MassRoots Inc (OTCMKTS:MSRT) Sinks Like a Stone After Quarterly
Within the two short sessions MassRoots Inc (OTCMKTS:MSRT) traded on the open market after releasing its latest quarterly report, the company’s share price slid 20%. Yesterday MSRT dropped to $1.08 per share, after trading for over $1.50 last week.
The third quarter report went online on Nov 16 and the market’s reaction has been rather clear, with two big red sessions immediately after it. There is good reason for this disappointed reaction, especially considering some of the loud and proud press releases the company was coming up with this summer. Here is a short summary of the report’s balance sheet:
- $345 thousand in cash
- $1.4 million in current liabilities
- $60 thousand in quarterly revenues
- $2.0 million in quarterly net loss
The most significant point here is perhaps revenues. Back in late August MSRT announced that after starting to “aggressively monetize” its digital properties, MSRT generated $25,000 in revenues over the course of 10 days. Obviously, over the course of the remaining 80 days of the quarter, the company generated about as much.
The company also informed shareholders it applied for NASDAQ listing in early September. Judging by this quarterly, it seems MSRT is in no hurry to get there, as the company is still far from fulfilling the requirements the exchange has for listing a company.
Last week MSRT announced the closing of a new $1 million in new financing. The deal involved the issuance of 815 thousand shares priced at $1.25 and 407 thousand warrants to buy shares at $3 per share. On the day the new financing was announced, the price slid 10%, perhaps understandably so, as investors were hardly thrilled to see big investors getting their shares at $1.25, while retailers were buying them at around $1.55 in the open market.
