Pleasant Kids Inc (OTCMKTS:PLKD) Stays Afloat

Just a quick peek at Pleasant Kids Inc (OTCMKTS:PLKD) might leave you with the impression that the management team is hard at work keeping the shareholders happy and the company afloat.

After logging a laughable $724 in revenues during Q2, the people at PLKD‘s helm were forced to admit (rather embarrassingly considering the bombastic press releases they were issuing no more than a year ago) that the alkalized water for children business isn’t going to work.

First, they set off tidying up the share structure and turning PLKD into a more attractive proposition. On July 6, they effected a reverse split and reduced the number of issued and outstanding shares by a factor of 500. Some investors were not exactly thrilled by this, but it must be said that considering the stock’s condition back then, a reverse split was basically inevitable.

Then, PLKD decided to look for another interesting business plan. They got in contact with a private company called NEXT Group Holdings Inc which is working with communications technologies and they took a seat on the negotiating table. After a bit of an embarrassing confusion around a press release issued on August 17, PLKD were forced to publish a correction and say that the merger hasn’t really been completed. They did promise, however, that they’ll do everything they can to see the deal through.

Last month, they tried to convince everybody that they are serious about it and they said that in order to keep future dilution at bay, they are reducing the number of authorized shares from 9.5 billion all the way to just 360 million. They also filed the documents necessary to list the stock back to the OTCQB tier and earlier today they proudly announced that they have done it. Indeed, PLKD is now a OTCQB stock once again.

As a result, the ticker is performing relatively well. There are a few drops here and there, but PLKD seems to be more determined than ever to climb further up. Yesterday, it moved 15% North to a close of just over $0.11 per share and thanks to the good news from today, about fifteen minutes into the session, it’s playing with the $0.14 mark.

So, the management team is working in the company’s best interest and investors are reacting to this. Where’s the catch?

Well, there are a couple of them. Take the all important merger as an example. When they first started talking about it, PLKD said that it’s supposed to be completed by mid-October. Sadly things didn’t really worked out as planned and the deal wasn’t closed. Right now, the deadline sits at November 30 and if they fail to meet it again, there will be another 60-day extension.

As we all know, penny stock investors aren’t really the most patient bunch out there and all this waiting could start to put strain on the ticker. The same goes for dilution, by the way.

Now, as we mentioned already, the management team said on October 21 that they are going to battle it by shrinking the number of authorized shares. There is, however, a rather big gap between saying that you’re going to do something and actually doing it. And unfortunately, if Florida’s Secretary of State is anything to go by, nearly four weeks after announcing the A/S count cut, PLKD still haven’t filed the necessary documents to actually do it.