, but having in mind the huge fanbase that these musicians have, we thought that we’ll find millions in revenue and a healthy net income in the financial statement. We didn’t.
Here’s what we saw instead:
- current assets: $10 thousand
- current liabilities: $203 thousand
- yearly revenue: $103 thousand
- yearly net loss: $1 million
If we have to point out something positive about the whole report, we would say that MPIX have managed to take care of most of their liabilities during 2012 but, unfortunately, the cost of this is rather steep. Due to the lack of cash, they were forced to issue a total of 558 million common shares in order to pay some of the debt off and if they are not able to reach profitability soon, this stock could cause quite a lot of dilution.
All this means that MPIX‘s new CEO, Mr. Siegel will have his work cut out for him getting the all- important positive cash flow going – something that the previous management team failed to achieve. And we were really rather perplexed by this fact since, as we mentioned, the business sector in which the company operates right now could be extremely profitable. That is why we decided to do a quick check on the people who previously ran MPIX and that’s where our research got really interesting.
While the reasons for the resignation of Mr. Almirall, are not outlined in the press release, a quick research shows that he was apparently arrested and charged with battery on law enforcement officer. While we weren’t able to find proof that he was found guilty or that the lawsuit has even started, we’re pretty sure that a sentence will probably affect MPIX‘s reputation with investors in a negative way. Still, he’s gone now and you’re probably thinking that this is a good thing.
Well yes, it is but there could be some other underwater stones. The person who took over from Mr. Almirall is called Rick Garson, as we mentioned, and he’s been on the Board of Directors for years. Now that Victor Siegel is at the helm, Mr. Garson will continue his work for MPIX as the Chairman of the Board. That is still quite an influential position which means that we had to do some research on him, as well.
It turns out that he is also in charge of an entity called ZZYX Entertainment – it’s privately held, it has its offices in the same building as MPIX and we see that name in a lot of the press releases over the years. ZZYX are apparently working as concert promoters and we found that they have announced a big event in China back in 2010. Unfortunately, it would appear that the concert was canceled and as we can see from this article, people weren’t exactly happy with Mr. Garson and his company. Now that he is announcing the changes in MPIX‘s management team, we hope that this won’t turn out to be just another failed event of his.
