The X-Change Corporation (PINK:XCHC) Drops as Pumping Stops
The X-Change Corporation (PINK:XCHC) dropped two consecutive sessions as paid promotions came to an end late last week. After trading as high as $0.25 per share last Thursday, now XCHX stock has been clipped down almost 50% to a close of $0.14.
Promoters have had a real blast with XCHC over the last few months. The company has been hammered with four rounds of paid pumps over the last three months alone. Before the period marked up on the chart, the company was also promoted in October, August and May of 2012. Each round of pumps ended in the usual way – a huge intra-day spike, then a deflated close followed by a slump over the next days.
XCHC, formerly a telecommunications company, as their OTCMarkets profile page still lists them, now claims to make large strides in the medical marijuana business. The company announced the acquisition of assets from Cannabis Science, Inc. (PINK:CBIS), a medical marijuana company, comprising of the interest and rights in a joint venture agreement with Dupetit Natural Products GmbH, a European company, including the Phytiva brand name. XCHC agreed to pay $175 thousand in the form of 5 million shares issued as well as the assumption of $25 thousand worth of CBIS liabilities.
The joint venture with Dupetit was hyped by CBIS as a major milestone in the company’s business development last year and it’s now very strange why CBIS is willing to dump it in the hands of XCHC for such a modest sum. Following the deal with CBIS, the certified auditors of XCHC resigned from working with the company, providing no particular reason and listing no disagreement.
XCHC was next to cashless as of the date of its latest quarterly report dated September 2012, displaying the following figures:
- $1.3 thousand in total assets
- $1.2 million in liabilities
- zero quarterly revenues
- $1.4 million quarterly net loss
- $27 million accumulated deficit
Considering the company’s financial situation as well as the repeated volatile swings caused by the numerous paid promotions targeting XCHC, traders are advised to exercise extra care with such stocks.
