Quantum Materials Corp (OTCMKTS:QTMM) Surges Up The Chart
At the start of 2015 the stock of Quantum Materials Corp (OTCMKTS:QTMM) commanded a share price of over 25 cents. The ticker quickly slid to a lower price range though and for the last couple of months has been fluctuating mostly between $0.14 and $0.16. All that came to end as QTMM shot upwards on increasing volumes during the last two trading sessions.
On June 25 the company announced that it has expanded its lab and manufacturing operations for its recently-launched line of heat-resistant QDX Quantum Dots. The PR also announced that the QDX Quantum Dots had reached a heat resistance of 260 degrees Celsium which is a major benchmark allowing the implementation of the Dots into solid state lighting solutions. Initially the PR had no effect on the movement of the stock and on that day QTMM actually closed flat at 15 cents. On the next day the stock registered a minimal gain of a little over 1% but then investors decided to rush towards the company.
On Monday over 1.8 million shares changed hands pushing QTMM to a close 10% in the green at $0.1675. Yesterday the positive momentum got even stronger – the near-record number of 2.5 million shares got traded while the stock spiked to a 5-month high of 22 cents. Although such prices couldn’t be supported for long QTMM still finished the session with an impressive gain of 13% at $0.19. However, will the company be able to sustain its explosive move up the chart?
The latest financial report covering the quarter ending March 31 shows that using a bit of caution when approaching the company may not be a bad idea. QTMM finished the quarter with:
• $19,439 cash and total current assets!!!
• $764 thousand total current liabilities
• ZERO revenues
• $770 thousand net loss
So far the company has been funding its business primarily through the sale of shares and although when compared to some of the other pennystock ventures the dilution has not been that massive there still are millions of underpriced shares that could be unleashed on the open market.
During the 9-month period of QTMM’s current fiscal year 22 million shares have been issued as a conversion of debt at an average price of $0.066 per share. Another 7.5 million were issued for proceeds at a price of $0.096 each. In April and May QTMM managed to strengthen their balance sheet by $1 million but in order to do so they had to sell 10 million shares at $0.10. As we said earlier, at the end of yesterday’s session the stock was sitting at $0.19 so the owners of these shares could enjoy some hefty gains if they decide to sell their holdings.
Quantum Materials have been sending samples of their products and according to the latest PR trial orders have been sent to six of the leading global display manufacturers. If the company manages to start generating revenues investors’ confidence in the stock could grow even stronger. Until then though the risks around the company should not be underestimated and trading the ticker should be preceded by extensive due diligence.
