Pleasant Kids Inc (OTCMKTS:PLKD) Starts to Come to Grips With Reality
After a crazy run that took Pleasant Kids Inc (OTCMKTS:PLKD) to some unexpected highs, reality is starting to settle back in. Over the last two sessions the stock dropped a total of 30%, stopping at $0.274 per share by the closing bell yesterday. Volume picked up even further, at 2.2 million shares traded – the largest figure for the past month.
The stock is scuttling back down the charts after a run that was fueled by hopes and expectations about the closing of a reverse merger deal the company is working on. PLKD on its own, without the added hype of the reverse merger, has virtually nothing going for it that could excite investors. Here is what PLKD last had on its books as of June 30:
- ZERO in cash
- $778 thousand in current liabilities
- $724 in quarterly revenues
- $31 thousand in quarterly net loss
It would be refreshing to see PLKD‘s Q3 report which is now overdue by almost three weeks, but it’s still missing and there is not even a notification of late filing.
The reason why a company that hasn’t got a dime in the bank and is late with its next report was doing so well on the charts is the abovementioned reverse merger deal. It was announced in the Q2 report but it still has not been finalized. In mid-October PLKD dropped an 8-K filing informing the closing of the merger has been delayed until Nov 30, with the possibility to further delay it by another 60 days.
With no official word that the merger has indeed been finalized and closed, PLKD seems to be running out of steam rather quickly. Yesterday morning the share price took a dive below $0.20. Whether this is an indication of what’s to come in the next few sessions, given no confirmation of the merger deal arrives, remains to be seen.
