Pleasant Kids Inc (OTCMKTS:PLKD) Rises on Uplisting News
Yesterday, near the opening bell, Pleasant Kids Inc (OTCMKTS:PLKD) dropped news that the company successfully uplisted out of the pink sheets and into the OTCQB market tier. The excited reaction to the news sent the company’s share price a massive 44% up by the closing bell, as volume picked up to 1.9 million shares traded.
Perhaps understandably, everyone is very excited about the uplisting news. It’s only natural that an OTCQB-tier business would inspire a lot more confidence in future investors and would help the company’s image. What is not helping is PLKD‘s track record and financial situation. The company still has not put up its due Q3 report and the most current financial information is from the 10-Q for the three months ended June. The figures contained in that one are not exactly pretty:
- ZERO in cash
- $778 thousand in current liabilities
- $724 in Q2 revenues (seven hundred and twenty-four dollars)
- $31 thousand in Q2 net loss
This disappointing performance stems from the unsuccessful attempt at producing alkalized water for children – a venture, which PLKD seems to have dropped in favor of a merger deal. Everyone keeping an eye on the ticker is excited about the announced reverse merger. According to plans, a company called Next Group Holdings Inc is to merge into PLKD as the deal closes. However, the closing seems as slippery as a trout in foaming water. The merger was initially supposed to close in mid-October. The deal was not finalized within that time frame and on Monday PLKD dropped a new 8-K informing the new deadline is Nov 30, with the possibility to extend that with another SIXTY days.
The balance sheet of Next Group Holdings Inc is still nowhere to be seen.
In previous articles we also discussed the reverse split PLKD executed in 2015 to the tune of a 1-for-500 shares ratio. The company also made an attempt to calm investors down by announcing a reduction of authorized shares to go with the reverse split. While OS went down 500 times, AS only decreased by a divisor of about 26, so there’s really tons of space for new dilution.
