Ubiquitech Software Corp (OTCMKTS:UBQU) Transforms Itself Into a Pot Stock
Before we tell you what happened to Ubiquitech Software Corp (OTCMKTS:UBQU) during the pre-Thanksgiving session, we would like to draw your attention to another penny stock company – Global Links Corporation (OTCMKTS:GLCO).
Back in January, GLCO decided to take advantage of the marijuana craze that had taken over Pennyland and announced the acquisition of a website called HempLifeToday. The hype around the cannabis industry was so strong that even the mention of the word “pot” was bound to have an effect on the performance. Nevertheless, the paid pumpers also decided to pitch in and throw some gasoline in the fire. The excitement was strong enough to push the ticker on a climb that culminated in a 52-week high of more than $0.10 on March 4. Over the next eight and a half months, however, GLCO incinerated a total of 98.8% of its market cap and it’s now sitting precariously close to the triple-zero levels.
But what does that have to do with UBQU?
Well, last week UBQU announced that they have acquired the same exact website – HempLifeToday. Like GLCO, they too seem pretty excited about the new direction their company has taken and like GLCO, they too are now on the receiving end of a paid pump. Penny Picks and their affiliated newsletters have received $14 thousand and in exchange, they sent out some alerts.
The pump seems to be working as well. During Wednesday’s session, UBQU failed to gain on its previous close, but it also managed to avoid a drop. It briefly touched the $0.06 mark for the first time in more than a month and it finished the session at $0.045 per share on a dollar volume of more than $170 thousand.
All in all, the similarities between UBQU‘s position right now and GLCO‘s state in January are remarkable. The question is: “Will UBQU proceed to wipe out almost all of its value during the next few months like GLCO did?”.
We will soon find out. In the meantime, there’s little else to do but check out the filings and see how UBQU is doing without the HempLifeToday website. Here’s what the financial statement looked like at the end of August:
- current assets: $93 thousand in cash
- current liabilities: $5 thousand
- quarterly revenues: $380 thousand
- quarterly net income: $39 thousand
As you can see, things are far from perfect. The cash reserves are not solid enough and there aren’t any other current assets. We can’t ignore the positive things, however, like the fact that the company is generating revenues and the net income.
And here comes the next question: “Why wasn’t anybody interested in UBQU before the acquisition of HempLifeToday?”.
Once you take a closer look at the report, you’ll see that UBQU has printed some shares in the past which could now pose a serious threat to the future performance. On April 16, for example, when the market price was hovering around the $0.10 per share mark, UBQU issued 25.5 million shares at $0.008 a piece in exchange for services. Several days later, they printed a further 4 million shares as a conversion of debt at $0.001 per share.
Since UBQU is using the alternative reporting standard, the entities that got those shares won’t need to file anything if they decide to get rid of their holdings on the open market. Keeping this in mind before putting your money on the line is absolutely essential.
