Nyxio Technologies Corp. (OTCMKTS:NYXO) Doubles on News, Excitement
Yesterday’s market session pushed the share price of Nyxio Technologies Corp. (OTCMKTS:NYXO) 166% up on heavy volume. This feat would have been more impressive if the ticker did not stop at $0.0008 at the closing bell.
We last looked at the company in February this year, and back then the situation with NYXO wasn’t exactly stellar. Yesterday’s jump was caused by a press release. NYXO announced ‘a quantum leap forward’ in personal media. After a long, vague and non-descriptive paragraph full of big words, the release goes on to announce the filing of patents for NYXO‘s new graphical user interface that’s obviously going to change the world if the PR is to be believed.
Playing the publicity ace up the sleeve seems to have worked. After months of slow trading, NYXO surged dramatically. Is there a lot to be excited about, though? The company’s latest report, an annual for 2013, doesn’t suggest it.
- $27 thousand in cash
- $1.7 million in current liabilities
- $6 thousand in annual 2013 revenue
- $7.2 million in annual 2013 net loss
Those deflating numbers are accompanied by convertible notes issued to Asher Enterprises, Inc., a notorious toxic financier. As of December 2013, the unpaid principal balance on the Asher convertibles was $128 thousand. The notes, predictably, convert at a discount of 45% from an average of 3 lowest closing prices 10 days prior to conversion.
Additionally, NYXO shifted a share volume of 973.5 million yesterday. According to the company’s OTCMarkets profile and latest annual report, there were only 963.8 million shares issued and outstanding as of April 10, 2014. While it’s theoretically possible that the company shifted its entire outstanding share count and them some within a single session, it’s also not very likely.
With the authorized share count upped to 5 BILLION shares in March 2014, there’s no real way to know whether or not and how much Asher converted and what the actual outstanding share count is at the moment. This is all taking place after the company did a reverse split about a year ago and decreased its shares 450 times.
Those red flags should be sufficient for eager traders to take a closer look at the company’s filings and past performance and do their own due diligence. Cheap triple-zero stocks that make a splash always seem like an attractive bet but with toxic financiers like Asher on board and an unclear share structure there’s a lot that might go wrong.
