Solarwindow Technologies Inc (OTCMKTS:WNDW)’s Webcast Disappoints Investors
When Solarwindow Technologies Inc (OTCMKTS:WNDW) announced that on August 20 they will host a webcast during which the company will reveal information about its plans for the commercialization of their electricity-generating coatings for windows on tall towers and skyscrapers it understandably got investors quite excited. The stock of the company enjoyed some serious support and as a result it soared to new record highs.
On Wednesday the stock closed at $3.83 while yesterday the ticker moved even higher almost touching on 4 dollars per share. In our previous articles, however, we warned you to not get carried away as the webcast may not be able to meet investors’ expectations resulting in a massive withdrawal.
And apparently this is exactly what happened. The webcast took place late in the session and around the same time the stock began hurtling towards the bottom of the chart. In the span of a little over than two hours that were left of the trading day WNDW managed to wipe more than 22% of its value dropping to a close at $2.97.
Investors wanted to hear more concrete information about WNDW’s plans to secure new financing sources not to mention that the previously announced first-ever demonstration of the company’s product turned out to be a pre-made video that had little substance and a lot of pretty imagery.
The expectations for the webcast were rather high because taking a product to the market requires a substantial amount of funds, something that WNDW is in a dire need of. The latest quarterly report showed that as of May 31 the company had:
• $69 169 cash
• $247 thousand current assets
• $2.4 million current liabilities
• ZERO revenues
• $1.5 million net loss
With a working capital deficit of over $2 million and an accumulated deficit of $27 million the financials fail to inspire much confidence. In addition some people could get their hands on shares of the company at a fraction of the current market price. At the end of the quarter covered by the report there were around 8.8 million outstanding warrants that had exercise prices ranging from $0.64 to $1.37. On July 9 921,875 Series H Warrants with a price of $0.83 were exercised.
Without any major new catalysts the positive momentum behind the stock could continue to dissipate and without it the stock might find it hard to sustain its current price levels. Even after yesterday’s severe crash WNDW still commands an overly-inflated market cap of $78 million.
