OBJ Enterprises, Inc f/k/a Obscene Jeans Corp. (OTCBB:OBJE) With Some Good News
OBJ Enterprises, Inc f/k/a Obscene Jeans Corp. (OTCBB:OBJE) and their press releases. If you have been following the company closely, you probably know that ever since they were proclaiming themselves to be a leading jeans designing venture, they have had the habit of going on the news and saying nothing that could actually be classified as “news”.
This link will lead you to a classic case in point. The article, by all means should be a press release. It came out on Reuters’ website and it has the Safe Harbor Statement section, the contact coordinates and all the things that you usually associate with press releases from publicly traded ventures. Yet, when you read through it, you’ll see that it will probably feel more at home in a fashion magazine. It actually looks more like an interview with the then-CEO, Mr. Robert Federowicz. The “press release” describes him as a fashion visionary, promotes the fact that he speaks two languages and Mr. Federowicz is also kind enough to explain to us what a “yoke” is. Despite all that, the jeans business never took off, and at one point OBJE simply decided to drop the whole thing and start something completely different. Mr. Federowicz left too. He probably felt that the other penny stock ventures that he runs, Aristocrat Group Corp (OTCMKTS:ASCC) (a vodka distilling company) and Quantum Int. Corp (OTCMKTS:QUAN) (a robotics venture that designs iPad cases) are more important than OBJE.
With that in mind, you will probably think that their press releases have become more informative, but that’s not strictly the case. On Tuesday, for example, they said that the game that they’re developing alongside Fangtooth Studios (OBJE will get “between 10 and 20 percent of the profits”), Bluff Wars 2.0 will hit a market that is absolutely exploding. Instead of giving us a launch date of some sort, they preferred to explain how rich they could potentially become and how many successful companies are concentrating a large portion of their efforts in this particular sector.
Yesterday, however, they announced something really new and exciting. A different project called Phantasmic has hit Google Play and has generated the first ever revenues for OBJE. Once again, it is a joint project between the company and an entity called Source Street, LLC but this time, OBJE will get 80% of the proceeds as well as cover for 80% of the potential losses. Joint venture or not, investors liked what they saw and the ticker responded accordingly.
That’s only normal since after years of struggling, OBJE are finally registering some sales but you should still keep in mind that no one can say for sure if the app will be a roaring success (currently, according to Google Play, between one and five people have downloaded the game). One thing is for sure – it better be.
If you have been following our articles closely, you probably know that at the end of May, OBJE had:
- total assets: $76 thousand
- current liabilities: $468 thousand
- quarterly net loss: $171 thousand
Things get even more scary when you take a closer look at the financial statement and see what sort of dilution the shareholders have gone through. During the three months between April and July, for example, OBJE issued a total of 3.4 million new shares that have put quite a lot of pressure on the investments.
What’s more, around $615 thousand worth of notes will be due within the next four weeks and if OBJE are not able to pay them off with cash, the holders are absolutely free to convert them into stock at a rate of between $0.01 and $0.05 per share. That will cause some additional dilution but an even greater worry is the fact that, because the discount is so huge, some of the creditors might decide to release the newly issued stock on the open market which could cause a massive crash similar to the one displayed by Xumanii, Inc. f/k/a Medora Corp (OTCMKTS:XUII) yesterday. Make sure you have this in mind before making any investment decisions.
