Tocca Life Holdings Inc. (OTCMKTS:TLIF) Explodes Into Motion
Tocca Life Holdings Inc. (OTCMKTS:TLIF) had been illiquid for a long, long time before yesterday’s burst of activity which allowed it to recover some ground after Monday’s drop.
The ticker had seen virtually no trade for months on end, before dropping 37.50% at the start of the week, then stabilizing and eventually – jumping 19.50% yesterday. Suffice it to say that there are quite a few very good reasons why it had been stuck in obscurity for so long.
The company’s news feed shows that TLIF is unenthusiastic about keeping investors informed to say the very least. It has just three press releases in total.
Still, unimpressive as the company’s newsfeed may be, it pales before the bleak picture that TLIF‘s financials for Q2 of 2015 paint:
- Cash – $9385
- Other assets – $110 thousand
- Current liabilities – $219 thousand
- Net loss – $19 thousand
The fact that over 90% of the company’s assets are of an unspecified nature should ring a bell for investors. However, after a bit of due diligence one quickly comes to the conclusion that the lack of clarity regarding that detail is the least of the company’s faults.
One look at the company’s share structure history is enough to make even the hardiest investor cringe. TLIF currently has 100 million shares outstanding. There’s nothing inherently wrong with that, and everything would be fine if it wasn’t for the fact that in order to get to that level, the company has had to perform FOUR reverse splits, each of which shrank its shares outstanding dramatically:
- On 23 January, 2002 TLIF performed a 1 for 400 reverse split
- On 18 June, 2005 TLIF performed a 1 for 20 reverse split
- On 6 March, 2013 TLIF performed a 1 for 100 reverse split
- On 12 January, 2015 TLIF performed a 1 for 500 reverse split
So why were so many splits needed? The answer to that question can be found in the company’s latest report, in the notes to financial statements part called “subsequent events”. It throws some much needed light on the matter, although said light brings a grim realization.
The company is printing stock like crazy. Seeing the staggering amounts of shares it has been giving away, it is hard not to wonder at its current share price.
How is this stock worth thirty cents? But that’s the OTC Markets for you – anything can happen, even if it looks illogical or even impossible.
However while miraculous jumps do happen on occasion, they usually don’t last. As it stands, it is very likely that some of the noteholders that were given millions of TLIF shares all those years ago, back when the company was called TOCCA Life Coaching, Inc. will be tempted to dump them on the market while the stock is still liquid. It shouldn’t be too hard to predict what could happen if that happens in the foreseeable future.
In other words – let the buyer be ware.
