That Marketing Solution Inc (OTCMKTS:TSTS) Spikes On New PR

After a couple of horrific weeks during which That Marketing Solution Inc (OTCMKTS:TSTS) managed to wipe 99% of its value and to drop from over 10 cents to a new 52-week low of $0.0011 last Friday the company finally managed to spike upwards. In fact the performance of the stock during the session was nothing short of impressive and as a result TSTS closed the day at $0.0024 for a gain of exactly 100%. Equally was impressive was the fact that the daily volume surpassed the previous record of 80 million traded shares and reached 82.3 million shares.

It is obvious that investors are still paying attention to the company but what caused the sudden change in sentiment? – All it took was a single PR in which TSTS announced that they have successfully micellized CBD oil. Now they will be looking to find how exactly to monetize it.

While this development is definitely a major step for the company it alone cannot offset the plethora of red flags around TSTS. So far the financial results of the company have been extremely underwhelming. According to the latest financial report at the end of May the company had:

• $3238 cash
• $74,079 total current assets
• $622 thousand total current liabilities
• ZERO revenues
• $386 thousand net loss

The lack of resources forced the management team to look for external sources of funds. As a result TSTS sold 2 convertible notes totaling $275 thousand while more recently they sold a convertible promissory note to the notorious toxic funder JMJ Financial. On October 20 the two initial notes reached maturity but TSTS failed to repay them allowing their holders to start turning them into common shares at massive discounts to the market price – as we warned you in our previous article the discounts range from 40% to 60% depending on the terms of the note. Investors should be prepared for even more dilution judging by the 8-K form filed last Tuesday. It informed us that TSTS are going to increase their authorized shares from 500 million to 1.5 BILLION. 

If the next financial report that should be filed by the end of month shows some improvements and TSTS don’t go into silence for the next several months their stock could start to recover. The potential dilution must be taken into account though and any trades should be adjusted accordingly.

In early trading today TSTS are still going strong currently trading over 29% in the green at $0.0031.