Medient Studios Inc (OTCMKTS:MDNT) Shows No Signs of Stabilizing
On January 29, Medient Studios Inc (OTCMKTS:MDNT) retained the services of an investment banking firm called Merriman Capital Inc who were supposed to help them with uplisting the stock to the OTCQX tier. Instead of going to the highest level, MDNT was relegated to the Pink tier on May 24.
The reason for this is very simple – the ticker failed to comply with the minimum bid price of $0.01 that is now in effect for OTCBB stocks. MDNT dropped in the sub-penny levels at the end of April and, perhaps more worryingly, it’s been going down ever since.
Yesterday, the company announced the appointment of former New York Governor, David Paterson, as a Director and MDNT‘s CEO, Manu Kumaran, made a presentation at an investor conference. A lot of people reckon that he did quite well and the new Director probably has the expertise to help the company. Despite this, MDNT lost another 20% of its value and finished the day at $0.0023 per share.
On the whole, MDNT has been one of the worst performing stocks over the last few months. Back in July 2013, for example, it was sitting well above the $2 per share mark whereas right now, the triple-zero levels seem to be looming closer and closer. Those among you who haven’t been keeping a close eye on the company might be wondering what’s going on.
We tried to warn our readers numerous times about the rather severe dilution that MDNT‘s shareholders have been put through over the last few months and it seems that right now, the huge amount of newly issued stock is starting to take its toll.
Unfortunately, dilution isn’t the only problem. The results found in the recent financial statements fall way short of the high expectations investors had for the company and a quick comparison between the reports from some time ago and the current ones reveal that MDNT‘s situation is deteriorating by the minute. Here’s what they had at the end of the first quarter:
- cash: $68 thousand
- current assets: $6.8 million
- current liabilities: $11.2 million
- quarterly revenues: $29 thousand
- quarterly net loss: $1.3 million
The question now is: “Is there anything to suggest that things might be improved in the future?“.
Investors seem to be asking themselves the same thing. They are bombarding Mr. Kumaran’s Twitter profile and they demand an explanation for the horrific dilution and for the unimpressive results. Unfortunately, the answers (when they are given) are somewhat inconclusive and vague.
Mr. Kumaran seems adamant that MDNT has never been and never will be a short-term investment and we can safely say that this is indeed the case. The company’s true potential won’t be revealed before the completion of the massive Studioplex project. Unfortunately, as you probably know, this is still a long way off and the shareholders seem understandably disappointed with the current situation.
The fact that there’s some promotional activity around MDNT isn’t helping either. The emails stopped about a week ago, but we can see that Tobin Smith, through his NBT Equities Research website, is still covering the ticker every now and then. According to the disclaimer, Mr. Smith (who, in case you don’t know, is responsible for some disastrous promotions like the ones for North American Oil & Gas Corp (OTCBB:NAMG) and Gray Fox Petroleum Corp (OTCBB:GFOX)) has received 250,000 restricted MDNT shares for investor awareness services.
