Reeltime Rentals Inc. (OTCMKTS:RLTR)’s Pump Falls on Deaf Ears
Reeltime Rentals Inc. (OTCMKTS:RLTR) celebrated its eleventh birth day on June 24. How did investors mark the occasion?
They couldn’t care less. In a matter of a full session, they traded just over $1,300 worth of stock, and instead of pushing RLTR up, they dragged it down by about 25%. Is this really a surprise, though?
Eleven years should be plenty of time to start some sort of successful business. It should be, but apparently, for RLTR at least, it isn’t. The corporate headquarters is still located in a residential house in Florida and the financial statement that was recorded just six days after the aforementioned birthday looks like this:
- cash: $1,600
- total assets: $4,640
- current liabilities: $1,092,999
- quarterly revenues: $15,000
- quarterly net loss: $195,060
The pumpers from Stock Freak and OTC Fire who got paid to promote the stock failed to mention anything about the dismal-looking financial report. They said nothing about the address of RLTR‘s principal offices, and they also kept quiet about the fact that the ticker tends to move on unconfirmed rumors sometimes.
Instead, they focused on a press release from last week which tells us all about RLTR‘s newest offering – a mobile application dedicated to a country singer called Megs McLean. The clever thing is, it uses some type of virtual reality technology which has been developed with the help of Barry Henthorn (a controversial figure in Pennyland that is at the helm of a company called Baristas Coffee Co (OTCMKTS:BCCI)). As always, we’ll leave it up to you to decide how clever and revolutionary the app actually is, and as always, we’ll say that whatever your decision, there are a few things you need to consider before you put your money on the line.
In RLTR‘s case, there are at least 16,792,600 things that you need to bear in mind. That’s the number of shares that got issued at $0.0005 apiece as a conversion of debt at the beginning of the year. A further 3,879,160 shares saw the light of day at $0.001 in April, but despite the exuberant stock issuance, there was still quite a lot of convertible debt outstanding at the end of Q2, with the conversion rates ranging from $0.001 to $0.0025 per share.
We’ve no way of knowing whether the toxic notes had anything to do with it, but it’s fair to say that the pump didn’t really work. The hype coming from the emails attracted around $85 thousand in dollar volume which isn’t all that impressive. More worryingly, instead of going up, RLTR once again stumbled and fell 32% to a close of $0.0027 per share on Friday.
This alone should be enough of a hint as to what sort of effect the toxic debt is having on RLTR.
