NanoTech Entertainment, Inc. (OTCMKTS:NTEK) Squashed Further
Yesterday NanoTech Entertainment, Inc. (OTCMKTS:NTEK) continued its downward slide on the charts and picked up the pace, dropping on heavier volume and by a larger percentage compared to Tuesday.
NTEK spent the last few months steadily fluctuating between $0.01 and $0.02, never moving much despite a couple of stock promotions that targeted the stock. The real price stir came in the wake of the last pump for the stock in late June. The company, now seemingly focused primarily on the digital TV sector, with additional operations in gaming and mobile, experienced a stunning surge, tripling from its values after the June pump.
Did NTEK climb too fast and a little too high for its own good, though? Despite some optimistic announcements the company made and the fact that NTEK retired over 200 million shares in an attempt to increase shareholder value and boost investor confidence, the financial side of things is not looking too good. Here is what NTEK had to show in their books as of March 31, 2013:
- $8 thousand in cash
- $1.4 million in liabilities
- $256 thousand in quarterly revenues
- $230 thousand in quarterly net loss
In addition to those financials that are not exactly awe-inspiring, NTEK had an outstanding convertible note in the amount of $14 thousand, which is not a big sum by any stretch of the imagination. However, those $14 thousand are convertible into shares at a price of $0.001 per share, or about 120 times lower than the peak the stock reached two days ago. Those seemingly negligible $14 thousand in convertibles could have potentially already been turned into 14 million NTEK shares and offloaded in the hands of eager buyers getting them 120 times more expensive than the note holder. While there’s no definite way to tell whether this has happened, it’s just a thought to consider.
NTEK is supposed to launch its new 4K products the coming Monday, July 15. The launch is scheduled to be both in retail stores and as an online order. Investors may have a bit of a breather when and if that happens and is confirmed through another press release.
Concurrently with yesterday’s drop of NTEK, Hanover House, Inc. (OTCMKTS:HHSE) also crashed twice as hard as in the previous session, closing 21% down. The stock prices of the two companies seem to be tethered to each other after their common project was announced and while NTEK climbed, so did HHSE. Now that NTEK has lost some of its ground after dropping 33% in two sessions, HHSE appears to follow suit.
